Burstone Group’s diversified business model shields against global economic volatility
Burstone Group today announced resilient operating results for the year ended 31 March 2026 (FY26), led by a South African real estate market rebound, which contributed to distributable income per share (“DIPS”) increasing by 2.2% to 104.71 cents (FY25: 102.47 cents). The Group maintained its 90% payout ratio.
Management’s careful execution and disciplined approach ensured that the Group fulfilled its growth projections for the 2026 period. This allowed it to declare a dividend of 94.24cps (FY25: 92.22cps) for the period, a 2.2% increase on the prior year.
The results for the period were underpinned by solid operational performances from the South African real estate portfolio, which included the following highlights:
Like-for-like net operating income (NOI) growth of 4.2%;
Vacancy reduction from 6.7% to 2.7% and;
5% uplift in South African valuations
Andrew Wooler, CEO of Burstone Group said:
“The Group continued to deliver on our strategy as a fully integrated international real estate investor and fund and asset management business, driving earnings growth, operational efficiencies and enhanced recurring income streams. Our diversified business model proved resilient in very uncertain and volatile global economic and political environments and is what will continue to differentiate Burstone as a leading capital efficient real estate business with growth in fee income over time.”
Burstone Group’s funds management strategy continued to gain momentum across its European and Australian portfolios, with a 6% increase in equity under management (“EUM”) and fee revenue now representing 15.5% of total income.
In addition, the Group also secured a further R4.4 billion of third-party equity commitments during the period, which is expected to accelerate additive earnings growth upon deployment. This will allow the business to leverage these funds to between R10 billion to R12 billion in potential asset acquisitions.
Burstone Group CFO, Myles Kritzinger added:
“These results reflect Burstone’s diversified earnings model, underpinned by the strength of the respective real estate investments. In addition, the Group’s proactive asset recycling strategy, continued platform expansion, and refinancing initiatives supported earnings quality and enhanced balance sheet resilience throughout the year.”
Real estate investment
Burstone’s real estate income was generated across three geographies – South Africa, Europe and Australia – with performance across all regions demonstrating solid property fundamentals; South Africa remained the dominant contributor with strong NOI growth.
South Africa: The South African portfolio delivered steady income growth across a diversified asset base. The portfolio’s like-for-like (LFL) NOI increased by 4.2% year-on-year, driven by strong retail growth and recovery in the office sector, partially offset by a tenant- specific default in the industrial portfolio.
Strong leasing activity reduced the portfolio vacancy to 2.7%, compared to 6.7% in FY25. Negative reversions widened to 7.9%, from negative 4.6% in FY25, largely reflecting the expected expiry of long-dated office leases.
The portfolio delivered an upward portfolio revaluation of c. R0.6 billion (c. 5% increase) and c. R0.9 billion of asset sales during the period at close to book value (excluding Balfour Mall).
Europe: Europe provided resilient co-investment returns with reversionary upside despite increased vacancies. The performance of Burstone’s Pan European Logistics (PEL) portfolio NOI was down marginally by 3% on a LFL basis.
During the year, the Group launched its European Light Industrial (ELI) platform with Hines Group, where Hines has committed €130m of equity to support the asset aggregation strategy. Burstone will invest c. 20% of the platform equity and perform the role of investment and asset manager, leveraging its existing European footprint and management expertise across those markets. The first tranche of acquisitions (€34m) is close to completion with a significant near-term pipeline under due diligence.
Australia: The Burstone-Irongate JV continued to perform, as asset management initiatives took effect and positive rental reversions were captured.
The Australia real estate co-investments into industrial platforms, alongside capital partners TPG Angelo Gordon and Phoenix Property Investors, delivered R27 million (FY25: R1 million) of earnings and positive reversions were captured. The platforms remain under-rented relative to the market by c.20%, supporting earnings growth and material capital uplift in the medium term.
During the reporting period, the Group supported growth of these platforms by deploying R72 million of equity into two new industrial asset acquisitions.
Fund and asset management & strong relationships with global capital partners
Burstone has continued to pursue and deliver on its South African Core Plus platform, with finality expected in three months. The SA Core Plus platform catalyses the local fund management strategy, will enhance earnings and create significant capital for the Group at or near NAV.
Across Europe and Australia, the Group’s fund and asset management operations performed in line with expectations during FY26, supported by stable management fees and continued execution alongside capital partners.
This reflects the Group’s ability to attract third-party equity and its capacity to scale opportunities in partnership with leading institutional investors, such as Blackstone, Hines, La Caisse (formerly Ivanhoe Cambridge), Phoenix, TPG Angelo Gordon and Metrics and Frasers.
Balance sheet strengthened through disciplined capital recycling
During the period, Burstone built balance sheet capacity through effective asset recycling, which secured optionality and operating leverage from established platforms, enabling the Group to deploy capital selectively as opportunities emerged.
Group outlook
Burstone’s diversified business model shielded it from a volatile global macro-economic and political environment, which included tariffs, supply-chain disruptions and energy shocks contributing to rising inflationary and cost pressures across markets, placing the business on track to guide FY27 dividend per share (“DPS”) growth of between 7% and 9% driven by DIPS guidance of 4% - 6% and an increased payout ratio to 92.5%.
Burstone Group’s diversified business model is underpinned by its robust real estate portfolio, exposure to different asset classes and geographies, recurring fee income streams and multiple capital sources, which continue to support the Group’s measured growth expectations.
This is strengthened by a team with deep on-the-ground experience across markets, sectors, and disciplines, enabling the Group to identify opportunities, manage complexity, and execute with local insight.
About Burstone Group Limited (Burstone)
Burstone is a fully integrated international real estate business with R42.9 billion gross asset value under management. Burstone listed on the Johannesburg Stock Exchange (South Africa) in 2011 and currently operates in South Africa, select European markets and Australia. The Group has a strong management track record of more than 30 years’ operating in both local and international markets. The Group is globally diversified and has the capability to invest across all aspects of the real estate life cycle, partnering with specific capital partners for specific opportunities. The Group operates a hybrid model of traditional real estate investment, stapled with expertise across fund management, investment management, asset management and development management. This approach supports the Group’s strategy of delivering enhanced returns on capital deployed and maximising operational leverage from its scalable platform. Burstone strives to deliver purposeful and authentic client experiences with agility, speed and passion. The Group has the ability to identify potential that lies within something and then transform it into something of real value. Across all regions in which the Group operates, the manager has a presence on the ground with in- country expertise and adopts a hands-on approach to managing its properties. For more information, visit: www.burstone.com
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