Laurence Rapp leads Vukile to $181 million profit in 2025

Key Points

• Net profit surged 100.75% to $181.3 million, driven by strong South African retail performance and European portfolio expansion.
• Property assets rose 37.3% to $2.82 billion, fueled by acquisitions in Portugal and Spain with average yields of 8.9%.
• South African trading density rose 5.2%, while Castellana’s shopping centers achieved 98.4% occupancy and 17.3% rental reversions.

Vukile Property Fund Limited, the Johannesburg-listed retail REIT led by CEO Laurence Rapp, more than doubled its net profit to $181.3 million for the year ended March 31, 2025. The strong result was driven by solid performance in its South African retail business and continued expansion in Spain and Portugal.

The company’s audited financials show net profit jumped 100.75 percent to R3.23 billion ($181.37 million), up from R1.61 billion ($90.35 million) a year earlier. The gain reflects its focused strategy of acquiring profitable retail centers and tightening operational efficiency.

Retail business delivers steady gains

In South Africa, Vukile’s retail portfolio recorded like-for-like net operating income growth of 6.4 percent. This was supported by stronger trading activity, with a 5.2-percent rise in annualized trading density and a further drop in retail vacancies to just 1.7 percent.

Meanwhile, its Iberian operations also made notable progress. Castellana Properties, its Madrid-listed subsidiary, saw rental reversions increase by 17.3 percent, with occupancy across its shopping centers holding steady at 98.4 percent.

The unit also reported net operating income (NOI) growth of 6.4 percent, and a weighted average lease expiry of 8.6 years—an encouraging sign of tenant stability. Vukile’s South African portfolio saw an 8.5-percent increase in valuation, while Castellana’s assets grew in value by 3.6 percent.

Iberian acquisitions drive portfolio expansion

The company’s property assets grew by 37.3 percent year-on-year to R50.27 billion ($2.82 billion), largely due to acquisitions in Portugal. These included four shopping centers purchased through Castellana, such as the €305-million Bonaire Shopping Centre in Valencia and the €63-million Forum Madeira. The deals were secured at yields averaging 8.9 percent.

Despite the expansion, Vukile kept its balance sheet on firm footing. Total assets climbed by 21.7 percent to R53.82 billion ($3.02 billion), while retained earnings rose by 19.97 percent to R2.65 billion ($148.63 million).

CEO Laurence Rapp leads strategic growthFF

Since taking over as CEO, Laurence Rapp has played a key role in expanding Vukile’s footprint in both Southern Africa and Europe. With a personal stake of over 4 million shares (0.32 percent), Rapp has overseen the growth of a R40 billion ($2.11 billion) portfolio, including its significant holdings in Spain via Castellana Properties.

In a vote of confidence, Vukile’s board approved a final dividend of R0.765 ($0.043) per share for the 2025 fiscal year, totaling R953 million ($53.46 million)—a payout ratio of 83 percent of group funds from operations. With stable operations, careful capital management, and a growing presence in key markets, Vukile is aiming for continued growth in the years ahead—backed by a clear plan and steady leadership.