Our opinion on the current state of EXEMPLAR(EXP)

Exemplar (EXP) is a real estate investment trust (REIT) specializing in rural shopping centers, leveraging its partnership with McCormick Property Development. Since listing on the JSE in 2018, Exemplar has developed a unique portfolio of 26 shopping malls primarily located in rural and high-density urban areas, such as Alexander Township and Chris Hani Crossing, with a gross lettable area of over 414,555 square meters. The company’s asset base is valued at just over R5 billion, with an additional R10 billion in properties under development.

Under CEO James McCormick, who brings over 35 years of experience in South African property development, Exemplar has adopted a niche approach that aligns well with South Africa's population distribution and retail demand. With a tenant mix focused on essential services, the company has shown resilience against economic disruptions, including those brought by COVID-19.

For the six months ending 31st August 2024, Exemplar reported a 9.79% increase in revenue and a significant 28.48% rise in headline earnings per share (HEPS). Its net asset value (NAV) per share grew by 6.43% to 1526c, reflecting the company’s strong performance and growth potential. However, from a private investor’s perspective, the limited daily trading volume of Exemplar shares makes it challenging to consider as a liquid and practical investment option.