ACSION LIMITED
Investment Analysis: Acsion Limited (JSE: ACS)
Date: 10 January 2026 Share Price: ~R10.00 (1,000c) Analyst Role: Senior Equity Analyst, JSE
Step 1: Data Gathering & Source Verification
I have reviewed the most recent financial disclosures and SENS announcements. Acsion differs from most REITs as it acts more like a property developer that retains its assets.
- Interim Results: Reviewed the Unaudited Condensed Consolidated Interim Results for the six months ended 31 August 2025 (Released 27 November 2025).
- Annual Financial Statements: Reviewed the Audited Annual Financial Statements for the year ended 28 February 2025 (Released 1 July 2025).
- SENS Activity (L12M): Key announcements include the Interim Dividend Declaration (November 2025), significant dealings in securities by associates (consistent buying by the Anastasiadis family trust in August 2025), and updates on the Cyprus expansion.
Data Sources:
- Interim Results (Nov 2025):
https://senspdf.jse.co.za/documents/SENS_20251127_S514004.pdf - Annual Results (July 2025):
https://senspdf.jse.co.za/documents/SENS_20250701_S507010.pdf
Step 2: Metric Extraction
| Metric | Value | Notes |
| --- | --- | --- |
| Market Cap | ~R4.07 Billion | Small-cap, developer-led property counter. |
| Dividend Yield (L12M) | ~4.2% | Low Payout. Total L12M dividend of 42 cents (Final FY25: 20c + Interim FY26: 22c).
Note: Acsion is not a REIT (Real Estate Investment Trust); it is a "Real Estate Operating Company." It retains the majority of its earnings for development, hence the low yield compared to REIT peers (which pay >9%). |
| Liquidity Check | Illiquid / High Risk | Trading volumes are extremely thin. Days often pass with minimal volume. It is tightly held by the founder (Kiriakos Anastasiadis), leaving a small "free float" for public investors. |
| P/E Ratio | ~5.9x | Undemanding. Based on trailing Headline Earnings Per Share (HEPS) of ~169 cents. The low multiple reflects the "holding company discount" and lack of liquidity. |
| Net Asset Value (NAV) | 3,181 cents | Massive Discount. The stock trades at a ~69% DISCOUNT to NAV (Price R10.00 vs NAV R31.81). Investors are paying 31 cents for R1.00 of assets. This is one of the deepest discounts on the JSE. |
| Loan-to-Value (LTV) | 5.0% | Fortress Balance Sheet. The company is effectively unleveraged compared to the sector average of 35-40%. This provides immense resilience against high interest rates. |
Step 3: Operational & Strategic Analysis
Business Overview Acsion is a highly specialized property developer and owner. Unlike traditional funds that buy completed buildings, Acsion buys land, develops it, and holds it.
- Key Assets: Mall@Carnival (Brakpan), Mall@Reds (Centurion), and Metropolis Mall (Larnaca, Cyprus).
- International Pivot: The Metropolis Mall in Cyprus is the group's crown jewel outside SA. It provides Euro-denominated income, hedging against the Rand.
Performance Trend
- Earnings Growth: In the August 2025 interims, Revenue grew 8% to R811.3 million. More impressively, Headline Earnings Per Share (HEPS) surged 45% to 95 cents.
- Operational leverage: The company is running efficiently. The massive jump in HEPS vs. Revenue suggests that their fixed-cost base is stable, and new rental income falls straight to the bottom line.
- Valuations: NAV per share increased 14% to 3,181 cents. The valuation of the Cyprus asset continues to rise in Euro terms, boosted further when translated back to weak ZAR.
- Vacancy: Remains industry-leading (often <5%) due to their dominance in the semi-urban nodes they operate in (e.g., Moutsiya).
Sector Context
- Developer vs. REIT: Because Acsion doesn't have to pay out 75% of distributable income like a REIT, it can self-fund growth (solar plants, new wings). This makes it less sensitive to high interest rates than peers who must borrow to build.
- Cyprus Economy: The Cypriot economy is outperforming the broader Eurozone, driving strong footfall at Metropolis Mall.
Step 4: The Verdict
Bull Case (Why Buy): Deep Value & Privatization Potential. You are buying a portfolio of dominant malls and a Euro-based asset for 31 cents on the Rand. The balance sheet is bulletproof (5% LTV). The founder (Anastasiadis) has been consistently buying shares in the open market (e.g., Aug 2025). This signals that insiders believe the share is undervalues. The "End Game" here is likely a delisting/buyout at a premium to the current price, as the public market clearly doesn't appreciate the asset value.
Bear Case (Why Sell): The "Value Trap" & Liquidity. Acsion has traded at a massive discount for years. Without a catalyst (like a special dividend or unbundling), the discount may never close. As a minority shareholder, you have very little say; the company is run like a private family business. The low dividend yield (4.2%) means you are not paid to wait, and the illiquidity means you cannot exit a large position without crashing the price.
Fair Value Estimate: R15.00 - R16.00 Even at R15.00, it would still trade at a 50% discount to NAV, which is a conservative target given the lack of liquidity.
Final Rating: SPECULATIVE BUY / HOLD This is not a stock for income seekers. It is a high-conviction bet on deep value realization (buyout). If you buy, be prepared to hold for 3-5 years.