Operator

Good day, ladies and gentlemen, and welcome to the Sanlam 2026 3-month Operational Update. [Operator Instructions] Please note that this event is being recorded. I will now hand the conference over to Paul Hanratty. Please go ahead, sir.

Paul Hanratty
Group CEO & Executive Director

Irene, thank you very much, and good afternoon, ladies and gentlemen, and thank you very much for joining us on this call today. I am joined on the call today by our Group Finance Director, Abigail Mukhuba; our Group Chief Risk Officer and Chief Actuary, Mlondolozi Mahlangeni; and our Head of Investor Relations, Tokelo Mulaudzi.

Earlier today, we released our operational update for the first 3 months of 2026. I’ll provide a very brief overview of our strategic progress and operational performance before we’ll open the line for questions.

The group is investing in organic growth. And while this puts some short-term pressure on earnings, it underpins future growth. Against this backdrop, I’m going to cover 5 points briefly in order, I hope, to assist you in making some sense of the quarter’s performance.

First off, the group continued to make excellent progress in the execution of strategic priorities in the quarter. We closed the Ninety One transaction in early

Indians remitted $2.59 billion overseas in March 2026 under the Reserve Bank of India’s Liberalised Remittance Scheme (LRS), a 10.9% jump from $2.34 billion in the previous month, but lower than the $2.68 billion recorded in January, RBI data showed.

Travel remained the single largest category of outward remittances, accounting for $1.09 billion in March, and lower than the $1.31 billion in February and $1.66 billion in January, suggesting a seasonal moderation after the peak travel months.

Investment in equity and debt saw a sharp uptick, rising by 65.5% to $440 million in March 2026 from $266 million in February. Deposits abroad recovered sharply to $176 million in March 2026, up from $56.9 million in February and $48.6 million in January.
Remittances for studies abroad moderated to $151.7 million in March from $267.4 million in January, the latter number likely reflecting the January semester commencement cycle when fee payments are typically concentrated.

India’s Real Estate Investment Trusts (REITs) are steadily emerging as a mainstream investment avenue for retail investors seeking stable yields, long-term capital appreciation, and exposure to institutional-grade real estate assets without directly owning property.

Industry experts believe the next phase of growth for India’s REIT market could significantly broaden retail participation as the ecosystem expands beyond office assets into sectors such as warehousing, logistics, hospitality, retail, and data centres.

REITs, or Real Estate Investment Trusts, were originally introduced in the US during the 1960s to enable retail investors to participate in income-generating commercial real estate through stock exchanges.

In India, REIT units are listed on the NSE and BSE and are regulated by the Securities and Exchange Board of India (SEBI), offering high levels of disclosure, governance, and transparency.

According to data from the Indian REIT Association, India currently has five listed REITs with a combined market capitalisation of nearly Rs 1.7 lakh crore as of May 15, 2026.

Cushman & Wakefield’s Q1 2026 Capital MarketBeat report also highlighted that REITs accounted for 26% of institutional real estate inflows during the quarter, underscoring their growing relevance in the investment ecosystem.

REITs Becoming a Bridge Between Real Estate and Financial Markets

Pratik Tibrewala- Senior-Vice President & Head Corporate Finance – M3M said REITs have emerged as a critical mechanism to address India’s high cost of capital while supporting the country’s long-term urbanisation and infrastructure needs.
According to Tibrewala, REITs have evolved into a preferred monetisation route for stable income-generating office and retail assets over the last eight years and are now expanding into new-economy sectors such as logistics and data centres. He noted that predictable quarterly yields have attracted increasing participation from family offices, mutual funds, and debt investors.

Tibrewala added that India remains at an early stage of REIT penetration despite being one of Asia’s largest real estate markets across office, retail, warehousing, and data centres. He expects the ecosystem to grow significantly in terms of scale, value, and asset diversity in the coming years.

Importantly, he pointed out that REITs are accelerating the financialisation of Indian real estate by channeling domestic savings into infrastructure-linked income assets, while also opening monetisation opportunities for regional developers through acquisition of third-party assets.

Retail Participation Expected to Rise Sharply

Raunaq Arora & Maanu Dewan (Founders Ace Consulting – Real Estate Consultancy Firm based out of Gurugram) said, India’s REIT ecosystem is rapidly transitioning from an early-stage product into a mainstream investment category.

The founders noted that listed REITs in India have already distributed more than Rs 22,000 crore to unitholders since inception, reflecting stable income generation and rising investor confidence. They believe growing domestic participation is helping widen the capital base of the sector.

Arora and Dewan expect three major trends to shape the next phase of REIT growth in India — expansion beyond office assets into retail, warehousing, hospitality, and mixed-use developments; greater retail investor participation due to predictable yields and lower ticket sizes; and stronger institutional participation as REITs increasingly become part of core investment portfolios.

They added that as India’s Grade A office stock and income-generating assets continue to expand, REITs could play a role similar to mature global markets by improving liquidity, transparency, and long-term capital formation in the real estate sector.

Democratising Access to Real Estate Investments

Pushpender Singh, Managing Director, JMS Group said REITs have significantly changed the nature of real estate investing in India by making the sector more accessible and transparent for investors who may not have the ability or desire to buy physical real estate assets directly.

He believes that as regulations strengthen and the market matures further, REITs will increasingly become an integral part of investment portfolios while helping bridge the gap between real estate and traditional financial investments.

Meanwhile, Manik Malik, CEO and President, BPTP said India’s REIT market still remains at an early stage compared to mature global economies, suggesting substantial room for future growth.

According to Malik, REITs are gradually transforming real estate from a traditionally illiquid and ownership-driven asset class into a transparent, yield-oriented financial product. He also highlighted that REITs are democratising access to institutional-quality real estate assets for both retail and institutional investors.

Malik added that regulatory developments such as the introduction of SM-REITs could further deepen retail participation in the sector. He expects the next phase of REIT growth to be driven by diversification into sectors including hospitality, logistics, warehousing, retail, and data centres.

A Long-Term Wealth Creation Opportunity?

Industry experts believe India’s REIT ecosystem is approaching an important inflection point as rising investor awareness, stable yield expectations, and improving market depth continue to attract both retail and institutional capital.

With lower ticket sizes, predictable distributions, and exposure to premium commercial assets, REITs are increasingly being viewed as a potential long-term wealth creation avenue for retail investors looking beyond traditional options such as fixed deposits, equities, or direct property ownership.

As India’s commercial real estate market expands and becomes more institutionalised, REITs could emerge as one of the most important investment categories in the country’s evolving financial landscape.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Choosing PEZA favors export-focused operations with zone controls; BOI suits domestic or mixed markets, offering broader site flexibility and simplified compliance, influencing incentives, operations, and supply chain setup.

Choosing Between PEZA and BOI

Deciding between the Philippine Economic Zone Authority (PEZA) and the Board of Investments (BOI) hinges on whether a business focuses on export compliance or domestic market access. PEZA is tailored for export-driven operations, offering benefits for companies that generate approximately 70% or more from exports. Conversely, BOI caters to domestic market activities, including local distribution, retail, wholesale, and e-commerce, suitable for businesses with a primarily internal sales focus. This choice impacts revenue eligibility, tax incentives, and supply chain design.

Operational and Location Considerations

PEZA requires physical presence within designated economic zones, providing customs supervision and duty facilitation but limiting operational flexibility. BOI allows companies to set up anywhere nationwide, such as Metro Manila, Cebu, or Davao, enhancing distribution efficiency. While BOI offers greater location freedom, it lacks automatic access to bonded systems available within PEZA zones, influencing logistics and import/export processes.

Eligibility, Compliance, and Transition

PEZA registration demands continuous export performance monitoring within a controlled environment, favoring companies committed to export growth. BOI emphasizes performance-based reporting aligned with registered activities, offering more operational flexibility but requiring diligent compliance. Transitioning between PEZA and BOI involves restructuring, often costly and disruptive, underscoring the importance of choosing the appropriate registration pathway during the initial setup.

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Read the original article : PEZA vs BOI in the Philippines: Which Incentive Structure Fits Your Manufacturing or Logistics Model?

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The 20 wealthiest Asian clans have a combined net worth of $647 billion. Despite growing concerns over an AI bubble, these powerful families continue to maintain substantial financial influence. Their extensive wealth underscores their significant role in the region’s economic landscape, highlighting both their stability and the ongoing impact of technological advancements on wealth accumulation.

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Artificial Intelligence (AI) is transforming Asia’s wealth landscape by empowering its richest families with unprecedented technological advantages. These families are leveraging AI-driven data analysis and automation to optimize their investments, streamline operations, and make more informed decisions. For instance, many business dynasties in China and India utilize AI to enhance supply chain efficiency, predict market trends, and identify lucrative opportunities faster than ever before. This technological edge allows them to maintain and grow their wealth in an increasingly competitive environment.

Moreover, AI-enabled insights are revolutionizing sectors like finance, real estate, and manufacturing, where Asia’s elite families have vested interests. AI algorithms assist in uncovering hidden market patterns, enabling strategic acquisitions and asset management. These innovations not only boost profitability but also secure long-term dominance within their respective industries. As AI continues to evolve, it will likely further widen the wealth gap, making Asia’s richest families even more powerful.

In conclusion, AI’s influence is amplifying the fortunes of Asia’s elite, providing them with tools for more aggressive expansion and wealth preservation. By embracing cutting-edge technology, these families are cementing their status in the global hierarchy of wealth. As AI developments accelerate, it is clear that Asia’s wealthiest are set to benefit even more, profoundly shaping economic power dynamics across the continent.

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Günther Ofner
CFO & Member of the Management Board

You already saw our main results, and we had a moderate revenue and earnings increase in Q1 ’26. Revenue up 6.1%, EBITDA up 8.2%, and group net profit up 5.3%. We saw overall a positive traffic development in the group with 5.3% plus, especially resulting in strong growth in Malta and Košice. In Vienna, it was 1.6%, including Air India transit passengers in the refueling stops. We saw a positive non-aviation performance, higher de-icing revenues and no winter incentive compared to 2025, which positively contributed to our results. We successfully implemented and are still in the process of implementation of our cost saving and efficiency measures. And I hope we can realize all the plans throughout the year.

Clearly, the Middle East conflict is increasing uncertainty for the coming months. And hopefully, these negative effects will stop very soon. What might be of more importance midterm, at least are the effects of higher fuel costs, which might result in some airline capacity adjustments and also higher ticket prices by many of the carriers to offset these additional costs. Despite all that uncertainty, we can confirm our passenger and financial outlook for 2026 so far. And I hope that the rest of the year will not prove us wrong.

If we move on, you see that our financial results are positive, also reduced by half due to the fact that

India’s foreign direct investment (FDI) inflows increased 17.2% year-on-year to $94.5 billion in 2025-26, aided by overseas investor interest despite global macroeconomic uncertainty and volatile capital flows, according to the Reserve Bank of India‘s latest monthly bulletin.

Gross FDI inflows stood at $94.5 billion in 2025-26 compared with $80.6 billion in the previous year, while net FDI inflows increased sharply to $7.7 billion from $1 billion a year ago.

“On the capital account, gross FDI has been encouraging,” the RBI said, adding that inflows are expected to remain robust amid a recent wave of greenfield investment announcements, particularly in the finance and technology sectors.

The central bank said that March marked the second consecutive month of positive net FDI inflows, despite moderation in gross inflows, aided by lower repatriation and outward FDI. Outward FDI also eased in March, with more than half of the investments directed towards Singapore, the UAE and the Netherlands.

Meanwhile, external commercial borrowings moderated to $43 billion in 2025-26 from $61.2 billion a year earlier, as Indian companies turned cautious on overseas borrowings amid elevated global interest rates and relatively attractive domestic funding conditions.
The RBI also flagged continued pressure from foreign portfolio investor (FPI) outflows. FPIs remained net sellers in April and May amid geopolitical tensions and uncertainty in West Asia, with cumulative outflows of about $10 billion so far in 2026-27, largely from equities.

By Jennifer Nash

Despite a rough start to the week, the S&P 500 rallied in the back half to post its eighth consecutive weekly gain, its longest streak since 2023. Ultimately rising 0.9%, the index is now inches away