Growthpoint beats guidance, lifts payout and targets faster growth

• DIPS up 3.1% to 146.3cps; DPS up 6.1% to 124.3cps.
• Guidance beaten; payout ratio lifted to 87.5% and retained for FY26.
• Balance sheet stronger: LTV 40.1%, ICR 2.5x, lower SA debt costs.

Who is Growthpoint (and what it owns)

JSE-listed Growthpoint (GRT) is a diversified REIT with R155.8bn in property assets across South Africa, a 50% stake in the V&A Waterfront, and offshore interests in Growthpoint Australia (GOZ) and Globalworth (GWI). It also runs Growthpoint Investment Partners (GIP) in healthcare and student accommodation.

FY25 Highlights (year to 30 Jun 2025)

• Returned to growth a year early: DIPS 146.3cps (+3.1%) vs prior year; DPS 124.3cps (+6.1%).
• Guidance trajectory: Started FY25 at -2% to -5%, upgraded twice, delivered above the top end (2–3%).
• Cash & liquidity: R0.9bn cash; R4.7bn undrawn facilities. Group SA-REIT LTV 40.1% (42.3% FY24).
• Finance costs down: SA weighted average cost of debt 8.9% (9.6% FY24); 6.9% including FX instruments (7.2% FY24).
• Payout ratio: FY25 blended 85% (H2 at 87.5%); 87.5% targeted for FY26.
• Strategic simplification: Exited UK (C&R to NRR; then sold NRR). Focus remains GOZ (core) and value unlock at GWI.

CEO Commentary: Norbert Sasse

“We exceeded expectations and delivered solid earnings growth while executing on our strategic priorities. SA portfolio momentum is clear, the V&A again outperformed, and disciplined treasury kept finance costs below expectations.”

“LTVs have stabilised. Our focus remains balance-sheet resilience and liquidity, underpinning competitive funding access and financial flexibility.”

South Africa Portfolio (core engine)

• Scale & contribution: R66.7bn portfolio (50.1% of assets), 51.2% of DIPS. Like-for-like NPI +5.9%; arrears contained.
• Offices: Turnaround — like-for-like NPI from -1.0% to +6.8%; vacancies 14.6%; renewal reversions improved (-14.8% to -3.2%). Longkloof complete; 36 Hans Strydom (Ninety One) net-zero redevelopment on track.
• Logistics & industrial: Strongest performer — vacancies low and falling; like-for-like NPI +5.5%; value +3.1%. New lets fill speculative space; upgrades at Centralpoint and Arterial Industrial Estate.
• Retail: Like-for-like NPI +5.3%; vacancies 4.4%. Trading densities +4.8% (community centres +7.6%; Western Cape +5.3%).
• Capital recycling: R2.5bn SA disposals (profit to book R37.9m); R1.6bn into developments/capex.
• Sustainability at scale: 61.2MWp solar (≈R1bn invested); e-co₂ green electricity wheeling launches Oct-2025 across 10 Sandton offices (Etana PPA). Water/waste intensity falling; Level-1 B-BBEE.

V&A Waterfront (50% Growthpoint share)

• Weight & performance: Value R13.3bn (~10% of assets), 16.3% of DIPS. NPI +10.4%; like-for-like +12.7%; vacancy 0.3%.
• Tourism & trading: 24m visitors; retail sales >R10bn. Lux Mall phases post-Dec 2025; operating hotels now ~600 keys with rising ADR.
• Offices/M&I: Office NPI +17% on strong demand; marine/industrial buoyed by cruise and charter activity.

International Investments

• GOZ (Australia): 23.2% of assets; 20.4% of DIPS; net distribution around R1.0bn to Growthpoint. Occupancy 94%, WALE 5.6yrs. Funds management expanded (new logistics JV; Canberra office trust).
• GWI (CEE): 12.2% of assets; 5.1% of DIPS. Portfolio €2.6bn; like-for-like NPI +6%; gearing 38%; strong liquidity. Cash dividends resumed; distribution per share down on higher finance/tax costs.
• Lango (Pan-Africa): 1.7% of assets; 0.2% of DIPS; US$200m asset deal closed; dividend R11m to Growthpoint.
• UK exited: C&R stake swapped to NRR (Dec 2024), NRR sold post-year-end at a premium, boosting liquidity and simplifying the story.

Growthpoint Investment Partners (alternatives)

• GIP AUM: R8.6bn (1.8% of assets; 3.8% of DIPS).
• Platforms: Healthcare (mandate expanded to aged living/consulting rooms) and Student Accommodation (Thrive Student Living; R425m new equity).

Looking Ahead

• Cycle turning up: Tailwinds from rate cuts, SA operational momentum, and V&A outperformance.
• Recycling continues: Around R3.5bn non-core SA disposals targeted for FY26 to fund higher-yielding opportunities.
• Guidance FY26: DIPS +3% to +5%, DPS +6% to +8%, payout 87.5%.
• Leadership: Norbert Sasse to hand over Group CEO to Estienne de Klerk on 1 July 2026.

Notes: Figures are for FY25 (year ended 30 June 2025). All amounts as provided by Growthpoint.