Growthpoint beats guidance, lifts payout and targets faster growth

By Neale Petersen

September 10, 2025

REITs:

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.

‍