SA’s largest REIT delivers strong turnaround results

• Distributable income per share rises 2.3% while dividend per share jumps 8.5%, signalling renewed earnings momentum.
• South African portfolio strengthens with lower vacancies, stronger leasing metrics and improving sector fundamentals.
• V&A Waterfront, logistics assets and renewable energy investments stand out as key drivers of future growth.

Growthpoint builds momentum with solid half-year results

‍South Africa’s largest listed property landlord, Growthpoint Properties, has delivered another set of encouraging results, signalling that its turnaround strategy is gaining traction.

For the six months to 31 December 2025, the JSE-listed REIT reported distributable income per share (DIPS) of 75.7 cents, up 2.3% on the prior period. With its payout ratio lifted from 82.5% to 87.5%, the dividend per share increased 8.5% to 66.2 cents.

The results place the group firmly on track to achieve its FY26 guidance of 3% to 5% DIPS growth and 6% to 8% dividend growth, reflecting improved operational performance and lower finance costs.

Growthpoint’s total property assets increased to R157.5 billion, while its balance sheet remains conservatively structured with a loan-to-value ratio of 40.8% at group level and 33.2% in South Africa.

Lower borrowing costs also supported earnings. The weighted average cost of debt fell to 8.5%, down from 9.2% a year earlier.

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“Growthpoint has done well to achieve solid earnings growth by focusing on effective strategic execution, disciplined capital management and building positive growth momentum, putting the company in its strongest position in years,” says Norbert Sasse, Group CEO of Growthpoint Properties.

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Strategic capital allocation driving portfolio quality

‍A central pillar of Growthpoint’s strategy has been disciplined capital recycling and improving the quality of its portfolio.

Over the past decade the company has reduced its property count from 471 assets to 314, deliberately disposing of lower-quality assets while investing in stronger nodes and modern developments.

During the reporting period alone, Growthpoint disposed of 15 non-core properties worth R935.5 million while investing R545.4 million in developments and capital upgrades.

This capital allocation strategy has reshaped the portfolio mix:

• Logistics and industrial exposure increased from 15% to 19% of portfolio value.
• Office exposure declined from 46% to 42%, largely through the disposal of lower-grade assets.
• Retail exposure remained stable at 39%, but with fewer and stronger shopping centres.

The focus is increasingly on clustered precinct developments, where modern offices, retail, residential and lifestyle elements create stronger tenant demand and higher long-term income stability.

South African portfolio shows clear improvement

‍Growthpoint’s South African portfolio, valued at R66.8 billion, remains the backbone of the group, accounting for 50.7% of total assets and 58.3% of distributable income.

Operational metrics across the portfolio have improved notably:

• Vacancies declined to 7.2% from 8.3%.
• Like-for-like net property income grew 6%.
• Lease renewal success improved to nearly 80%.

These figures indicate that tenant demand is strengthening, even though rental growth remains modest.

Logistics and Industrial

‍The logistics and industrial sector continues to be the standout performer.

Vacancies remain extremely low at 3.3%, effectively reflecting normal tenant turnover. Like-for-like income increased 5.6%, supported by strong leasing demand and new developments.

The Western Cape remains a particularly strong market, with positive rental renewal growth of 7.3%, while Gauteng and KwaZulu-Natal are stabilising.

Growthpoint is actively expanding this sector through developments such as Indlovu Logistics Park in Montague Gardens and Tecoma Park in Cornubia.

Retail
Retail assets have delivered impressive stability, reflecting strong centre management and careful asset repositioning.

Retail vacancies fell to 3.2%, the lowest level in more than a decade, while net property income grew 6.3%. Tenant turnover increased 2.7% and shopper footfall rose 0.7% during the six-month period.

Food-related categories, homeware and restaurants have been among the strongest performers.

Growthpoint continues to enhance its retail portfolio through targeted redevelopments, including upgrades at Paarl Mall and Walmer Park Shopping Centre.

Office
The office sector is slowly but steadily recovering. Vacancies declined from 15.9% to 13.7%, while net property income grew 5.8%, extending a positive trend over several reporting periods.

Growthpoint is repositioning its office portfolio around modern precinct environments that offer lifestyle amenities and integrated mixed-use developments.

Recent highlights include the net-zero redevelopment of 36 Hans Strydom in Sandton and the construction of the Sandton Drive Link Bridge, connecting the company’s office buildings directly to Sandton City.

Sustainability and Energy Investment

‍Growthpoint continues to embed sustainability into its core strategy.

Renewable energy penetration across the portfolio almost doubled from 7.9% to 14.5% during the six-month period.

The company has now invested R1 billion in solar installations, with 84 solar plants and 61.7MWp capacity, positioning it as one of the largest commercial solar generators in South Africa.

A major milestone was the start of electricity supply from the Boston Hydroelectric Plant in the Lesotho Highlands, delivered through Growthpoint’s 195GWh renewable energy agreement with Etana Energy.

These initiatives not only reduce carbon emissions but also help tenants mitigate rising electricity costs.

V&A Waterfront remains a flagship asset

Growthpoint’s 50% stake in the V&A Waterfront in Cape Town continues to be one of the most valuable assets in its portfolio.

The precinct is now valued at R14.1 billion and contributes 15.7% of group distributable income. Despite the temporary closure of the Intercontinental Table Bay Hotel and the redevelopment of the luxury retail wing, the V&A still delivered 8.7% like-for-like net property income growth.

Tourism remains a major driver:

• 25 million visitors were recorded in 2025.
• Retail sales exceeded R11 billion, with December sales alone reaching R1.4 billion.
• Vacancy across the precinct remains virtually non-existent at 0.3%.

Luxury brands such as Louis Vuitton, Gucci and Versace will open expanded stores in the newly developed Lux Mall by September 2026, further strengthening the V&A’s global positioning.

International portfolio adds diversification

Growthpoint’s international investments account for 35.8% of total assets and 21.6% of distributable income.

Its largest offshore investment remains Growthpoint Properties Australia (GOZ), which contributes nearly 19% of DIPS. The Australian portfolio continues to perform well, supported by strong population growth, immigration and stable economic conditions. GOZ recorded 1.1% distribution growth and maintains 95% occupancy with a 5.6-year weighted lease term.

In Eastern Europe, Globalworth Real Estate Investments, which operates in Poland and Romania, maintains a robust balance sheet despite macroeconomic pressures.

Growthpoint also holds a stake in Lango Real Estate, which focuses on commercial property investments across Africa.

Looking Ahead: Growth path strengthens

Growthpoint enters the next phase of its strategy with improving operating metrics and a clearer focus on high-quality assets.

The group is targeting R3.5 billion in South African asset disposals in FY26 to continue improving portfolio quality while reducing debt.

Major development projects are underway across logistics, retail, residential and student accommodation, while the V&A Waterfront is entering a new growth phase with additional residential, hotel and marina developments.

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“Growthpoint’s diversified portfolio and income, together with its focus on sustainability and operational excellence, position the business strongly for future growth,” says Sasse.

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With improving fundamentals across its key sectors, logistics, retail and offices and continued investment in premium assets like the V&A Waterfront, South Africa’s largest REIT appears firmly back on a growth trajectory.

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