Growthpoint Properties (GRT) investor relations material

Executive summary

• Distributable income per share (DIPS) grew 2.3% to 75.7cps, with dividend per share up 8.5% to 66.2cps, reflecting a higher payout ratio of 87.5%.

• Group property assets rose 1.1% to R157.5bn, while NAV per share declined 2.2% to 1,945cps.

• Portfolio rebalancing continued, with disposals of non-core assets, increased focus on logistics/industrial, and entry into senior living via the Auria acquisition.

• Offshore investments streamlined, now 35.8% of property assets and 21.6% of DIPS, with key holdings in Growthpoint Australia and Globalworth.

• Positive operational momentum, with asset sales, new developments, and a focus on portfolio optimization.

Financial highlights

• Group consolidated property assets rose 1.1% to ZAR 157.5 billion; NAV per share declined 2.2% to ZAR 19.45.

• Group LTV increased to 40.8%, mainly due to the Auria acquisition and higher LTV at GOZ; SA LTV improved to 33.2%.

• Interest cover ratio improved to 2.7x (group) and 3.2x (South Africa).

• Gross property revenue fell 9.2% year-over-year, mainly from asset disposals and lower trading/development contributions.

• Net property income up 6% like-for-like in South Africa; net property income down 4.2% group-wide to ZAR 4.786 billion.

• Finance costs dropped 15.6% due to lower debt and interest rates; RSA finance costs decreased by R211m.

Outlook and guidance

• DIPS growth of 3%-5% and dividend growth of 6%-8% expected for FY 2026, with payout ratio maintained at 87.5%.

• Confident in achieving guidance despite global uncertainties and interest rate headwinds.

• V&A Waterfront expected to deliver a strong second half as residential profits are recognized; EBIT (excluding residential) marginally up, double-digit growth including residential.

• GOZ FY26 FFO guidance: AUD23.0–23.6cps; distribution guidance: AUD18.4cps.

• Logistics and industrial sector expected to outperform; office sector stabilizing, retail showing positive trends.