Growthpoint Properties (GRT) H1 2025 earnings summary

Executive summary

• Distributable income per share rose 3.9% to 74.0cps and dividend per share increased 3.7% to 61.0cps, with an 82.5% payout ratio maintained; net asset value per share decreased 2.6% to 1,967cps, mainly due to asset disposals and write-downs.

• South Africa and V&A Waterfront comprise 60% of assets and contribute 65% of distributable income; offshore investments make up 37.9% of assets and 30.5% of income, with the remainder from third-party fund management.

• Group loan-to-value (LTV) improved to 40.8% from 42.3%, reflecting strategic disposals and capital management.

• The RSA portfolio has stabilised, with improved KPIs across all three sectors and ongoing portfolio optimisation.

• Asset disposal program ongoing, targeting ZAR 2.4–2.8 billion in domestic sales for FY2025.

Financial highlights

• Group distributable income increased 4.3% to R2.52bn; net property income up 2.4% to ZAR 4.997bn; group revenue (excl. C&R) up 5.0% to R6.9bn.

• SA REIT FFO per share down 3.1% to 62.8cps; NAV per share down 2.6% to 1,967cps.

• Interest cover ratio stable at 2.4x; weighted average cost of debt reduced from 9.6% to 9.2%.

• ZAR 589 million in domestic asset sales at a profit to book; ZAR 945 million invested, split between new and existing assets.

• Gross property income in RSA up 2.5% to R4.08bn; GOZ up 1.1% to R1.91bn.

Outlook and guidance

• DIPS expected to grow 1–3% for FY25, supported by improved property fundamentals and international performance.

• V&A Waterfront anticipates mid-single-digit growth for FY25, despite redevelopment projects and Table Bay Hotel closure.

• GOZ maintains FY25 FFO guidance of A$22.3–23.1cps and distribution guidance of A$20.3cps.

• GWI dividend income expected to decrease in FY25 due to higher cost of debt.

• Focus remains on balance sheet strength, ESG objectives, and capital allocation to higher-growth sectors and geographies.