Growthpoint Properties (GRT) H2 2025 earnings summary

Executive summary

• Distributable income per share increased by 3.1% to 146.3 cps, and dividend per share rose 6.1% to 124.3 cps, with a payout ratio averaging 85% for the year.

• Group LTV improved to just over 40% from 42.3%, and net asset value per share declined by 1.6%.

• Major asset disposals included the exit from Capital & Regional and NewRiver, with proceeds used to strengthen the balance sheet and fund growth.

• Strategic focus on capital recycling, non-core disposals, and targeted investment in high-growth sectors and regions.

• Leadership transition planned: Estienne de Klerk to become Group CEO in July 2026, with José Snyders joining as Group CFO in January 2026.

Financial highlights

• Gross property income decreased by 4% to R13.9 billion, net property income down 2.9% to R9.7 billion, and property expenses fell 6.4% to R4.2 billion.

• Distributable income reached R4.964 billion, up 3.1% year-over-year; SA REIT FFO flat at R4.436 billion.

• Total property assets declined by 10% to R155 billion, mainly due to asset sales and negative revaluations.

• Group interest cover ratio improved to 2.5x; South African ICR at 2.9x.

• Debt reduced from R70 billion to R61 billion, with R4.7 billion in available liquidity.

Outlook and guidance

• Distribution per share growth forecasted at 3–5% for FY2026; dividend per share growth expected at 6–8% due to higher payout ratio.

• Positive outlook for South African business and V&A Waterfront, with double-digit distribution growth anticipated from the latter.

• Offshore investments (GOZ, Globalworth) expected to remain stable or show modest growth.

• RSA portfolio in a growth phase, but NPI will be impacted by disposals targeting R3.5bn in FY26.

• GOZ FY26 FFO guidance: A$22.8cps–A$23.6cps; distribution guidance: A$18.4cps.