Growthpoint Properties (GRT) Q3 2025 TU earnings summary

Executive summary

• Guidance improved, narrowing expected growth to 2%-3% for FY25, driven by stronger South African performance and V&A Waterfront outperformance.

• Focused on improving SA portfolio quality via targeted disposals and investments, with R2.8bn disposal and R2.2bn investment targets for FY25.

• International strategy centers on optimizing core investments and exiting non-core assets, including the sale of Capital & Regional plc for R2.4bn.

• All domestic portfolios showed improved performance, with GIP and V&A exceeding expectations.

• Offshore growth remains constrained, with Australia stable and Globalworth facing higher interest costs.

Financial highlights

• Distributable income per share (DIPS) guidance for FY25 updated to 2%-3% growth, up from initial guidance of a decrease.

• Trading density in regional retail up 4.5% year-over-year, rising to 5.5% in the last three months ending March.

• Retail vacancies at 5.8% of GLA, with core retail at 4.3%-4.6%; strategic redevelopments underway to reduce vacancies.

• V&A Waterfront EBIT growth at 23% as of March, with retail sales up 5% and strong hotel and office demand.

• Weighted average Rand cost of funding improved to 9.1%, and overall cost of funding declined to 7.1%.

Outlook and guidance

• FY25 DIPS growth now expected at 2%-3%, driven by improved SA performance and V&A outperformance, partially offset by lower offshore income.

• Expecting continued double-digit growth from V&A Waterfront into next year (March to March basis).

• Retail and logistics segments expected to see further growth, with ongoing asset recycling and reinvestment.

• Interest rates in South Africa and Australia anticipated to decline, benefiting future debt costs.

• Forward-looking statements caution that outcomes may differ due to factors beyond management's control.