Growthpoint Properties Limited’s (JSE: GRT) half-year results for the period ended 31 December 2025 cement its early turnaround to positive distribution growth. Distributable income per share (DIPS) increased 2.3% from the prior half year to 75.7cps and, with the payout ratio lifted from 82.5% to 87.5%, the total dividend per share (DPS) of 66.2cps is up 8.5%.
The strong results, led by clear performance improvement in the strengthened South African portfolio and lower finance costs, show a business primed for growth and on track to meet its FY26 guidance of 3.0% to 5.0% DIPS growth and 6.0% to 8.0% DPS growth, with an 87.5% payout ratio for the financial year.
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.Norbert Sasse, Group CEO of Growthpoint Properties
Growthpoint delivered rewarding financial results. Total property assets increased 1.1% to R157.5bn. The Group SA REIT loan-to-value (LTV) ratio is a conservative 40.8% and the SA business’s SA REIT LTV is a low 33.2%. The interest cover ratios (ICR) improved to 2.7x for the group and 3.2x for the SA business. Growthpoint retains strong liquidity, with R545.1m in cash and R5.7bn in unutilised committed debt facilities and enjoys excellent access to funding at attractive margins.
SA finance costs decreased, with lower average borrowings and a lower weighted average cost of debt of 8.5% compared to the 2025 half year (HY25) of 9.2%, and 6.7% (HY25: 7.2%) when including foreign exchange instruments. Total nominal debt at HY26 decreased to R36.9bn from R39.1bn at FY25.
Growthpoint remains committed to long-term balance sheet resilience and liquidity, with continued access to competitive funding ensuring financial flexibility for strategic goals.Norbert Sasse, Group CEO of Growthpoint Properties
Growthpoint has a diversified portfolio and defensive income streams. It advanced its strategic initiatives to improve the quality of its SA portfolio which, as a result, is now poised for growth, while also strengthening its ESG performance together with its strategy to optimise its international investments.
To improve the quality of the directly held SA portfolio of logistics and industrial, office and retail properties, Growthpoint focuses on high quality developments, strategic disposals and investments.
Over the past decade, it has trimmed asset numbers in the portfolio from 471 to 314, reducing gross lettable area by 24.0%. Reducing the property count has simultaneously increased the quality of the portfolio’s income streams. Increasingly, particularly in the office and logistics and industrial sectors, its investments are being clustered within precincts, creating a portfolio of high-performing assets in quality, secure and well managed environments that offer superior amenities to tenants.
In HY26, Growthpoint disposed of 15 non-core properties (including trading and development) for R935.5m, near book value, and invested R545.4m in value-adding development and capital expenditure.
As a result of its portfolio enhancement over the past decade (from 1 July 2016), Growthpoint has strategically grown its logistics and industrial assets from 15.0% to 19.0% of the total SA portfolio value. By increasing exposure to modern logistics warehouses, which are now over half of the portfolio, and to better performing nodes while selling primarily older industrial and manufacturing facilities in deteriorating nodes, it has refined the portfolio from 227 properties totalling 2.2m square metres gross lettable area (GLA) to 133 properties just over 1.6m square metres.
It also reduced its office exposure from 46.0% to 42.0% of portfolio value by reducing exposure to primarily B‑ and C‑grade assets, non-core business nodes and taking advantage of strategic opportunities in the market, streamlining the portfolio from 182 properties to 145 or 1.6m square metres of GLA. As a result, all C-grade assets have now been sold. At the same time, Growthpoint is aligning its office assets more closely with modern business needs, with a focus expanding beyond its buildings and into mixed-use precincts.
Retail property assets remain a steady 39.0% of the total portfolio value, but the number of retail properties has nearly halved from 58 to 31, which now span just over 1.0m square metres of GLA. The shift has seen Growthpoint exiting declining central business districts and smaller assets. Recent or upcoming redevelopments and upgrades at all its long-hold shopping centres are shaping a more focused, and high-performing retail portfolio.
Optimising its international investments, Growthpoint disposed of its entire NRR stake at a market premium price of 75.0pps raising gross sale proceeds of R1.3bn thereby exiting its investment in the UK while bolstering its balance sheet and liquidity position.
Growthpoint continues to evaluate options to maximise value from its 29.6% stake in Globalworth Real Estate Investments (GWI), where it is supporting value-unlock initiatives. Progress is being made among shareholders in respect of the future strategy for the company.
In SA, Growthpoint owns and manages a R66.8bn diversified core portfolio of retail, office and mixed-use precincts, logistics and industrial, and trading and development properties, representing 50.7% of Growthpoint’s total asset book value. This portfolio contributed 58.3% of DIPS.
Vacancies reduced to 7.2% (HY25: 8.3%), like-for-like net property income (NPI) grew at 6.0%, the renewal success rate improved notably to 79.5% (HY25: 68.8%) with the weighted average lease term on renewal increasing from 3.6 years at HY25 to 4.0 years at HY26. Together, these improving metrics signal positive momentum, even though rental renewal growth is still negative at -4.0%. The SA balance sheet is robust, with conservative leverage at 33.2% (HY25: 35.3%) providing capacity to grow decisively.
The SA portfolio value increased 0.7% or R500m, driven by disciplined capital recycling with proceeds from its R935.5m in assets sales powering strategic capital recycling and targeted developments to improve the portfolio quality.
The logistics and industrial portfolio continued to deliver strong performance, driven by asset rotation adding high-quality developments, active leasing and improved recoveries, as well as improvement in overall sector dynamics. Low vacancies of 3.3% (HY25: 3.5%) effectively represent tenant churn at the reporting date and new logistics facilities that were let post HY26. They are likely to remain at these negligible levels for FY26. Like-for-like NPI increased to 5.6% (HY25: 3.5%) and the portfolio value, which remains conservative, grew by 0.8%. Rental renewal growth in the Western Cape is a positive 7.3% (FY25: 8.2%), while in KZN it improved, reaching -3.6% (FY25: -4.6%), and in Gauteng it deteriorated slightly to -2.0% (FY25: -1.8%). Overall, 50.6% of new and renewed leases were signed at the same or higher rentals.
This portfolio has evolved into a more focused, higher-performing selection of assets, over half of which are logistics and warehouse properties, and it has been strengthened with high-quality developments. The portfolio metamorphosis is set to continue, with further investment in the logistics sector via a pipeline of portfolio strengthening demand-aligned speculative developments.
The retail portfolio delivered commendable performance, with vacancies at their lowest level in over a decade at 3.2% (HY25: 5.7%) and like-for-like NPI growth of 6.3% (HY25: 6.1%). Successful renewals increased to 92.0% (HY: 84.4%) while rental growth entered positive territory at 1.5% (HY25: -1.2%). The portfolio value increased 0.6%, supported by non-core asset disposals, value-adding upgrades and solar installations. Recent value-unlocking projects include a taxi rank conversion at Alberton Mall in response to commuter customer demand and incorporating new anchor tenants at La Lucia Mall and Longbeach Mall.
Tenant turnover grew 2.7% with shopper footfalls growing 0.7% during the six months. Community centres led annual trading density (R/m2) growth by type at 4.1% while Western Cape shopping centres outperformed by region at 3.6%. Top-performing retail categories for trading density growth included food speciality and bottle stores at 8.7%, homeware, furniture, and interiors at 7.4% with food services next at 6.6%.
The office portfolio extended its turnaround to meaningful like-for-like NPI growth over consecutive periods from -1.0% for end-June 2024 to +9.4 for end-December 2024, +6.8% for end-June 2025, and +5.8% for the period. This positive trend shows consistent letting and disciplined cost and recovery management. Office occupancy and renewals are at their highest levels in years. Office vacancies continued to reduce to 13.7% (HY25: 15.9%). As already signalled to the market at FY25, the expiry of four large leases in the period impacted the renewal growth rate which declined from -6.9% at HY25 to -9.6%. The portfolio’s renewal success rate increased to 78.5% (HY25: 45.5%) and extended the portfolio’s weighted average lease term to 4.1 years from 3.0 years at FY25. The office portfolio printed positive valuation growth of 0.9%.
Growthpoint continues to optimise its office portfolio through disposals and developments, deliberately curating a portfolio of assets and precincts concentrated in high-demand areas to accommodate modern businesses. Progressing this strategy, it completed the net-zero carbon redevelopment at 36 Hans Strydom with Ninety One on a 15-year lease and opened the pedestrian Sandton Drive Link Bridge, a R26 million infrastructure investment that spans Sandton Drive and connects Growthpoint’s premium office building, The Place at 1 Sandton Drive, with Sandton City shopping centre.
Because it makes good commercial sense, in addition to positive impacts, sustainability is integrated across Growthpoint’s business. As an innovator in this space, Growthpoint is leading the market driving sustainability initiatives towards the goal of carbon neutrality across the portfolio by 2050.
Growthpoint’s renewable energy penetration practically doubled during the six months, increasing from 7.9% to 14.5%.Norbert Sasse, Group CEO of Growthpoint Properties
In a milestone for South Africa, Growthpoint’s 195GWh power purchase agreement (PPA) with Etana Energy, signed in 2023, began generating certified green electricity. The first renewable electrons were wheeled through the national grid from the Boston Hydroelectric Plant in the Lesotho Highlands Water Scheme, which came online in October 2025. During the period it generated 6.64GWh of renewable energy for Growthpoint, delivering green electricity with cost-saving fixed escalations to tenants at nine Growthpoint buildings as part of the innovative e-co2 solution. Including the e-co2 buildings, Growthpoint has the ability to supply twenty-one Eskom buildings with certified green electricity.
Paving the way for more renewable energy to follow, two new wind farms that will provide low-carbon energy to Growthpoint reached financial close in December 2025 and are scheduled to come online by mid-2027. The PPA with Etana Energy covers hydro, wind, and solar supply equal to 32.0% of Growthpoint’s FY23 energy consumption, being the year that it was signed.
Further scaling energy and cost savings while expanding renewable energy generation, Growthpoint has cumulatively spent R1bn on solar installations in its portfolio, with 84 plants and a PV capacity of 61.7MWp, already placing it on par with a commercial-scale renewable utility. It is on track to exceed its goal of reaching 68MWp this financial year.
Highlighting a deep commitment to certifiable sustainability impacts, three Growthpoint shopping centres achieved Level 2 Net Zero Waste certification as it continues to drive waste reduction and diversion.
Growthpoint also holds 120 green building certifications and, during the period, registered around half of its solar installations for Renewable Energy Certificates (RECs) on either the international Renewable Energy Certificate (I-REC) registry, or South Africa’s national REC registry, za RECs.
Growthpoint is also focused on driving water resilience through targeted programmes designed to cut intensity across the portfolio with projected savings of 89.3 megalitres of water over three years, while continuing to invest in water resilience infrastructure for its portfolio.
Growthpoint is a Level 1 B-BBEE contributor and invested R26m in corporate social responsibility during the six months, mainly through its flagship education projects. This social investment directly benefitted 3,077 individuals, while enterprise development initiative Property Point sustained 292 jobs.
By integrating sustainability into our business, investing in talent and deep specialist expertise to drive it, and innovating alongside like-minded partners to positively shape the environment, society and the economy, Growthpoint is transforming how real estate investment creates value for all stakeholders by advancing its ESG commitmentsNorbert Sasse, Group CEO of Growthpoint Properties
Growthpoint’s 50.0% interest in the V&A Waterfront in Cape Town increased in property value to R14.1bn. It makes up 10.7% of Growthpoint’s total asset book value and 15.7% of DIPS. Notwithstanding the Intercontinental Table Bay hotel and the Lux Mall being temporarily closed for the entire period while undergoing a redevelopment for luxury brands, the V&A still delivered a NPI increase of 1.9% above HY25.
On a like-for-like basis, NPI increased by 8.7%. Strong footfall driven by increased domestic and international tourism, an improvement in trading performance from V&A-owned hotels and cost savings from its new desalination plant underpin this growth. In December 2025 alone the V&A attracted 3m visitors, up 4.1% on December 2024. It drew 25m visitors in 2025. Vacancy across the precinct remains negligible, holding steady at 0.3%.
2025 retail sales increased by 7% reaching over R11.0bn, with December 2025 achieving a sales record of R1.4bn. The V&A’s retail densities are double the MSCI super-regional shopping centre benchmark. The retail portfolio achieved rental growth of 7.9%. Further retail upside lies ahead as Victoria Wharf’s new 3,759m² Lux Mall is now complete, with the only Burberry store in the Western Cape becoming the first to relocate and open. More international luxury brands including Louis Vuitton, Gucci and Versace will be trading in their expanded premises in the dedicated wing by September 2026.
Office NPI increased by 13.0% on the back of strong demand, near-zero vacancy, high renewal rates and renewal rental growth of 7.5%.
The marine and industrial segment saw solid performance across the board in cruise vessels visits, notwithstanding the impact of ongoing political tension in the Middle East, as well as casual berthing and charter boats.
Excluding the closure of the Intercontinental Table Bay Hotel, the V&A’s hotel NPI increased 13.7%, with 14.0% higher average daily rates. The first 203 rooms of the new Intercontinental Table Bay Hotel and public areas opened mid-December, and a further 103 rooms will be completed by April 2026.Residential vacancies remain a minimal 0.4% across 259 apartments, with a renewal success rate of 82% and an average escalation of 9%.
Growthpoint’s alternative real estate co-investment platform, GIP, is 2.8% of Growthpoint’s total asset book value and contributed 4.4% to DIPS. It includes two funds distinct from Growthpoint’s core assets.
Growthpoint Student Accommodation Holdings, operating under the Thrive Student Living brand, attracted a further 17.1% partner investment in its management company during the period, reducing Growthpoint’s stake in the management company to 80% and realising a profit of R24.7m.
Growthpoint Healthcare Property Holdings (GHPH) delivered on its expanded mandate to include aged living and hospital-linked medical consulting rooms as it continues to drive scale by acquiring Auria Senior Living and adding R3.0bn to investment property.
GIP closed the period with an increased R12.1bn of assets under management (FY5: R8.6bn), comprising R7.4bn in healthcare assets and R4.7bn in purpose-built student accommodate assets.
Growthpoint continues to optimise its international investment. On 31 December 2025, 35.8% of property assets by book value were located offshore, and 21.6% of its DIPS was generated offshore. Foreign currency income of R554.3m (HY25: R769.0m) reflected the streamlined capital structure achieved across recent periods.
GOZ, which invests in high-quality industrial and office properties in Australia, accounts for 22.8% of Growthpoint’s total assets by book value and contributed 18.9% to its DIPS. GOZ remains a core holding for Growthpoint. Australia continues to stand out as a highly attractive investment environment.
Even with growth slightly below its historical trend and interest rates that remain high, the Australian economy is expanding faster than South Africa’s. A key driver is immigration. Population inflows create a multiplier effect, reinforcing economic stability and sustaining comparatively stronger growth.
GOZ delivered a 1.1% distribution increase, from A$9.1cps in the comparable period to A$9.2cps, with the payout ratio for HY26 increasing from 75.5% for HY25 to 77.3%. However, a stronger Rand and the absence of the prior period’s special dividend to offset higher dividend withholding tax resulted in lower income received by Growthpoint from GOZ during the period of R485.4m (HY25: R533.2m).
Within GOZ’s direct property portfolio, operating fundamentals remain robust. Occupancy stands at 95.0% and the portfolio maintains a weighted average lease term of 5.6 years. Like-for-like property funds from operations increased by 5.9%.
Following a period of expansion, growth in GOZ’s fund management platform moderated. Assets under management remained broadly stable at approximately A$1.4 billion over the period.
GOZ’s operational performance is robust, its macroeconomic backdrop remains supportive, its balance sheet is strong, and it continues to provide Growthpoint with strategic exposure to a stable international growth market.Norbert Sasse, Group CEO of Growthpoint Properties
GOZ issued a FY26 FFO guidance range of A$23.0cps to A$23.6cps and distribution guidance of AUD18.4cps.
GWI, which invests in offices and mixed-use precincts in Poland and Romania where it also develops logistics parks, reflects 11.5% of Growthpoint’s total assets by book value and 2.7% of DIPS.
GWI’s balance sheet is robust and its operations performed strongly. Gearing reduced further to a low 37.0% (FY25: 38.0%) and liquidity was strong with €410.6m of cash on hand at the close of the period. In February 2026, GWI bought back €125m of unsecured bonds due in 2029, at a call price of 102%. Its next significant debt maturity is in February 2027.
GWI delivered a €5.0cps scrip dividend (R68.9m) to Growthpoint for the period ended December 2025 (HY25: €7.5cps (R129.1m) for the comparable period. Dividend scrip being issued at significant discounts to EPRA NAV, increased finance costs and a one-off €8.0m Polish income tax charge left GWI’s DPS down 33.3%.
GWI’s portfolio, which includes 37 assets in Poland and 20 in Romania, increased in value by 0.9% to €2.6bn. An impressive 99% of this value is green certified. The total portfolio vacancy increased to 15.4% (FY25: 14.1%) and like-for-like net operating income reflected a modest 1.4% decline in the face of higher inflation in Romania and Poland impacting operating expenses.
GWI continues to invest in its portfolio. Taking advantage of a window of opportunity created by its existing planning permission in Bucharest, where new development approvals are currently not being granted, and good office demand is reflected in its 94.4% let portfolio in Romania, GWI has commenced its first new office development in more than five years. Green Court D will add a further 17,200m² of state-of-the-art office space to the portfolio on completion. In Wroclaw, Poland, it completed the major refurbishment of its iconic 48,300m² Renoma mixed-use property.
Lango, which invests in prime commercial real estate assets in key gateway cities across the African continent (excluding SA), accounts for 1.5% of Growthpoint’s total assets by book value.
Strategic momentum is in place across the SA portfolio. Key metrics are improving across all three SA sectors, supported by Growthpoint’s capital recycling into higher quality assets with total SA asset sales of R3.5bn targeted for FY26.
Further expanding its logistics footprint in the Western Cape, Growthpoint made a strategic investment in the Cape Winelands Airport. In addition, it is developing the R578m Indlovu Logistics Park maxi-units of a combined 38,600m2 in Montague Gardens, Cape Town, the R392m multitenant 36,830m2 Tecoma Park in Cornubia Town, KZN, and the Grade-A Noka Park in Riverfields, which introduces high-performance space flanking OR Tambo International Airport in Gauteng.
Advancing its retail portfolio repositioning by prioritising capital allocation towards dominant centres with strong trading metrics and proven reinvestment potential, Growthpoint has commenced the R262.6m upgrade and expansion of Paarl Mall and is undertaking a R70.5m redevelopment at Walmer Park Shopping Centre in Gqeberha.
In the office sector Growthpoint has secured a firm pipeline of asset rotation, including the recently announced Discovery buildings transactions in Sandton Summit. The combined effect of disposing of the 55% share in Discovery Phase 1 and acquiring the remaining 45% share in Discovery Phase 2 supports effective capital recycling and the domestic portfolio reweighting strategy. On conclusion of the transactions, the nearly R2bn in proceeds will be used to settle debt, reducing interest costs and decreasing the SA LTV by 0.8%. The transactions will also reduce the portfolio’s overweight exposure to Sandton offices, currently 21.7%, by 2.4%. Taking 100% ownership of the P-Grade Discovery Phase 2 increases Growthpoint’s exposure to potential upside from shorter-lease, multitenant offices within its Sandton Summit precinct, in a market where rental conditions are firming. Multitenant offices also offer greater income diversification and lower letting risk.
Growthpoint’s trading and development division, which develops assets for its own balance sheet and also undertakes third-party projects, is a strategic delivery driver, developing high-quality assets that align with portfolio objectives. It is also actively delivering healthcare, student accommodation and residential developments.
Current developments include Thrive Student Living’s largest student accommodation project yet. Located on the doorstep of the University of KZN’s Howard College, Durban, it is set for completion for the 2027 academic year. Intensive and high care units are being added to GHPH’s Busamed Hillcrest and Gateway private hospitals in Durban, due to be ready in July 2026. Also underway is Olympus Sandton, in the Sandton Summit precinct, a hospitality-led residential project with Tricolt Group, featuring 527 high-end apartments in two residential towers, a boutique Marble Group hotel, an exclusive restaurant, and a street-level Pantry by Marble deli and coffee shop, among other amenities.
The V&A Waterfront is on track for double-digit growth, with profits from the disposal of the new 5 Dock Road residential apartments, which began in January 2026, with all but two of the 98 units sold. Construction is underway on 161 new built-to-rent apartments scheduled to open in 2027. The Intercontinental Table Bay Hotel refurbishment will be fully completed by April 2026, and it is expected to reach a stabilised yield in 2028. Responding to favourable office dynamics in the precinct, the V&A will commence construction of a new speculative 6,000m2 P-grade office building in the Portswood district in May 2026. A new six superyacht marina will be operational at the V&A in October 2026.
Notably, the City of Cape Town Municipal Planning Tribunal approved an additional 440,000m² of development rights, which will deliver coastal protection infrastructure for the unprotected shoreline; expanded, safe and open public coastal access with walkways, parks, boardwalks and other amenities; and extensive local economic benefits. Approval conditions include that Phase 1 allows 200 000m² of mixed-use development, including at least 110,000m² of residential development with no less than 10% affordable housing, along with a mix of hotels, offices and retail. Phase 2, adding 240,000m², requires a traffic impact assessment after Phase 1 and must have at least 50% residential space with a minimum of 10% affordable housing. Development in Granger Bay is capped at 290,000m². Environmental and coastal management approvals for Granger Bay are underway and expected by late 2027.
Growthpoint expects growth in asset management fees from GIP following the Auria acquisition, while dividend income from the underlying funds will most likely remain flat.
On the international front, geopolitical tensions continue playing out in the market. Elevated capital costs domestically and globally, continue to constrain prudent investment growth. GOZ and GWI remain operationally strong.
Growthpoint’s diversified portfolio and income, along with its strong focus on embedded sustainability, position it strongly. The clear positive momentum across the portfolio, fuelled by operational resilience and strategic execution, positions the business well for growth.Norbert Sasse, Group CEO of Growthpoint Properties
Growthpoint creates space to thrive with innovative and sustainable property solutions in environmentally friendly buildings, while improving the social and material wellbeing of individuals and communities. Growthpoint is South Africa’s largest primary JSE-listed REIT. It is an international property company invested in real estate and communities in South Africa and across the African continent, Australia and Eastern Europe. Growthpoint has been at the forefront of environmental innovation in the South African property sector, establishing green building as an accepted practice in the local commercial property sector and driving the adoption of renewable energy. Visit growthpoint.co.za for more information. Connect with Growthpoint on Facebook, LinkedIn and YouTube.
