Growthpoint posts $403 million revenue, boosts half-year dividend

Growthpoint Properties Limited, the Johannesburg-listed real estate investment trust (REIT), reported revenue of R6.66 billion ($403.3 million) for the six months ended Dec. 31, 2025, supported by improved occupancy levels and resilient demand across its South African commercial property portfolio.

The property group led by Norbert Sasse, with total property assets reaching R157.5 billion ($9.55 billion), also declared an interim dividend of R0.66 ($0.04) per share, representing an 8.5% increase from the same period a year earlier. Growthpoint said stronger leasing activity, successful redevelopments and stable retail performance helped drive earnings growth while vacancies fell to their lowest level since 2019.

South Africa portfolio drives earnings growth
Growthpoint’s South African property portfolio, its largest earnings contributor, generated R4.2 billion ($254.55 million) in revenue during the period, up 2.2% year-on-year.

The company attributed the improvement to reduced vacancies, strong tenant renewals and upgrades across key assets, including Arterial Industrial Estate, Bayside Mall, Beacon Bay and the Hilton Canopy Hotel.

Net property income growth was recorded across all core segments, with the Office segment by 5.8%, logistics and industrial by 5.6%, while the retail segment rose by 6.3%. Overall, like-for-like net property income increased 6%, reflecting improved operational performance. However, vacancy levels declined to 7.2%, the lowest level recorded since 2019.

V&A Waterfront and offshore investments
Growthpoint’s V&A Waterfront investment, one of South Africa’s premier mixed-use developments, delivered 8.7% like-for-like net property income growth, supported by stronger tourism and improved retail and hospitality trading.

The company’s share of distributable income from the asset increased to R403.1 million ($24.45 million). International investments delivered mixed results. Distributions from Growthpoint Properties Australia (GOZ) rose slightly to AUD 0.092 per share, while income from Growthpoint Western Europe (GWI) declined due to higher financing costs and tax pressures.

Strategic acquisitions and capital management
Growthpoint Investment Partners (GIP) strengthened the portfolio with the R1.2 billion ($73 million) acquisition of Auria Senior Living, increasing assets under management to R12.1 billion ($741 million).

The group maintained disciplined liquidity and leverage management, with a group LTV of 40.8% and an interest cover ratio of 2.7 times. Capital expenditure of R545.4 million ($33.06 million) focused on redevelopments in Cape Town, Durban, and Western Cape logistics assets, while renewable energy initiatives expanded installed solar capacity to 61.7 MWp, with renewable energy accounting for 14.5% of total consumption.

Outlook, Executive changes and dividend details
Despite global macroeconomic uncertainties and structural challenges in South Africa, Growthpoint expects distributable income per share (DIPS) growth of 3–5% and dividend growth of 6–8% for FY26, reflecting the company’s commitment to portfolio quality, tenant retention, strategic asset repositioning, and ESG initiatives.

The Intercontinental Table Bay Hotel refurbishment will be completed by April 2026, contributing to long-term yield growth. José Snyders joined as Group CFO on January 1 2026, succeeding Gerald Völkel, who will retire on March 31, 2026, after a distinguished tenure.

The interim dividend of 66.2 cps will be paid on April 20 2026, with the record date on April 17 2026. Growthpoint continues to leverage its diversified domestic and offshore portfolio, strategic acquisitions, and sustainable initiatives to deliver steady growth and long-term shareholder value.