Wrap Text
Group Audited Annual Results and Cash Dividend Declaration for the year ended 30 June 2025
Growthpoint Properties Limited
Approved as a REIT by the JSE
(Incorporated in the Republic of South Africa)
Registration number 1987/004988/06
ISIN: ZAE000179420
JSE Share code: GRT
JSE Bond issuer code: GRTI
("Growthpoint" or "the Company" or "the Group")
GROUP AUDITED ANNUAL RESULTS AND CASH DIVIDEND DECLARATION FOR THE YEAR
ENDED 30 JUNE 2025
The results for the 12 months ended 30 June 2025 (FY25), compared to the 12 months ended
30 June 2024 (FY24), are set out below:
Group highlights
• Total Group revenue, excluding Capital & Regional plc (C&R), increased by 2.2% to
R13.3bn (FY24: R13.0bn)
• Group operating profit, excluding C&R, increased by 5.5% to R8.7bn (FY24: R8.2bn)
• Distributable income increased by 3.1% to R5.0bn (FY24: R4.8bn)
• Distributable income per share (DIPS) increased by 3.1% to 146.3 cents per share (cps)
(FY24: 141.9 cps), mainly due to an improved contribution from the three South Africa
(SA) sectors, including like-for-like net property income (NPI) growth, improved negative
rent reversions in the office & retail sectors, positive renewal growth in the logistics &
industrial sector, reduced vacancies and improved expense efficiencies and recoveries
• Dividend per share increased by 6.1% to 124.3 cps (FY24: 117.1 cps) driven by the
improved SA performance and an increased payout ratio from 82.5% to 85.0%. The payout
ratio increased for the second six months to 87.5% with an average annual payout ratio
of 85.0% for FY25
• Final dividend for H2 FY25 increased by 8.6% to 63.3 cps (H2 FY24: 58.3 cps)
• Basic earnings per share increased by 329.7% to 161.10 cps (FY24: 37.49 cps)
• Basic headline earnings per share increased by 57.0% to 159.01 cps (FY24: 101.26 cps)
• SA NPI increased by 5.0% to R5.7bn (FY24: R5.4bn)
• Like-for-like NPI at the V&A Waterfront (V&A) increased 12.7%, driven by turnover rental
revenue in both the retail and hospitality sectors as a result of an increase in tourism.
Growthpoint's 50.0% share of distributable income increased by 4.5% to R810.5m (FY24:
R775.0m) after taking into account increased net finance costs on external borrowings
in line with the V&A's funding strategy
• SA REIT loan to value (LTV) for the Group improved to 40.1% (FY24: 42.3%):
- The SA LTV improved to 34.5% (FY24: 35.4%) due to lower net debt, with the proceeds
from the disposal of C&R and domestic disposals used to reduce debt
- Growthpoint Healthcare Property Holdings (RF) Limited's (GHPH) LTV remained
constant at 16.8% (FY24: 16.8%)
- Growthpoint Student Accommodation Holdings (RF) Limited's (GSAH) LTV improved
to 28.6% (FY24: 29.7%) due to a R425.0m capital raise during the year, offset by an
increase in property assets as a result of new developments
- Growthpoint Properties Australia Limited's (GOZ) LTV improved to 39.5% (FY24:
39.8%) due to lower net debt, the disposal of Dexus Industria REIT and seven
investment properties, which was offset by lower fair valuations on investment
property driven mainly by the office sector which decreased by A$204m or 7.4% on a
like-for-like basis concentrated in the Melbourne office portfolio
• Net asset value per share, based on the SA REIT definition, decreased by 1.6% to 1 988
cps (FY24: 2 020 cps), mainly driven by the disposal of C&R and asset write downs at
GOZ.
The distributable income for FY25 is composed of the following:
SA Net SA T&D(1) V&A GWI(2) GOZ C&R NRR(3) Lango(4) GIP(5) Total(6)
Rm finance Rm Rm Rm Rm Rm Rm Rm Rm Rm
cost
Rm
Revenue 8 236 264 3 781 644 1 024 13 949
Property expenses (2 540) (220) (832) (367) (322) (4 281)
Other operating expenses (434) (56) (427) (74) (64) (1 055)
Finance cost (2 823) (1 061) (110) (206) (4 200)
Dividend from equity 810 252 6 11 1 079
accounted investment
Finance and other income 92 26 11 104 17 250
Non-controlling Interest (NCI) (652) (47) (256) (955)
Amortisation of incentives 507 507
added back
Realised foreign exchange 76 5 81
gain
Trading profits & development 24 24
fees
Profit on disposal of a 2.9% 8 8
share in the GSAH Partnership
Current normal taxation (144) (18) (162)
Distributable income retained (269) (12) (281)
(including NCI's portion)
Total distributable income 5 262 (2 731) 12 810 252 1 011 62 86 11 189 4 964
(FY25)
Total distributable income 5 032 (2 754) 22 775 304 1 057 174 - -5 203 4 813
(FY24)
1 Trading and Development (T&D).
2 Globalworth Real Estate Investments Limited (GWI).
3 NewRiver REIT plc (NRR).
4 Lango Real Estate Limited (Lango).
5 Growthpoint Investment Partners (GIP), including management fees. In FY24 income from Lango Manco of R23.7m was included in GIP's
distributable income.
6 Intercompany finance costs on the convertible loan between Growthpoint and GHPH have been eliminated in the table.
Strategy and its implementation
To simplify our business, we have prioritised two core strategies:
1. Our strategy to improve the quality of the SA portfolio is focused on decreasing the
portfolio weighting of the office sector and exiting deteriorating nodes and central
business districts (CBDs) across all three sectors:
• We continue to dispose of non-core assets including assets that are high risk and do not
possess the future growth prospects that we desire:
o During the year we sold 24 properties across the three sectors for R2.3bn with a
profit on book value of R0.4m and R403.5m on cost (FY24: 17 properties sold for
R907.7m, with a loss on book value of R13.6m and profit of R86.1m on cost)
o Five properties with a value of R317.4m were held for sale at FY25 (FY24: six
properties of R580.3m)
o Since FY17 we have sold 40 office properties, mainly B and C grade, for R5.5bn.
The sector has reached the bottom of the cycle and we have seen an
improvement in the sector's key performance indicators over the last two
financial years. Five office properties were sold in FY25 for R432.3m
o 29 retail assets that were below optimum size or were in deteriorating CBDs,
have been sold for a total of R3.9bn since FY17. All shopping centres that are
deemed a long-term hold have either undergone an extensive refurbishment or
are scheduled for strategic intervention over the next three years. Five retail
properties were sold in FY25 for R946.7m
o 104 old industrial and manufacturing properties have been sold since FY17 for a
total of R3.8bn. 14 industrial properties were sold in FY25 for R968.4m
o The successful implementation is evident in the re-weighting of our domestic
portfolio's composition by value, which has shifted from 46% office at FY15 to
40% in FY25 and Industrial and Logistics which has increased from 15% to 20% over
the same period, with retail flat at 39%
• We continue to prioritise the growth of our investments in and exposure to the better-
performing logistics sector:
o R322.0m (FY24: R587.0m) was spent on developing new high-quality, modern
logistics warehouses
o The successful implementation is evident in the performance of the logistics and
industrial portfolio:
- Vacancies reduced to 4.1% at FY25 (FY24: 5.2%)
- Positive renewal growth of 0.4% and NPI like-for-like growth of 5.5% was
achieved for FY25, with average in-force escalations of 7.5%, positively
impacting the performance of the portfolio
• Our development and capital expenditure is focussed on the stronger performing Western
Cape province due to its strong property fundamentals. A total of R1.6bn development
and capital expenditure was incurred and the key projects include the redevelopment of
Bayside Mall in Table View (R161.4m), 36 Hans Strijdom in Cape Town (R176.2m), Arterial
Industrial Phase 2 in Blackheath, Bellville (R151.1m), and The Hilton Canopy Hotel at
Longkloof Studios in Gardens (R207.3m), all in Cape Town
• To reduce our reliance on the national grid and address water supply and security we
have implemented the following environmental initiatives:
o Total installed solar capacity of 61.2MWp at FY25 (FY24: 40.7MWp)
o During FY25 we completed solar installations for R146.7m (FY24: R142.0m) and
to date have spent a cumulative R1bn on 80 solar plants
o Wheeling of energy from the power purchase agreement (PPA) with Etana Energy
(Pty) Ltd is set to be in operation from October 2025, following successful testing
and commissioning of the Boston Hydro plant
o The full PPA energy value of 195GWh per annum is expected to be available to
Growthpoint by 30 June 2028
o As at reporting date, we utilise 40 registered boreholes and 162 water backup
facilities with a total storage capacity of 9 854kl.
2. Our international strategy which is focused on optimising our international investments:
• Our investment in C&R was identified as non-core given its relatively small size, the
inability to scale the business and the relatively weak state and outlook for the UK
economy. The investment was sold for R2.4bn, settled by way of R1.2bn cash and R1.2bn
worth of NRR shares. The transaction was implemented on 10 December 2024
• Subsequent to year end we have exited our 14.2% investment in NRR at 75.0 pence per
share, raising gross sales proceeds of £50.5m (R1.3bn)
• 38.0% (FY24: 42.1%) of Growthpoint's property assets by book value are located offshore;
the reduction is mainly as a result of the disposal of C&R
• 28.7% (FY24: 32.4%) of Growthpoint's DIPS is earned offshore; the reduction is
predominantly due to the disposal of C&R and the reduced dividend income received
from GWI as a result of an increased cost of debt and a one-off income tax charge of
€5.9m
• 8.9% decrease in Rand-equivalent foreign currency income, via cash and scrip dividend
alternatives, of R1.4bn (FY24: R1.6bn).
Liquidity and capital management
We remain focused on liquidity and balance sheet strength enabling us to pursue our strategic
initiatives:
• R4.7bn (FY24: R6.2bn) unutilised committed funding facilities for SA
• R878.9m (FY24: R174.5m) cash balance on the SA balance sheet
• R744.6m (FY24: R842.3m) cash retained, before income tax, as a result of the 85.0%
dividend pay-out ratio (FY24: 82.5%)
• Group LTV improved to 40.1% (FY24: 42.3%)
• The SA LTV remained conservative at 34.5% (FY24: 35.4%) with ample debt headroom
• Group interest cover ratio (ICR) increased marginally to 2.5 times (FY24: 2.4 times) with
RSA ICR being conservative at 2.9 times (FY24: 2.8 times)
• 72.7% (FY24: 78.9%) of the SA long-term interest-bearing borrowings are hedged.
SA performance
• Office like-for-like net property income grew by 6.8% (FY24: -1.0%), Logistics & Industrial
5.5% (FY24: 2.6%) and Retail 5.3% (FY24: 4.1%). Total like-for-like net property income
growth for the three sectors at 5.9% (FY24: 1.8%) as a result of gross property income
growth of 4.1% and like-for-like property expenses increasing marginally by 0.1%
• Gross lettable area (GLA) of 1 013 534m² was let during FY25 resulting in reduced
vacancies of 8.2% (FY24: 8.7%), which are at the lowest levels since FY19
• Logistics and Industrial sector showed positive renewal growth of 0.4% (FY24: -3.3%)
while negative rent reversions on renewals for the three sectors combined for FY25
improved significantly to -0.9% (FY24: -6.0%).
Growthpoint Investment Partners (GIP) performance
• GIP's AUM decreased to R8.6bn (FY24: R18.0bn), as a result of Lango no longer forming
part of the GIP portfolio:
o GHPH AUM increased to R4.2bn (FY24: R4.0bn)
o GSAH AUM increased to R4.4bn (FY24: R3.6bn)
• The investment in Lango was reclassified as an offshore investment as Lango has
internalised its asset management function during the year and as such it no longer forms
part of GIP
• Growthpoint received gross management fees of R98.7m (FY24: R84.3m) from GHPH and
GSAH
• Dividends received from GHPH and GSAH decreased to R119.9m (FY24: R122.7m), mainly
due to negative rent reversions and elevated arrears in GHPH, partially offset by the
positive impact of the development of five properties and improved rentals per bed
received from NSFAS in GSAH.
Prospects
Despite a further decline in the Business Confidence Index (BCI) in the third quarter of 2025, as
reported by RMB/BER BCI on 3 September 2025, several positive local developments have
supported our operational performance. These include the reduction of load shedding impacting
our portfolio and a favourable interest rate outlook.
The South African Reserve Bank has lowered the repo rate by a cumulative 125 basis points since
FY24, following a marked drop in inflation to 3.0% at FY25 (FY24: 5.1%), providing a more
supportive backdrop for the property sector. The Reserve Bank of Australia has also reduced its
cash rate by a total of 75 basis points since December 2024.
Growthpoint enters FY26 with optimism, despite the fragile domestic political climate and
geopolitical uncertainty.
Our strategic priorities remain firmly anchored in maintaining balance sheet strength and
advancing our environmental, social, and governance (ESG) commitments. In South Africa, we
will continue to enhance the quality of our portfolio through disciplined capital allocation,
proactive tenant retention, strategic asset repositioning, and the acceleration of green building
and renewable energy initiatives. We are also placing increased emphasis on sectors and regions
demonstrating higher growth potential, as well as reducing costs.
In the SA portfolio, the office sector has stabilised and is outperforming in Cape Town and
Umhlanga Ridge in KwaZulu-Natal, with Cape Town achieving positive renewal growth, however,
there are significant office leases that were renewed post year end with negative reversions that
will have an impact on the sectors FY26 renewal growth rate. The Gauteng office portfolio
remains under pressure due to oversupply, with higher vacancy levels and negative reversions
compared to other regions. The logistics and industrial sector, benefiting from a more balanced
supply-demand dynamic, is expected to continue to outperform other sectors. KwaZulu-Natal
and the Western Cape are expected to continue to deliver superior performance. In FY25, our
retail portfolio's trading density growth outpaced both inflation and the Clur Index (for all
shopping centres), and we anticipate this positive momentum will continue.
The V&A's performance once again exceeded expectations for FY25, driven by increased
domestic and international tourism. This momentum is expected to continue in FY26 with the
V&A anticipating double-digit earnings growth, supported by the development profits which will
be generated on residential sales from 5 Dock Road, despite the redevelopment of the Lux Mall,
which commenced in July 2024, and the Table Bay Hotel which closed for operations from
February 2025, which will impact FY26 performance. Both redevelopments are scheduled to
open towards December 2025.
International expansion is constrained by our high cost of capital, both domestically and
offshore, and our commitment to maintaining balance sheet strength.
For FY26, GOZ remains focused on driving growth through its funds management platform,
enhancing leasing outcomes via strategic capital expenditure and active customer engagement,
and positioning metro office assets for recovery amid improving market fundamentals.
Capitalisation rates and valuations are stabilising in Australia. GOZ issued Funds from Operations
(FFO) guidance of A$22.8 - 23.6 cps and distribution guidance of A$18.4 cps, reflecting a targeted
payout ratio of between 75.0% and 85.0%. No acquisitions or disposals of direct investment
properties are assumed in this guidance.
GWI continues to maintain a prudent financial position with moderate leverage and high levels
of liquidity. GWI's decision to pay a cash dividend for their H1 2025 is attributed to enhanced
liquidity and compliance with its debt covenant obligations. Progress is being made with
constructive discussions amongst the shareholders in respect of the future strategy for the
company.
Asset valuations and LTV ratios have stabilised, and we will continue to execute strategic
initiatives aimed at preserving liquidity and creating long-term balance sheet strength.
Our diversified portfolio and income streams position us favourably for FY26. Our domestic
portfolio's improving performance driven by strengthening property fundamentals, continued
outperformance by the V&A, GOZ's strong operational fundamentals and reduced interest rates
indicate that the property cycle has entered a growth phase. We expect DIPS for FY26 to grow
by between 3.0% and 5.0% notwithstanding ongoing interest rate uncertainty and DPS growth of
between 6.0% and 8.0%, with a further increase in the payout ratio to 87.5% for FY26.
This announcement contains certain forward-looking statements which relate to the possible
future performance and financial position of the Group. All forward looking statements are solely
based on the views and considerations of the Board of Directors. These statements involve risk
and uncertainty as they relate to events and depend on circumstances that may or may not occur
in the future. The Group does not undertake to update or revise any of these forward-looking
statements publicly, whether to reflect new information, future events or otherwise. These
forward-looking statements have not been reviewed or reported on by the Group's external
auditor.
Regulatory requirements
The annual financial statements were audited by Ernst & Young Inc., who expressed an
unmodified opinion thereon. The auditor did not report on any of the information contained in
this announcement.
This short form announcement is the responsibility of the Board of Directors and does not contain
full or complete details. Any investment decisions by investors and/or shareholders should be
based as a whole on consideration of the Group consolidated financial statements which may be
downloaded from the Company's website.
https://growthpoint.co.za/financialreporting/ and
https://senspdf.jse.co.za/documents/2025/jse/isse/GRTE/Final25.pdf
Final dividend
Notice is hereby given of the declaration of the final dividend number 79 of 63.30000 cps for the
six months and year ended 30 June 2025 (FY25). The dividend has been declared from income
reserves.
Other information:
• Issued shares as at declaration date: 3 430 787 066 ordinary shares of no par value
• Income Tax Reference Number of Growthpoint: 9375077717
Shareholders are advised that the dividend meets the requirements of a "qualifying distribution"
for the purposes of section 25BB of the Income Tax Act, No 58 of 1962 (Income Tax Act). The
dividends on the shares will be taxable dividends for South African tax purposes in terms of
section 25BB of the Income Tax Act.
Tax implications for South African resident shareholders
Dividends received by or accrued to South African tax residents must be included in the gross
income of such shareholders and will not be exempt from income tax in terms of the exclusion
to the general dividend exemption contained in section 10(1)(k)(i)(aa) of the Income Tax Act
because they are dividends distributed by a REIT. These dividends are, however, exempt from
dividend withholding tax (dividend tax) in the hands of South African resident shareholders
provided that the South African resident shareholders have provided to the Central Securities
Depository Participant (CSDP) or broker, as the case may be, in respect of uncertificated shares,
or the company, in respect of certificated shares, a DTD(EX) form (dividend tax: declaration and
undertaking to be made by the beneficial owner of a share) to prove their status as South African
residents. If resident shareholders have not submitted the above mentioned documentation to
confirm their status as South African residents, they are advised to contact their CSDP or broker,
as the case may be, to arrange for the documents to be submitted before the dividend payment.
Tax implications for non-resident shareholders
Dividends received by non-resident shareholders from a REIT will not be taxable as income and
instead will be treated as ordinary dividends which are exempt from income tax in terms of the
general dividend exemption section 10(1)(k) of the Income Tax Act. Any dividend received by a
non-resident from a REIT is subject to dividend tax at 20.0%, unless the rate is reduced in terms
of any applicable agreement for the avoidance of double taxation (DTA) between SA and the
country of residence of the non-resident shareholder. Assuming dividend tax will be withheld at
a rate of 20.0%, the net amount due to non-resident shareholders is 50.64000 cps. A reduced
dividend withholding tax rate in terms of the applicable DTA may only be relied on if the non-
resident shareholder has provided the following forms to their CSDP or broker, as the case may
be, in respect of uncertificated shares, or the company, in respect of certificated shares:
• A declaration that the dividend is subject to a reduced rate as a result of the application
of the DTA
• A written undertaking to inform the CSDP, broker or the company, as the case may be,
should the circumstances affecting the reduced rate change or the beneficial owner
cease to be the beneficial owner, both in the form prescribed by the Commissioner of
the South African Revenue Service. If applicable, non-resident shareholders are advised
to contact the CSDP, broker or the company to arrange for the above mentioned
documents to be submitted before dividend payment, if such documents have not
already been submitted.
Salient dates and times
Last day to trade (LDT) cum dividend Tuesday, 14 October 2025
Shares to trade ex dividend Wednesday, 15 October 2025
Record date Friday, 17 October 2025
Payment date Monday, 20 October 2025
Notes:
1. Shares may not be dematerialised or rematerialised between the commencement of
trade on Wednesday, 15 October 2025 and the close of trade on Friday, 17 October 2025,
both days inclusive.
2. The above dates and times are subject to change. Any changes will be released on SENS.
Claim it Campaign
Shareholders are reminded to claim any unpaid or unclaimed dividends they may be entitled to.
As part of our ongoing commitment to enhancing shareholder communication and engagement,
we are participating in the market-wide "Claim It" campaign, which aims to assist shareholders
in recovering outstanding dividend payments.
For more information, or to check for any unclaimed entitlements, shareholders can visit the
Claim-It portal at https://www.jse.co.za/claimit. Shareholders are required to complete the
online application on the website. If they are unable to do so, they may contact JSE Investor
Services (Pty) Limited on 0861 472 644 for assistance.
Sandton
10 September 2025
Equity sponsor: Investec Bank Limited
Debt sponsor: Investec Bank Limited
Date: 10-09-2025 07:05:00
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