Wrap Text
Investor Update for the three months ended 30 September 2025 and Changes to the Property & Investment Committee
Growthpoint Properties Limited
Approved as a REIT by the JSE
Incorporated in the Republic of South Africa
Registration number 1987/004988/06
Share code: GRT ISIN: ZAE000179420
JSE Bond issuer code: GRTI
"Growthpoint" or the "Company"
INVESTOR UPDATE FOR THE THREE MONTHS ENDED 30 SEPTEMBER 2025 AND CHANGES TO THE PROPERTY & INVESTMENT COMMITTEE
We are pleased to present our trading update for the three months from 1 July 2025 to 30 September 2025 (Q1).
STRATEGY IMPLEMENTATION
We remain focused on our two core strategies:
- Our South African portfolio strategy aims to improve quality through targeted disposals and investments.
We set an asset disposal target (including Trading & Development (T&D)) of R3.5bn for the year ending 30 June
2026 (FY26) focused on reducing our exposure to the office sector, particularly B grade offices, disposing of older
industrial and manufacturing assets and exiting non-core retail properties in deteriorating central business
districts (CBDs), as well as smaller retail assets.
For FY26, we are targeting an investment of approximately R1.3bn in our core portfolio, excluding Growthpoint
Investment Partners (GIP). This capital will be deployed through active asset management initiatives to preserve
and enhance the value of our portfolio. This includes developing high-quality assets, notably modern logistics
warehouses for our logistics and industrial portfolio, bringing land to account with the Olympus residential
development, retail upgrades and advancing sustainability initiatives across all three property sectors as we
progress towards carbon neutrality by 2050. We are also focusing on increased investments in the Western Cape,
particularly in the logistics and retail sectors. Our focus on cost management continues.
We continue to grow assets under management (AUM) and generate diversified returns through GIP and our T&D
business unit. The V&A Waterfront is predicted to achieve significant growth in the next three to five years with
a strong development pipeline.
- Our international strategy is focused on optimising our international investments through capital allocation
to our core investments and rotating away from non-core ones.
We remain committed to enhancing our core investment in Growthpoint Properties Australia Limited (GOZ),
primarily through supporting its capital light strategy and accordingly, support management's plans to grow the
Growthpoint Australia Logistics Partnership (GALP), as well as other initiatives and transactions aimed at growing
funds under management.
At Globalworth Real Estate Investments Ltd (GWI) the major shareholders continue to have constructive
discussions with the aim of unlocking shareholder value.
CAPITAL ALLOCATION
Our capital allocation is disciplined with targeted capital and development expenditure funded through cash retained
from the 12.5% (FY25:15.0%) dividend retention ratio and proceeds from disposals. During Q1, we sold and transferred
eight non-core assets for R391.6m, at a slight discount of R1.6m to book value. With an additional four properties worth
R270.4m already transferred since 1 October 2025, and a further R3.0bn in sales of non-core assets expected by 30 June
2026, we expect to deliver R3.6bn in disposals for FY26, surpassing our R3.5bn target. We have also identified high risk
core assets for potential disposal given their future risk profile.
We incurred R249.2m of development and capital expenditure for the SA portfolio (including T&D) during Q1. The largest
projects are the redevelopment of 36 Hans Strijdom Avenue, Cape town (R71.5m) La Lucia Mall, Durban (R24.3m),
Longbeach Mall, Noordhoek, Cape Town (R17.6m), Beacon Bay Retail Park, East London (R16.1m) and Alberton City,
Johannesburg (R10.8m). Considering the low SA Loan to value ratio (LTV), reduced debt levels and lower cost of capital,
we are evaluating a number of strategic acquisitions and developments aligned to our strategy to improve the quality of
the portfolio as highlighted above.
SOUTH AFRICAN PORTFOLIO
Our property key performance indicators (KPIs) continue to show pleasing improvements across all three sectors.
Vacancies improved from 8.2% at 30 June 2025 (FY25) to 7.4%, the lowest since June 2019. The decrease was driven
primarily by new lettings in the office and logistics & industrial sectors. During Q1 a total of 338 928m² of space was let,
comprising 234 970m² of renewals and 103 958m² of new lets.
During Q1 our overall SA renewal rental growth rate declined from -0.9% at FY25 to -6.0%, driven primarily by significant
office lease renewals that resulted in negative reversions. However, our lease renewal success rate improved
substantially, rising from 68.2% at FY25 to 82.1%, the highest level in over a decade. All three sectors recorded
improvements, with the office sector showing the most notable improvement.
The weighted average lease expiry (WALE) on renewals improved marginally to 3.8 years, from the 3.5 years achieved
at the end of FY25. Rental escalations on renewal decreased slightly from 6.9% at FY25 to 6.7%.
Property portfolio KPIs
Retail Office Logistics & Industrial Total FY25 HY25
Sep-25 Jun-25 Dec-24 Sep-25 Jun-25 Dec-24 Sep-25 Jun-25 Dec-24 Sep-25 Jun-25 Dec-24
Vacancy (%) 4.6 5.3 5.7 14.6 14.6 15.9 2.5 4.1 3.5 7.4 8.2 8.3
Renewal
87.6 86.6 84.4 81.5 57.5 45.5 79.8 64.7 71.7 82.1 68.2 68.8
success rate (%)
Weighted
average
2.4 -0.3 -1.2 -11.4 -3.2 -6.9 -1.7 0.4 0.9 -6.0 -0.9 -1.8
renewal growth
rate (%)
WALE (years) 3.7 4.5 4.8 4.2 3.0 3.0 4.2 3.0 3.0 3.8 3.5 3.6
Weighted
average future
6.1 6.3 6.4 6.6 7.5 7.5 7.5 7.5 7.5 6.7 6.9 6.9
escalations on
renewals (%)
Total arrears
27.7 23.9 32.8 29.5 29.8 40.5 17.3 15.1 19.5 74.5 70.2 92.8
(Rm)
YTD Disposals
- 946.7 304.4 126.0 432.3 104.3 265.6 968.4 180.7 391.6 2 347.4 589.4
(Rm)
YTD Disposals
(Number of - 5 3 3 5 2 5 14 7 8 24 12
properties)
Retail sector
Our retail fundamentals remain robust, supported by healthy trading metrics and disciplined portfolio management.
Compared to R35 257/m² trading density recorded for the year ended 30 September 2024, our annual average trading
density increased to R37 020/m², representing a growth rate of 5.0%, an increase from 3.0% in the prior year. Footfalls
grew 3.0% year-on-year (FY25:1.1%), and the rent-to-turnover ratio remains sustainable at 7.7%. In Q1, trading density
growth improved 4.2% (FY25-Q1: 2.8%), with community centres outperforming regional malls, posting an annual trading
density of R57 909/m² (FY25: R54 222/m²). Gauteng and the Western Cape delivered trading density growth of 5.5%
(FY25: 1.6%) and 5.2% (FY25: 4.7%), respectively.
Vacancies decreased to 4.6%, the lowest level since June 2019, following the conversion of an 8,566m² area at Alberton
City into a taxi rank as part of our strategy to position the mall for commuters. This conversion reduced both Gross
Lettable Area (GLA) and vacancies. We expect vacancies to decrease further by June 2026, supported by planned
disposals and new lettings.
The renewal growth rate improved significantly from -0.3% at FY25 to 2.4%, with 74.5% of leases that renewed in Q1 by
GLA, in flat to positive territory. The improvement was supported by major renewals at N1 City Mall, Goodwood, Cape
Town and Longbeach Mall, Noordhoek, Cape Town. Based on current trends, we anticipate renewal growth to remain
positive through FY26, although we remain cautious given ongoing pressure in the apparel sector.
The renewal success rate strengthened to 87.6%, the highest since June 2016, with the Western Cape delivering a notable
improvement to 98.2%.
Key redevelopment projects are progressing as planned, including Checkers at La Lucia Mall, Durban and Shoprite at
Alberton City, Johannesburg, both scheduled for completion in December 2025. The Builders Express redevelopment at
Longbeach Mall, Noordhoek, Cape Town is expected to be completed by April 2026, and the reconfiguration of Food
Lovers Market by December 2025. We sold Waterfall Value Centre in Rustenburg for R118.0m in October 2025, which
aligns with our strategy to optimise the portfolio by exiting smaller, non-core assets and we expect to sell a further four
properties worth R1.1bn by June 2026.
Our ESG initiatives continue to advance, with solar photovoltaic (PV) installations totalling 5.36MWp planned across four
retail properties, targeted for completion by June 2026. Keywest Shopping Centre, Krugersdorp, Woodmead Retail Park,
Woodmead and Waterfall Mall, Rustenburg have successfully achieved Net Zero Waste certification.
Data-driven decision-making remains central to optimising tenant mix and enhancing customer engagement across our
retail portfolio. In 2026, we will continue leveraging advanced analytics, including Wi-Fi insights, mobile location data,
and credit spend analysis, to inform leasing strategies and improve shopper experience. We are enhancing customer
experience and deepening our analytical capabilities with the installation of free Wi-Fi in five additional centres: La
Lucia Mall, The Constantia Village, N1 City Mall, Walmer Park Shopping Centre and Festival Mall. By fully adopting the
CLUR Index for detailed trading density analytics and heat maps for all our retail centers, we are now better positioned
to capture new revenue opportunities and deliver a seamless, tech-enabled customer journey.
Office sector
Our focus remains on unlocking long-term value through precinct development, sustainability initiatives, and a strategic
disposal programme.
Our occupancy levels remain stable, and the renewal success rate continues to increase despite ongoing pressure on
rental reversions, as strategic lease structuring supports retention of key tenants.
National market data (MSCI SA Index June 2025) reported office vacancies at 15.5% at the end of June 2025. Our vacancies
remained unchanged from FY25 at 14.6%, reflecting stability despite regional fluctuations. The Western Cape recorded
a notable improvement following successful letting with vacancies improving from 5.4% at FY25 to 3.3%, while Gauteng
increased from 18.5% at FY25 to 19.2% and KwaZulu-Natal from 0.7% to 1.3%. For FY26, our vacancies are projected to
remain broadly stable, despite a marginal increase in December 2025, given a number of large tenant exits that are
likely to occur.
Renewal rental growth remains negative at 11.4%, driven by strategic concessions on large renewals with longer lease
terms secured albeit with lower escalation rates. Renewal growth for FY26 is expected to improve moderately. Renewal
success rates improved from 57.5% to 81.5%, supported by proactive engagement.
Weighted average lease periods on renewals increased significantly, influenced by long-term commitments from major
tenants in the Western Cape and Johannesburg which have lifted the portfolio WALE of those leases renewed from 3.0
years to 4.2 years, though this is concentrated in a handful of strategic deals rather than a broad-based trend.
Development capital expenditure remains focused on high-potential, ESG-aligned properties in strategic locations. The
redevelopment of 36 Hans Strijdom, CBD, Cape Town is nearing completion, albeit behind schedule, with practical
completion now expected by late November 2025. The foreshore precinct in Cape Town represents a strategic mixed-
use joint venture opportunity with Southern Sun. In October 2025, we acquired a property adjacent to Longkloof Studios
in Gardens, Cape Town for R49.0 million, further reinforcing our long-term precinct development strategy.
Ongoing disposals are enhancing portfolio quality and redirecting capital to higher-growth nodes with better long-term
prospects. During the quarter we sold and transferred:
- 70 Grayston, Sandton, Johannesburg for R40.0m. Albeit an A grade asset, it was deemed non-core given its
location in lower Sandton,
- The Oval, Bryanston, Johannesburg in a non-core business node for R73.0m, and
- Arnold Crescent, Rosebank, Johannesburg for R13.0m.
We expect to sell a further 10 properties worth R960.7m by end of June 2026.
On ESG, the rollout of the e-CO2 wheeling programme has commenced, with initial allocations implemented across 10
Sandton buildings. This initiative provides green energy to our tenants, with tradeable renewable energy certificates
(RECs). By offering lower energy escalations, we are effectively reducing their cost of occupancy. In turn, this initiative
is designed to increase tenant retention.
Logistics & Industrial sector
Our long-term strategic objective remains firmly centred on building a premium logistics portfolio, anchored with high-
quality logistics warehouses and distribution facilities. The strategy focuses on rebalancing the industrial portfolio by
region and asset type to improve both asset-level and portfolio performance. This includes proactive asset management,
disposing of non-core properties that no longer meet our investment criteria and increasing the sector's weighting within
the SA portfolio by growing our footprint in the coastal regions.
The portfolio delivered a strong performance in Q1, marked by a significant reduction in vacancies and continued
progress on strategic disposals and developments. Vacancies improved from 4.1% at FY25 to 2.5%, the lowest level in
over a decade, driven by successful new lettings. Regionally, the Western Cape improved from 3.4% to 2.3%, Gauteng
from 5.9% to 3.4%, while KwaZulu-Natal remained stable at a low 0.5%. Several long-standing vacancies are being actively
addressed, with properties earmarked for disposal, and redevelopment opportunities under consideration. Looking
ahead, vacancies are expected to reduce marginally by June 2026.
The renewal success rate showed a notable improvement, rising from 64.7% to 79.8%, reflecting stronger tenant
retention, particularly in Gauteng and KwaZulu-Natal. While the overall renewal growth rate declined from 0.4% to
-1.7% due to two significant lease renewals in Gauteng and KwaZulu-Natal, our performance remains resilient. A strong
59.7% of renewals by GLA were flat or positive, with Cape Town delivering a robust 7.7% growth, indicating strong
underlying market fundamentals in key regions. The outlook for the overall portfolio remains optimistic, with
expectations to return to growth by June 2026, supported by favourable market dynamics in the Western Cape and
stabilising vacancies in Johannesburg.
The weighted average lease period on renewals has strengthened, increasing from 3.0 years at FY25 to 4.2 years. This
aligns with the strategy to secure longer lease terms, enhancing income stability.
Capital expenditure is being directed toward strategic developments, including Chain Avenue Phase 2 in Montague
Gardens, Cape Town, Noka Park in Riverfields, Johannesburg and a large land acquisition at Cornubia Industrial Park,
KwaZulu-Natal, which will add 36 000m² of GLA by November 2026. These developments are expected to support future
growth and portfolio quality.
Disposals remain a key part of the capital recycling strategy, with five old industrial manufacturing properties sold during
Q1 for a combined R265.6m. Three additional properties transferred post Q1 for R152.5m, and a further nine properties
are expected to transfer by June 2026, generating R861.1m. These disposals are aligned with our strategy to exit non-
core assets and enhance the overall quality and growth potential of the portfolio.
T&D
Our T&D team continues to improve the quality of our portfolio through ongoing developments and refurbishments, as
well as developing assets for Growthpoint Student Accommodation Holdings (RF) Limited (GSAH) and Growthpoint
Healthcare Property Holdings (RF) Limited (GHPH).
We entered a strategic partnership with Cape Winelands Airport to co-develop and manage a 450-hectare mixed-use
aviation precinct in the Western Cape. We will earn fees for the oversight of the Phase 1 development (estimated at
R8bn), non-exclusive development management of future phases (R16bn – R20bn), and property and asset management
fees across the precinct, excluding the terminal buildings. Construction is expected to commence in 2026, subject to
approvals, with commissioning targeted for 2028. This partnership aligns with Growthpoint's strategy to invest in high-
quality precincts and advance sustainability objectives.
Two sectional-title industrial redevelopments in Pinetown were completed in FY25. At Devro Park, 8 of the 16 units were
sold, and at Palm River, 18 of the 20 units were sold, generating total sales to date of R66.8m, of which R1.8m was
realised in Q1 This delivered a total profit of R17.5m, including R0.4m in Q1. We expect to realise additional profits of
R3.3m by 30 June 2026.
The residential conversion of the Riverwoods office building in Bedfordview into the BlackBrick Bedford Urban Resort
generated total sale proceeds of R144.9m realising a total profit of R20.0m. At the end of September 2025 62% of the
units had been sold with R2.0m of the profit realised in Q1 FY26. We expect R3.2m in further profits by the end of June
2026.
Completion of the Sandton link bridge is anticipated by 10 December 2025. The bridge connects The Place, Sandton to
the parking area at Sandton City, improving accessibility and convenience for tenants.
The Olympus residential development in Sandton, in partnership with a residential developer Tricolt (a 50% stake each),
is progressing well. All approvals have been secured except for the final consent from the Johannesburg Road Agency,
which is expected shortly. Early works commenced in November 2025, with the main contractor appointment imminent
and full site works scheduled for January 2026. Pre-sales on Tower 1 have reached 73% bankable sales, reflecting strong
market demand. The first phase will deliver Tower 1 and the podium level, with overall completion targeted for February
2028. Olympus is designed to achieve a minimum four-star Green Star rating and exemplifies Growthpoint's strategy of
unlocking value through prime land holdings and sustainable, mixed-use precinct development.
V&A Waterfront (V&A)
Performance continues to be impacted by the decommissioning and redevelopment of The Table Bay Hotel. Earnings
before interest and tax (EBIT) grew by 5% compared to the same three months in 2024. Like for like EBIT growth was
16.0%. This growth was underpinned by an 8% increase in retail sales, which boosted turnover-based rental income,
alongside strong performances from hotels under operating agreement.
Tourism growth remained steady over Q1, with international and domestic passenger arrivals at Cape Town International
Airport increasing by 5%.
Hotel demand remained robust, supported by tourism and events. Average daily rates increased by 16% compared to the
same period last year.
The office portfolio continued to perform strongly, with zero vacancies and sustained demand contributing positively.
The marine & industrial sector also saw improvement, driven by increased demand for casual berths.
Significant investment in the precinct continued during the period, with several key projects advancing:
- The desalination plant was successfully commissioned and has been operational since mid-March 2025,
generating 3.3kl of water per day,
- Development on the 3 759m² new luxury wing in the Victoria Wharf is well advanced, with completion expected
in December 2025 and phased occupation thereafter,
- The Table Bay Hotel is on track to reopen as an InterContinental Hotel in a phased manner from December 2025,
- Development of the Quay 7 luxury hotel, comprising 142 keys, is well progressed to complete by June 2026, and
- Construction of the 5 Dock Road residential apartments with completion expected in January 2026. The strong
demand is reflected in the 98% presales already achieved, with development profits anticipated in the second
half of FY26.
The development pipeline is being funded through third-party bank funding. As at 30 September 2025, the V&A had total
debt of R4.2bn (FY25: R3.3bn), including R710m (FY25: R290m) in revolving credit facilities. The company increased its
variable debt to R3.3bn (FY25: R2.8bn) but improved its risk management position with 70% of that debt now hedged
(FY25: 64%). Fixed rate debt decreased to R179m (FY25: R192m), and the average variable interest rate decreased
slightly to 8.4% (FY25: 8.7%). The undrawn facilities increased to R1.5bn (FY25: R0.6bn). During Q1, a R250 million
revolving credit facility expired and was successfully refinanced. An additional R1.5bn in debt was raised, increasing
total third-party debt facilities to R5.5bn.
Excluding residential sales, EBIT for FY26 is expected to be marginally higher than the previous year, primarily driven by
strong trading performance in the retail and hospitality sectors, which continue to benefit from increased international
tourism. Adjusting for the temporary loss of income from the Table Bay Hotel (R51.0m in FY25 and R16.1m in FY26) and
the Luxury mall (R11.5m in FY25 and R5.7m in FY26), underlying operational performance remains robust.
The inclusion of third-party funding has introduced a short-term drag on distributions, primarily due to the timing gap
between capital investment and the returns expected from the associated developments. However, when factoring in
the proceeds from residential sales, we anticipate double-digit growth in distributions for FY26.
GIP
With c. R8.7bn of gross AUM across GHPH and GSAH, GIP has its own dedicated fund managers and staff who execute our
co-investment philosophy.
Growthpoint receives dividend income from its equity holdings in the underlying funds and aims to maintain ownership
of 15% to 20%. Through investment in our management entities, we generate two key income streams: asset management
fees from both funds and property management fees from GHPH. Combined, these fees contribute approximatively
R200m gross (before the dedicated team's expenses) annually to our distributable income.
GSAH's development of Howard College, Durban (2 400 beds) for R790.0m is expected to be completed for the 2027
academic year. Leasing of the portfolio's properties for the 2026 academic year is progressing well, with the portfolio
currently 44.0% let.
GHPH has entered into an agreement to acquire the properties and operations of Auria Senior Living, a leading developer
and operator of senior living communities in South Africa - the transaction remains subject to regulatory approvals. This
strategic acquisition marks GHPH's formal entry into the senior living sector and will initially add four high-quality
communities to its portfolio, with gross property assets valued at R2.4bn (including minority interests but before
accounting for the life rights liability).
The development of a R100.0m primary healthcare and day hospital facility in Melrose, Johannesburg is scheduled for
completion in January 2026. Expansion projects are also underway at Hillcrest Hospital and Gateway Hospital in KwaZulu
Natal.
INTERNATIONAL PORTFOLIO
GOZ published their Q1 update for FY26 on 6 November 2025. GOZ has delivered a solid start to FY26, demonstrating
continued momentum and disciplined execution of its strategic pillars.
Strategic growth continues through the expansion of the GALP, with a contract exchanged for the purchase of an
AUD$24m industrial asset in Bundamba, Queensland (settlement is expected prior to 31 December 2025, subject to
Foreign Investment Review Board (FIRB) approval).
Lango Real Estate Limited (Lango) is contractually required to list on a recognised exchange and is targeting a London
Stock Exchange listing for which a detailed roadmap has been developed, outlining the necessary regulatory requirements
and processes which is being continuously reviewed and refined.
GOZ and GWI are listed separately and have each published their latest market updates and announcements. We refer
you to these publications for more detail.
TREASURY AND CAPITAL MANAGEMENT
Growthpoint continues to benefit from strong access to liquidity, securing capital at tight spreads. This is evidenced by
sustained demand from both banks and bond investors.
As at 30 September 2025, total nominal gross South African debt reduced to R37.8bn from R39.1bn at FY25. This reduction
was primarily driven by the repayment of R996m in previously utilised facilities, the repayment of a EUR45m loan with
proceeds received from strategic property disposals, the sale of our NewRiver REIT plc shares and the issuance of two
privately placed bonds. The bonds were issued at attractive credit margins with R300m 3-year tenor issued at JIBAR
+100bps and R500m 5-year tenor at JIBAR +120bps. The strengthening of the Rand against the Euro further supported
the reduction in debt by a further R160m.
We maintained access to R5.7bn of unutilised committed facilities.
The weighted average term of debt decreased slightly to 3.8 years. Our weighted average Rand cost of funding improved
from 8.9% at FY25 to 8.6%, largely reflecting the 25bps interest rate cut by the South African Reserve Bank in July 2025.
Our interest cover ratio continues to strengthen, as it benefits from both reduced nominal debt balances and lower
finance costs following recent interest rate cuts.
Including cross-currency interest rate swaps (CCIRS) and foreign-denominated loans, our total cost of funding reduced
from 6.9% at FY25 to 6.8%, despite the refinancing of AUD CCIRS at higher interest rates.
During Q1, ZAR interest rate swaps of R900m matured at a weighted average rate of 7.8%, as well as ZAR caps of R700m
with a strike rate of 8%. We executed new three-year ZAR interest rate swaps of R500m at a weighted average rate of
7%. An additional R3.5bn in swaps will mature during the remainder of FY26 at a weighted average rate of 6.5%, as well
as a R500m interest rate cap with a strike rate of 8%.
AUD90m fixed-rate CCIRS matured at a weighted average rate of 1.6%, and AUD60m of floating-rate CCIRS also matured.
These were all re-hedged on a floating-rate basis for three years, requiring an additional R53.3m in liquidity. A further
AUD50m CCIRS will mature in FY26 at a fixed rate of 0.8%, with an estimated liquidity requirement of R43m, based on
an exchange rate of R11.46.
We executed a new 3-year EUR45m CCIRS on a floating rate basis, to replace the maturity of the EUR45m loan.
R294m of USDZAR swaps at a weighted average interest rate of 9.5% (including margin) matured in Q1 FY26. These relate
to the International Finance Corporation (IFC) loan extended to Growthpoint and on lent to GHPH. The USD20m was re-
hedged on a short-term floating-rate basis pending the outcome of the potential conversion to equity in GHPH or
repayment of the loan.
As at 30 September 2025, 74.6% of direct debt was hedged, up from 72.7% at FY25. Synthetic debt hedging decreased to
54.8% from 69.7% at FY25. The reduction in synthetic hedging reflects a strategic shift in response to market pricing,
particularly for fixed rate AUD CCIRS. In our view, the AUD swap curve has not yet adjusted sufficiently to reflect
expectations of further interest rate cuts by the Reserve Bank of Australia. As a result, we have maintained some
flexibility in our hedging policy, with a view to reassessing the position should market pricing become more favourable.
Additionally, the EUR45m CCIRS was executed on a floating rate basis, contributing to the overall decline in synthetic
debt hedging.
Growthpoint continues to monitor market developments closely and remains committed to maintaining a prudent and
cost-effective approach to debt management.
The exchange rates for the anticipated FY26 dividends from our international investments are partially hedged.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG)
Building on the positive impact of our renewable energy wheeling agreement, and informed by advances in, technology
and operating conditions, we are constantly advancing our environmental sustainability strategy. This includes setting
new targets and revisiting existing ones.
We invested R50m to secure a 30% interest in the Boston Hydroelectric Plant with a construction cost of c. R390.0m.
Growthpoint invested in a derisked project with a slight increase in valuation upon completion, to R416.7m. The project
is funded with R250.0m in project finance. The facility, which is within the Lesotho Highlands Water Scheme, has recently
commenced commercial operations. The plant will generate approximately 30GWh of renewable electricity annually
with a 100% offtake agreement with Growthpoint, supplying our properties through our 195GWh power purchase
agreement (PPA) with Etana Energy (Pty) Ltd. The PPA and this strategic investment strengthen our renewable energy
portfolio and support our long-term target of sourcing approximately 40% of FY28's total electricity consumption
(baseline FY23) from renewable energy, advancing sustainability and cost efficiency for our tenants.
Renewable energy remains a central focus in our journey toward carbon neutrality by 2050. By the end of Q1, we reached
61.54MWp (FY25: 61.17MWp) of rooftop solar PV capacity, a significant increase since 2020, when our portfolio stood at
7.5MWp. This rapid progress reflects the maturity of our solar programme, now spanning 83 systems across our diverse
portfolio.
We have fully offset our scope 1 & scope 2 emissions at Growthpoint-occupied spaces within three multi-tenanted
properties: Sandton Head Office (The Place), Cape Town Regional Office (Montclare Place), and KZN Regional Office
(Lincoln on the Lake). For these buildings, scope 1 emissions (130 tCO2e) were offset using carbon credits from the
Ngodwana Biomass to Energy Project, and scope 2 emissions (2 500 tCO2e) were neutralized through environmental
attributes from Growthpoint-owned solar PV assets.
We remain focused on improving utilities recovery through smart metering, setting targets for net-zero carbon, water
and waste buildings and expanding our renewable energy capacity. These initiatives will help to significantly reduce
greenhouse gas emissions and enhance the resilience of our buildings.
At the end of FY25, wheeling agreements were in place for 23 buildings, with 10 buildings identified to participate in
the first phase of the e-CO2 programme. Participating tenants can choose to source between 70% and 100% of their
electricity from renewable energy, backed by RECs to verify usage and support market-based reductions in scope 2
emissions. RECs can also be traded, with tenants that have subscribed to e-CO2 receiving one REC for 1MWh of renewable
energy. Nedbank Group Limited (Nedbank) has become one of the first businesses in South Africa to offset its carbon
emissions. Nedbank will offset its Scope 2 electricity emissions across 26 branches in Growthpoint-owned malls and
offices by utilising our RECs, setting a new benchmark for sustainability in South Africa.
Reducing electricity, water and waste intensity remains a priority, supported by ongoing projects to improve water
resilience and promote recycling across our properties. We have developed strategies to guide the implementation of
measures aimed at reducing water intensity and increasing the diversion of organic waste from landfill.
We continue to draw on the scale of our portfolio, expertise and innovative approaches to drive positive change across
our portfolio and in the communities we serve, staying true to our ESG commitments while adapting to the evolving
challenges of our time.
CHANGES TO THE PROPERTY & INVESTMENT COMMITTEE
The Board resolved to appoint Mr Andile Sangqu to the Property & Investment Committee with immediate effect with
the composition as follows:
- FM Berkeley (Chairman)
- M Hamman
- CD Raphiri
- AH Sangqu
CONCLUSION
Improved performance is evident across all three of our domestic portfolios, driven by a combination of both innovative
and proven strategic initiatives aimed at elevating portfolio quality and operational metrics. The V&A continues to
exceed expectations, benefiting from increased tourism and proactive asset management that consistently unlocks new
opportunities. Meanwhile, GIP is performing as expected, and our international investments are on track to deliver
results in line with our guidance.
Our guidance remains unchanged. Notwithstanding ongoing interest rate and currency uncertainty, we expect
distributable income per share (DIPS) for FY26 to grow by between 3.0% and 5.0% and dividend per share (DPS) growth
of between 6.0% and 8.0%, based on a FY26 payout ratio of 87.5%.
Growthpoint will release its half-year results for the six months from 1 July 2025 to 31 December 2025 on Wednesday,
11 March 2026.
This information is the responsibility of the Directors and has not been reviewed by our external auditors.
Capital Markets Day
We will be hosting an investors' Capital Markets Day today and all presentations are available on our website.
https://growthpoint.co.za/presentations/
27 November 2025
Equity and Debt Sponsor
Investec Bank Limited
Forward-looking statements: This announcement is the responsibility of the directors and contains forward-looking
statements that relate to the group's future operations and performance. Such statements have not been reviewed or
reported on by the Company's external auditors and are not intended to be interpreted as guarantees of future
performance, achievements, financial or other results. They rely on future circumstances, some of which are beyond
management's control, and the outcomes implied by these statements could potentially be materially different from
future results. No assurance can be given that forward-looking statements will be accurate; thus, undue reliance should
not be placed on such statements.
Date: 27-11-2025 07:05:00
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