Wrap Text
Group audited annual results and cash dividend declaration for the year ended 30 June 2026
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 2026
The financial results for the 12 months ended 30 June 2026 (FY26) including comparison to the
prior year (FY25) is set out below:
Group Highlights
• Distributable income per share (DIPS) increased by 4.3% to 152.6 cps (FY25: 146.3 cps),
underpinned by operational improvement in the SA sectors, an enhanced contribution
from the V&A and a meaningful reduction in finance costs following interest rate
reductions and a decrease in leverage on the SA balance sheet.
• Dividend per share (DPS) increased by 7.4% to 133.5 cents per share (cps) (FY25: 124.3
cps). Confidence in the sustainability of underlying property fundamentals coupled with
a conservative SA loan to value (LTV) ratio provides the catalyst for a measured increase
in the full-year payout ratio to 87.5%.
• Distributable income increased by 4.4% to R5.2bn (FY25: R5.0bn).
• Basic earnings per share increased by 38.8% to 223.59 cps (FY25: 161.10 cps).
• Basic headline earnings per share decreased by 24.9% to 119.40 cps (FY25: 159.01 cps).
• SA REIT consolidated Group LTV improved to 38.7% from 40.1% in the prior year. Leverage
levels have benefited from asset sales in the SA portfolio as we continue to execute on
the portfolio repositioning strategy as well as 3.3% (FY25: 2.3%) or R2.0bn (FY25: R1.4bn)
uplift in valuations for the investment property portfolio.
• SA REIT consolidated Group interest cover ratio (ICR) improved to 2.63 times from 2.38
times at FY25 with the SA ICR improving to 3.11 times from 2.66 times at FY25. The prior
year was re-presented to reflect the adoption of the SA REIT Best Practice
Recommendations (BPR) Third Edition.
• The resultant net asset value (NAV) per share, based on the SA REIT definition, increased
by 3.8% to 2 131 cps (FY25: 2 054 cps). Due to the adoption of the SA REIT BPR Third
Edition, the prior year NAV per share calculation was re-presented.
• Total Group revenue from continuing operations, excluding straight-line lease income
adjustments and Trading & Development (T&D) revenue, increased by 1.3% to R13.2bn
(FY25: R13.1bn).
• Our offshore investments, including Growthpoint Properties Australia Limited (GOZ),
Globalworth Real Estate Investments Limited (GWI) and Lango Real Estate Limited
(Lango), are currently delivering comparatively softer outcomes than the South African
portfolio, reflecting relatively higher interest-rate environments, significant office
exposure and more challenging leasing dynamics. In Europe and the rest of Africa,
performance is influenced by structural considerations, including our minority position
in GWI and its relatively illiquid shares, while Lango continues to carry elevated US dollar
debt. While these factors constrain near-term returns and capital flexibility, the
investments continue to provide meaningful geographic and earnings diversification over
the longer term. We continue to assess their strategic positioning within the Group and,
together with our partners and other stakeholders, evaluate alternative ownership,
capital and operating structures that could unlock greater value and position these
platforms for sustainable growth over time.
SA Highlights
• SA revenue (excluding T&D) increased by 0.5% to R8.3bn (FY25: R8.2bn). On a like-for-
like basis comparative growth was 4.1% (FY25: 4.1%). The result includes the impact of:
o Asset disposals during the year including R3.0bn of Office assets, R1.3bn of
Industrial assets and R568.0m of Retail assets. The capital recycled and the
proceeds from the disposal of NewRiver REIT plc (NRR) contributed to the
reduction in SA debt. The capacity created is intended to support the rollout of
our development pipeline, reinvest in existing assets and preserve balance sheet
capacity to pursue selective strategic opportunities.
o We have benefited from decreased vacancies across all three sectors, completion
of developments including the Arterial Industrial Estate, the redevelopment of
Bayside Mall and Beacon Bay Retail Park and the introduction of the Longkloof
Precinct Hotel which is showing good promise in its occupational ramp up phase.
o At a portfolio level in-force escalations of 6.8% (FY25: 6.8%) support the
sustainability of earnings with new leases entered into having an average
escalation of 6.7% (FY25: 6.9%). Growth and visibility of earnings is supported by
an improvement in average lease durations of 4.1 years (FY25: 3.6 years) for the
three sectors and positive reversion rates in the Retail sector of 0.8% (FY25: -
0.3%). Overall lease reversions in the portfolio were negative 2.3% (FY25: -0.9%)
predominantly impacted by Gauteng office renewals delivering negative 10.2%
(FY25: -4.4%) for the year. Reversions in the Industrial portfolio were marginally
negative at -0.5% (FY25: 0.4%) and were impacted by shorter term leases entered
into for the non-core portfolio as the disposal strategy is executed. For the Office
portfolio reversions as a whole were negative 6.3% (FY25: -3.2%). Performance
varied meaningfully across geographic regions, with the coastal portfolios
delivering stronger outcomes relative to Gauteng. Office reversions were positive
0.4% (FY25: 3.9%) in the Western Cape.
o Of our 1 495 875m² of South African office exposure, around 70% is located in
Gauteng, where the vacancy is currently 18.6% (FY25: 18.5%). Longer-standing
vacancies are concentrated in areas such as Midrand, Parktown and selected
pockets of Sandton. Although reversions in the Office portfolio remain negative
at -6.3% (FY25: -3.2%), weighted average lease escalations (WALE) of 7.2% (FY25:
7.1%) and weighted average future escalations on renewals of 6.9% (FY25: 7.5%),
combined with a significantly improved renewal success rate of 78.3% (FY25:
57.5%), continue to support positive net rental growth across the portfolio.
o As we continue to reposition our sector allocation over the medium term,
selected office assets remain an important part of our strategy. We remain
committed to Gauteng as South Africa’s principal corporate and economic
market, while becoming increasingly selective in our exposure. This includes
disposing of assets with weaker long-term competitive positioning and
concentrating capital in modern, sustainable and energy-secure properties within
established precincts where we see more robust tenant demand. Given the
portfolio’s scale and positioning, we believe it is also well placed to benefit from
an improvement in Gauteng’s economic environment and from a broader
recovery in the City of Johannesburg’s operating environment and infrastructure
over time.
• SA net property income (NPI) (excluding T&D) increased by 1.3% to R5.8bn (FY25:
R5.7bn), while total like-for-like NPI growth for the three sectors was 4.4% (FY25: 5.9%)
driven by gross property income growth of 4.1% and like-for-like property expenses
increasing by only 3.5% benefiting from cost containment as renewable energy initiatives
continue to roll-out and utilities expense recovery ratios improved in all three sectors.
Office sector like-for-like NPI grew by 3.1% (FY25: 6.8%), Logistics & Industrial sector by
4.9% (FY25: 5.5%) and Retail sector by 5.3% (FY25: 5.3%). Office sector operating cost
recoveries were negatively impacted by hotel operations, which are included in the
office portfolio for reporting purposes, particularly the Longkloof Precinct Hotel as it
continues to progress through its operational ramp-up phase.
• Gross lettable area (GLA) of 979 719m² (FY25: 1 013 534 m²) was let during FY26 resulting
in vacancies reducing to 7.2% at a portfolio level (FY25: 8.2%), which are at the lowest
levels since FY19.
• A total of 654 707m² was renewed across 871 leases during the year with 289 193m² (156
leases) in the Logistics & Industrial portfolio, 198 225m² (201 leases) in the Office
portfolio and 167 288m² (514 leases) in the Retail portfolio. In both the Logistics &
Industrial and Office sectors, a small number of large leases (four leases covering 43
226m² in Logistics & Industrial, and five leases covering 52 568m² in Office) had a
negative impact on renewal growth rates, reducing them to –0.5% (FY25: 0.4%) and –6.3%
(FY25: –3.2%) respectively. Both portfolios achieved longer lease durations, with the
weighted average lease period on renewals increasing from 3.0 years in FY25 to 4.0 years
and escalations on renewals averaging 7.3% (FY25: 7.5%) for the Logistics & Industrial
portfolio and 6.9% (FY25: 7.5%) for the Office portfolio.
• SA finance costs, including net finance income received on derivatives, decreased by
12.9% to R2.5bn (FY25: R2.8bn) due to lower average borrowings during the year and a
lower weighted average cost of debt of 8.6% (FY25: 8.9%). During the final quarter of the
year, we raised R1.8bn in the bond market, our lowest ever margins, at an average
margin of ZARONIA + 1.08%, across three-, five- and seven-year tenures. Subsequent to
year-end, we raised a further R3.1bn through private placements at an average margin
of ZARONIA + 1.34%, with more than 50% of the funding secured at a 10-year tenure. This
further diversified our funding base and extended the maturity profile of the Group’s
debt.
• The SA REIT LTV improved to 30.2% (FY25: 34.5%) due to lower net debt, following the
application of proceeds from the disposal of NRR and domestic asset sales.
• SA REIT gross total cost-to-income ratio for the SA business increased to 48.6% (FY25:
48.1% - re-presented as per the SA REIT BPR Third Edition) mainly due to higher other
administrative and operating overhead costs.
• The South African investment property portfolio (excluding GIP properties) increased in
value by 3.3% during the year. The uplift was driven primarily by improved underlying
income performance, while valuation assumptions remained broadly consistent with the
prior year. The benefit of lower 10-year bond yields was largely offset by higher risk
premiums applied across the portfolio.
V&A Waterfront Highlights
• The V&A Waterfront remains one of the group’s highest quality income sources. Like-for-
like NPI at the V&A increased by 10.6%, supported by a healthy tourism market, increased
footfall and positive economic momentum in the Western Cape. These had a positive
impact on retail densities, hotel occupation and growth in non-GLA spend.
• Growthpoint’s 50% share of distributable income increased by 19.0% to R964.7m (FY25:
R810.5m). The result benefited from once-off profits in residential sales at 5 Dock Road
which more than offset the impact of closure of the Table Bay Hotel during its
redevelopment. An increase in net finance costs on external borrowings aligns with the
V&A’s funding strategy as its development pipeline unfolds which includes the Marriott
EDITION Hotel expected to open at the end of October 2026. Cost containment continues
to benefit from savings attributed to the desalination plant.
• The V&A Waterfront’s development pipeline continues to support the long-term growth
of high-quality income streams within a world-class precinct. Recent amendments to the
unlisted REIT framework should further enhance the efficiency of the ownership
structure over time, while our longstanding partnership with the Government Employee
Pension Fund (GEPF), through the Public Investment Corporation (PIC), remains an
important strength. Together with the constructive relationship with the City of Cape
Town, these partnerships support the continued development and positioning of the
precinct as a significant asset for both our portfolio and the country.
• The earnings composition has evolved, with operational income from the underlying
hospitality, tourism, leisure and related businesses within the precinct increasing from
16% to 20% of total income. This enhances participation in the precinct’s strong operating
performance and broadens the Group’s sources of income, while introducing a degree of
exposure to factors such as visitor volumes and discretionary spending that influence the
performance of these underlying operations. Continued investment in the broader
transport and infrastructure network supporting access to the precinct remains
important. These factors are actively considered in our long-term planning, alongside
the Waterfront’s strong underlying fundamentals, diversified attractions and enduring
appeal to both local and international visitors.
Offshore Investments
• GOZ is the Group’s largest offshore investment and remains a core part of the portfolio,
notwithstanding a challenging operating environment characterised by elevated interest
rates, relatively high gearing and competitive leasing conditions, particularly across its
Office portfolio. Encouragingly, record office leasing increased occupancy to 95% (FY25:
92%), extended weighted average unexpired lease term (WAULT) and reduced near-term
expiries, while like-for-like Office property funds from operations (FFO) grew by 2.7%
(FY25: 3.2%). Management is actively addressing balance-sheet pressure through capital
recycling, including the proposed AUD268m Woolworths Distribution Centre disposal in
Perth, while keeping the FY27 payout ratio unchanged and reviewing the potential
introduction of a dividend reinvestment programme (DRIP) under review as part of
ongoing capital management. With overall occupancy at 96% (FY25: 94%) and strong
tenant relationships, GOZ remains well positioned to benefit when financing conditions
and broader market fundamentals improve. The company’s results were made public on
17 August 2026.
• The AUD distribution from GOZ (normalised for a AUD2.1 cps once-off distribution
received in FY25) increased from AUD18.2 cps for FY25 to AUD18.4 cps for FY26 resulting
in a net distribution received of R946.1m (FY25: R1 011.3m), lower due to the stronger
Rand. The payout ratio (excluding the once-off AUD2.1 cps distribution from FY25)
increased from 78.0% at FY25 to 78.2%. The dividend withholding tax on our receipts
decreased from 17.5% at FY25 to 7.4% at FY26.
• The portfolio delivered like-for-like property FFO growth of 2.6%, with the Office and
Industrial sectors growing by 2.7% and 2.6% respectively. GOZ revenue decreased by
2.0% to R3.7bn, largely due to the stronger average ZAR:AUD exchange rate during the
year (FY25: R3.8bn).
• GOZ LTV increased to 41.0% (FY25: 39.5%) which is well within its target range of 35% to
45%. This follows the acquisition of 78 Waterloo Road, Macquarie Park and lower fair
valuations on investment property, with Office and Industrial decreasing by 1.9% or
AUD47.4m and 0.9% or AUD14.1m respectively.
• The EUR dividend from GWI decreased from EUR14.0 cps (R251.6m) at FY25 to EUR12.0
cps (R197.7m) at FY26, mainly due to increased finance cost and an income tax expense.
The December 2025 dividend was reinvested during FY26 and the June 2026 dividend to
be received partly in cash and the balance reinvested in H1 FY27.
• GWI LTV improved from 38.0% at FY25 to 36.7%, with high levels of liquidity in the form
of cash retained.
• At Lango, NPI increased by USD8.2m, or 16.4%, compared with the prior year primarily
driven by the acquisition of the AttAfrica portfolio in FY25. Our 18.9% (FY25: 15.7%)
equity investment in Lango valued at R633m at FY26 (FY25: R779m) is classified as an
unlisted investment. The reduction reflects a combination of foreign currency translation
movements, lower earnings as a result of higher interest costs and the impact of property
valuation movements. Following the internalisation of Lango’s management company in
FY25, Lango Real Estate Management Limited (Lango Manco) repurchased its shares held
by Growthpoint and the other shareholders. In lieu of cash settlement, Growthpoint
received Lango loan notes, which are convertible into Lango shares. The loan notes were
valued at R207m at FY26. As a result, Growthpoint derecognised its previously held
equity-accounted investment in Lango Manco.
Growthpoint Investment Partners (GIP)
• In furtherance of its strategy to scale its business on 8 December 2025, Growthpoint
Healthcare Property Holdings (RF) Limited (GHPH), acquired 95% of the issued share
capital of Brenthurst Retirement Holdings (Pty) Limited, trading as Auria, for R1.2bn,
settled in cash and paid for with gearing raised on the GHPH balance sheet. The effective
date for International Financial Reporting Standards (IFRS) income accrual was 1 January
2026.
• GIP’s Assets Under Management (AUM) increased to R13.5bn (FY25: R8.6bn), mainly
driven by the R3.6bn gross asset value acquisition of Auria:
o GHPH AUM increased to R8.5bn (FY25: R4.2bn).
o Growthpoint Student Accommodation Holdings (RF) (GSAH) AUM increased to
R5.0bn (FY25: R4.4bn).
• Growthpoint received gross management fees of R109.5m (FY25: R98.7m) from GHPH
and GSAH, as well as dividends of R102.8m (FY25: R119.9m). The decrease mainly
reflects Auria’s net loss contribution for the six-month period since acquisition, driven
primarily by the higher interest cost associated with the fully debt-funded acquisition.
• GHPH’s LTV increased to 51.4% compared to 16.8% in FY25. This increase is primarily
attributable to the recognition and consolidation of the Life Right Liabilities, along with
the debt funding utilised to finance the Auria acquisition. Excluding the Life Right
Liability the FY26 LTV would reduce from 51.4% to 29.1%.
• GSAH LTV increased to 28.8% (FY25: 28.6%) due to increased borrowings to fund the
development of Hluma Studios at the University of KwaZulu Natal, which was offset by
the R425m equity raise in FY25.
• GIP’s strategy is to continue scaling its core sectors, while integrating the Auria
acquisition and advancing the development pipelines across both its healthcare and
student accommodation platforms, with a view to positioning these businesses for
potential listings over the medium term.
Distributable income for FY26
SA Net SA T&D V&A GWI GOZ C&R & Lango GIP[2] Total[3]
Rm finance Rm Rm Rm Rm NRR[1] Rm Rm Rm
cost Rm
Rm
Revenue 8 275 - 53 - - 3 707 - - 1 246 13 281
Property expenses (2 506) - (49) - - (847) - - (431) (3 833)
Other operating expenses (475) - (56) - - (425) - - (116) (1 072)
Finance cost - (2 459) - - - (1 066) - - (278) (3 803)
Dividend from equity - - - 965 198 - - - - 1 163
accounted investment
Finance and other income - 99 - - - 34 - - 23 156
Non-controlling Interest - - - - - (584) - - (276) (860)
(NCI)
Amortisation of incentives - - - - - 541 - - - 541
added back
Realised foreign exchange - - - - - 119 - - - 119
gain
Profit on disposal of a 9.5% - - - - - - - - 25 25
share in the GSAH Manco
Current normal taxation - - - - - (88) - - - (88)
Auria net life right sales - - - - - - - - 16 16
Distributable income - - - - - (445) - - (20) (465)
retained (including NCI's
portion)
Total distributable income 5 294 (2 360) (52) 965 198 946 - - 189 5 180
(FY26)
Total distributable income 5 262 (2 731) 12 810 252 1 011 148 11 189 4 964
(FY25)
1) Capital & Regional plc (C&R) and NRR. 2) Including management fees. 3) Intercompany finance costs on the convertible loan between
Growthpoint and GHPH have been eliminated in the table.
Strategy and execution
Our strategic priorities include:
1. Improving the quality of the SA portfolio by:
o Reducing the relative weighting of the Office sector through the targeted disposal of
assets in weakening business nodes as well as B-grade properties with limited long-
term competitiveness. The majority of all C-grade assets have been disposed of. The
core Office portfolio will increasingly be concentrated in modern, sustainable and
energy-efficient assets within established precincts, while carefully managing
concentration risk and maintaining alignment with the Group’s longer-term portfolio
objectives.
o Focusing our retail exposure on large-scale, dominant assets within their respective
catchment areas, serving growing and defensive markets with strong long-term
relevance.
o A measured increase in exposure to the Logistics & Industrial sector through both
acquisitions and development, with a focus on modern logistics assets in growing
nodes. Our preference is increasingly toward scalable logistics parks rather than
standalone assets, and toward more generic, adaptable facilities with broad tenant
appeal rather than highly specialised properties. This will be complemented by the
continued recycling of capital from older, sub-optimal assets in weakening nodes.
o Leveraging our T&D platform to reposition underperforming assets aligned to our
long-term strategy, unlocking bulk development opportunities that generate
attractive returns and where strategically appropriate, retaining these assets for
sustained growth.
o Evaluating all sectors through a precinct-led lens, leveraging scale and focused asset
management to generate sustainable returns and assist in mitigating prevailing
municipal governance and infrastructure constraints.
The execution thereof has included:
• The disposal of non-core assets and assets that pose concentration risk:
o During the year we sold 29 properties across the three sectors for R4.9bn
(excluding T&D) with a resultant loss on book value of R4.0m (FY25: 24 properties
sold for R2.3bn, with a profit on book value of R0.4m).
o Nine properties with a value of R694.9m are held for sale at FY26 (FY25: five
properties at R317.4m).
o Disposal proceeds were applied to debt reduction, reinvestment and retaining
debt capacity for our development pipeline.
o Since 1 July 2016, 214 properties have been sold for R19.9bn across the three
sectors (including T&D). The total number of properties decreased from 471
properties to 302 and GLA reduced by 26.0%. Repositioning of the SA property
portfolio is being supported by our targeted disposal strategy.
o The Office sector’s portfolio weighting decreased from 46.0% to 39.0%, while
Logistics & Industrial increased from 15.0% to 20.0%, Retail from 39.0% to 40.0%
and T&D from 0% to 1%.
o The rebalancing of our portfolio weighting to achieve sustainable long-term
earnings growth, includes the review of core assets where concentration risk,
capital allocation priorities and other factors may drive a disposal decision.
During the year we disposed of our 55% interest in the Discovery Phase 1 building
in Sandton for R2.3bn. The net proceeds of R1.9bn were utilised to settle debt,
which if considered as a standalone transaction would result in an estimated 1.3%
decrease in SA LTV. The transaction is estimated to be 1.0% dilutive to FY27 DIPS.
• We continue to prioritise growing our exposure to the better-performing Logistics sector,
through disciplined investment and development in assets aligned with our long-term
portfolio strategy:
o Our total development pipeline is estimated at between R2bn-R3bn per year for
the next five years with the Logistics and Industrial sector developments
comprising R1.4bn, Office sector R0.3bn and Retail sector R0.5bn for FY27.
o The successful implementation thereof is starting to bear fruit and is evident in
the performance of the Logistics and Industrial portfolio:
- Vacancies reduced to 2.9% at FY26 (FY25: 4.1%).
- WALE of 7.4% (FY25: 7.5%), positively impacting the performance of the
portfolio.
• Our development and capital expenditure is focused on the stronger performing Western
Cape province due to its more attractive property market fundamentals. A total of
R1.3bn (FY25: R1.6bn) development and capital expenditure was incurred during the
year with key projects including the redevelopment of 36 Hans Strijdom in Cape Town
(R98.7m) and Longbeach Mall, Noordhoek (R97.6m). We also upgraded La Lucia Mall,
Durban (R52.7m) and we are currently progressing with the redevelopment of Paarl Mall,
Paarl (R59.6m) in line with our strategy to upgrade and reposition all long-term hold
retail assets.
• To reduce our reliance on the national grid, address water supply and security we have
implemented the following environmental initiatives:
o Total installed solar capacity of 69.31MWp at FY26 (FY25: 61.20MWp).
o During FY26 we completed solar installations of R120.6m (FY25: R146.7m) and to
date have spent more than a R1bn on 98 solar plants.
o Wheeling of energy from the power purchase agreement (PPA) with Etana Energy
(Pty) Ltd commenced in October 2025 and generated 23.6GWh of renewable
energy in FY26.
o The total energy consumption derived from renewable sources increased from
7.9% at FY25 to 19.0% at FY26 when measured against our FY23 energy demand
baseline.
o As at 30 June 2026, we utilised 55 (FY25: 42) licensed boreholes and 178 (FY25:
162) water backup facilities with a total storage capacity of 12 342kl (FY25: 9
854kl).
o During FY26, we increased our waste diverted from landfill to 51.3% from 42.3%
in FY25.
2. Our medium-term international strategy is focused on simplifying our investments through a
pragmatic review of ownership structures, while working with management teams to
evaluate initiatives that unlock shareholder value:
• In August 2025 we disposed of our 14.2% investment in NRR at 75.0 pence per share,
raising gross sales proceeds of £50.2m (R1.2bn).
• 35.6% (FY25: 38.0%) of Growthpoint’s property assets by book value are located offshore;
the reduction is mainly as a result of the disposal of NRR.
• 22.1% (FY25: 28.7%) of Growthpoint’s DIPS is earned offshore; the reduction is
predominantly due to the disposal of C&R and lower Rand equivalent distributions from
GOZ and GWI.
• FY26 saw a 19.5% decrease in Rand-equivalent foreign currency income, via cash and
scrip dividend alternatives, of R1.1bn (FY25: R1.4bn).
Liquidity and capital management
We manage liquidity and leverage pragmatically and conservatively, actively refinancing debt
where opportunities arise to improve funding margins, while maintaining sufficient flexibility to
support our development pipeline and pursue strategic initiatives:
• R5.7bn (FY25: R4.7bn) unutilised committed funding facilities for SA.
• R323.6m (FY25: R878.9m) cash balance on the SA balance sheet as at year end.
• R647.5m (FY25: R744.6m) cash retained, before income tax, as a result of the 87.5%
dividend pay-out ratio (FY25: 85.0%).
• Our hedging ratio profile per currency: ZAR of 74.5% (FY25: 71.4%), EUR of 78.7% (FY25:
78.7%), AUD of 51.1% (FY25: 65.6%) and USD of 100.0% (FY25: 100.0%).
• Our access to capital markets remains strong as evidenced by the R1.8bn public bond
issuance at the lowest margins achieved in a Growthpoint bond auction.
Prospects
South Africa’s operating environment is showing greater stability, with tentative signs of
improvement emerging across selected areas of the economy. However structural constraints,
including unemployment, infrastructure challenges and global trade uncertainty, remain.
International developments, including the ongoing conflicts in the Middle East, are expected to
continue to have an unfavourable impact on inflation, interest rates, energy prices and economic
activity across our markets. Against this backdrop, Growthpoint enters FY27 with improving
South African property fundamentals, a stronger balance sheet and a portfolio increasingly
positioned towards higher-quality and more resilient income.
Our priorities remain focused on disciplined capital allocation, tenant retention, active asset
management, cost containment and continued investment in sustainable, energy-efficient
properties. We intend to recycle between R2bn and R3bn of assets annually, subject to market
conditions, acceptable pricing and disciplined execution. While disposals may create short-term
earnings dilution, the proceeds will support debt reduction, investment in higher-growth sectors
and regions, and the development pipeline, thereby strengthening the portfolio’s long-term
earnings quality and resilience.
The South African portfolio is expected to benefit from improved vacancies, stronger tenant
retention, longer lease commitments and healthy contractual escalations. The Retail sector
remains well positioned, supported by low vacancies, positive renewal growth and high
retention. The Logistics and Industrial sector is expected to remain a key area of growth,
underpinned by low vacancies, improving renewal success and demand for modern logistics
assets.
The Office sector’s performance is stabilising, but the recovery remains uneven. The Western
Cape continues to deliver strong operating performance, while Gauteng remains challenged by
elevated vacancies and negative rental reversions. Gauteng nevertheless remains South Africa’s
principal corporate and economic market. We will continue to reduce exposure to obsolete or
structurally challenged properties while retaining and investing in modern, sustainable and
energy-secure offices in established precincts and stronger nodes where we see durable tenant
demand and recovery potential.
The V&A Waterfront remains a high-quality and differentiated contributor to Group earnings. Its
diversified exposure to retail, tourism, hospitality, residential development and operations
provides a strong platform for further growth supported by the InterContinental Table Bay Hotel,
the opening of the Marriott EDITION Hotel, the launch of the Superyacht Marina and a full-year
contribution from the expanded luxury retail offering. Tourism and hospitality remain sensitive
to global economic and geopolitical developments, but the precinct’s underlying fundamentals
and long-term appeal remains strong.
The performance of the offshore investments is expected to remain mixed. GOZ enters FY27
with a strong operating platform, high occupancy, reduced near-term lease expiries and
sufficient liquidity to meet FY27 debt maturities. Its focus remains on improving portfolio
performance, growing funds management and optimising its capital structure through disciplined
capital recycling and a review of its distribution and reinvestment policies.
GWI maintains moderate leverage and strong liquidity, with shareholders continuing constructive
discussions on its future strategy.
Across the offshore portfolio, elevated funding costs, office exposure and the timing and
reliability of cash distributions remain areas of focus. We will continue to assess the strategic
relevance, ownership structures and capital requirements of these investments while recognising
the longer-term diversification benefits they provide.
Overall, improving South African operating fundamentals, strong coastal performance, the V&A
Waterfront’s high-quality income and lower finance cost margins provide a sound foundation for
FY27. Gauteng office fundamentals, negative rental reversions, cost pressures and offshore
distributions remain challenging, but are being addressed through sharper asset selection,
precinct-based investment, active asset management, capital recycling, cost efficiency and
continued balance sheet discipline.
Subject to no further material deterioration in market conditions or unforeseen events,
Growthpoint expects FY27 DIPS and DPS to grow by between 1.0% and 3.0%, with a payout ratio
of 87.5%.
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.
Update to directorate
José Snyders joined as the Group Chief Financial Officer on 1 January 2026, while Gerald Völkel
continued as Group Financial Director until 31 March 2026 to ensure a smooth leadership
transition.
The Board wishes to formally acknowledge and thank Gerald for his unwavering dedication and
distinguished service. In addition to his significant professional contribution, Gerald will be
remembered for his gentlemanly conduct, humour and genuine care for colleagues. The Board
extends its sincere best wishes to him for a fulfilling and well-deserved retirement.
As announced on 11 August 2025, Estienne de Klerk was appointed as Group CEO effective 1 July
2026. Norbert Sasse served as Group CEO until 30 June 2026 and remains in an executive role
until 31 December 2026. Estienne recently underwent a successful medical procedure and is
presently recovering at home. Norbert has assumed the Group CEO role in the interim until
Estienne’s return to office which is expected to be in approximately 4 - 6 weeks.
Nooraya Khan was appointed as an independent non-executive director on 1 April 2026.
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 have been
prepared in compliance with the JSE Limited’s Listings Requirements 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 following websites:
https://growthpoint.co.za/financialreporting
https://senspdf.jse.co.za/documents/2026/jse/isse/GRTE/Final26.pdf
Final dividend
Notice is hereby given of the declaration of the final dividend number 81 of 67.30000 cps for the
six months and year ended 30 June 2026. 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 53.84000 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
Last day to trade (LDT) cum dividend Tuesday, 13 October 2026
Shares to trade ex dividend Wednesday, 14 October 2026
Record date Friday, 16 October 2026
Payment date Monday, 19 October 2026
Notes:
1. Shares may not be dematerialised or rematerialised between the commencement of
trade on Wednesday, 14 October 2026 and the close of trade on Friday, 16 October 2026,
both days inclusive.
2. The above dates 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
9 September 2026
Equity sponsor: Investec Bank Limited
Debt sponsor: Investec Bank Limited
Date: 09/09/2026 07:05:00
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