Wrap Text
Investor Update for the nine months ended 31 March 2025 and Changes to the Board
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"
INVESTOR UPDATE FOR THE NINE MONTHS ENDED 31 MARCH 2025 AND CHANGES TO THE BOARD
We are pleased to present our trading update for the nine months from 1 July 2024 to 31 March 2025.
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 of R2.8bn for the year ending 30 June 2025 (FY25) focused on reducing our
exposure to the office sector, particularly B and C grade offices, disposing of older industrial and manufacturing
assets and exiting non-core retail properties in deteriorating central business districts (CBD), as well as smaller
retail and specialised assets such as motor dealerships.
For FY25, we have also targeted an investment of approximately R2.2bn in our core portfolio, excluding
Growthpoint Investment Partners (GIP), to preserve and enhance value through active asset management. This
includes developing high-quality assets, notably modern logistics warehouses for our logistics and industrial
portfolio and advancing sustainability initiatives across all three property sectors as we progress towards carbon
neutrality by 2050. We are also focussing on increased investments in the Western Cape, particularly in the
logistics and retail sectors.
We continue to grow assets under management (AUM) and generate diversified returns through GIP and our
Trading & Development (T&D) business unit. The V&A Waterfront is predicted to achieve significant growth in
the next three to five years and we continue to evaluate long-term sustainable solutions to its ongoing capital
requirements.
- Our international strategy is currently 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, with the purchase of an A$40m asset in Stapylton, Queensland.
At Globalworth Real Estate Investments Ltd (GWI) we support management's value unlock initiatives. We are
expecting a decrease in dividend income for FY25 due to the significant increase in their cost of debt resulting
from their bond re-finance in May 2024.
We disposed of our non-core investment in Capital and Regional plc (C&R) to NewRiver REIT plc (NRR) for R2.4bn
(GBP103.6m) on 10 December 2024, settled by R1.2bn (GBP50.2m) of cash and newly issued NRR shares worth
R1.2bn (GBP53.4m), representing 14.2% in NRR. The cash proceeds were used to settle ZAR debt. NRR published
its preliminary unaudited results for the year ended 31 March 2025 on 3 June 2025. It delivered a strong
performance, underpinned by the successful acquisition of C&R and solid operational execution. Having declared
an interim dividend of 3.0 pence per share in December 2024, NRR declared a final dividend relating to the
second half of the financial year of 3.5 pence per share. The final dividend is payable on 8 August 2025 and the
shares went ex-dividend on 19 June 2025.
We continue to evaluate all options to maximise the value of our investment in GWI and NRR.
Capital allocation
Our capital management is disciplined with targeted capital and development expenditure funded through cash retained
from the 17.5% dividend retention ratio and proceeds from disposals. While our targeted disposal strategy continues
apace, transfers of disposed properties are taking longer than expected due to delays in obtaining Competition
Commission approvals, rates clearance certificates and registration at the Deeds Office. We sold and transferred 15 non-
core assets for R1.1bn, at a total discount of R29.6m to book value. An additional R445.0m transferred since 1 April
2025, while assets worth R1.2bn are still awaiting transfer of which R783.2m is expected to transfer by 30 June 2025,
bringing anticipated disposals for the year to R2.3bn, R500m less than our R2.8bn target. Of the disposals awaiting
transfer, R783.2m relates to sale of 11 Adderley, Golden Acre and Grand Parade, which have been lodged at the Deeds
Office.
We incurred R1.2bn of development and capital expenditure for the SA portfolio during the period, including the
redevelopment of Bayside Mall, Table View (R147.1m), The Hilton Canopy Hotel, Longkloof Studios, Gardens (R192.8m),
36 Hans Strijdom Avenue, CBD (R103.7m) and R147.4m on developing new high quality, modern logistics warehouses in
the Western Cape.
SOUTH AFRICAN PORTFOLIO
Our property key performance indicators (KPIs) continue to show pleasing improvements across all three sectors.
Vacancies improved from 8.7% at 30 June 2024 (FY24) to 8.4%, slightly above the 8.3% recorded at 31 December 2024
(HY25). The marginal increase in this quarter is largely due to the addition of 18 768m² of vacancy from the newly
completed speculative development, Arterial Industrial Park Phase 2 in Cape Town. During this reporting period a total
of 775 095m² of space was let, comprising 434 945m² of renewals and 340 150m² of new lets.
Renewal rental growth rates improved meaningfully across all sectors, reducing from -6.0% at FY24 to -1.8% at HY25,
and now standing at -1.0%. However, our lease renewal success rate declined from 76.3% at FY24 to 68.8% at HY25 and
currently stands at 67.4%.
The weighted average lease term on renewals remained steady at 3.6 years, unchanged from HY25 but slightly lower
than the 3.7 years achieved at FY24. Rental escalations for renewals were also stable at 6.9%.
Property portfolio KPIs
Retail Office Logistics & Industrial Total HY25 FY24
Mar-25 Dec-24 Jun-24 Mar-25 Dec-24 Jun-24 Mar-25 Dec-24 Jun-24 Mar-25 Dec-24 Jun-24
Vacancy 5.7% 5.7% 5.5% 14.7% 15.9% 15.1% 4.4% 3.5% 5.2% 8.4% 8.3% 8.7%
Renewal
84.6% 84.4% 86.4% 54.7% 45.5% 62.1% 65.4% 71.7% 78.3% 67.4% 68.8% 76.3%
success rate
Weighted
average
-0.8% -1.2% -2.1% -3.3% -6.9% -14.8% 0.7% 0.9% -3.3% -1.0% -1.8% -6.0%
renewal growth
rate
Weighted
average
4.9 4.8 4.0 2.9 3.0 3.6 3.1 3.0 3.5 3.6 3.6 3.7
renewal lease
period (years)
Weighted
average future
6.3% 6.4% 6.4% 7.5% 7.5% 7.2% 7.5% 7.5% 7.4% 6.9% 6.9% 6.9%
escalations on
renewals
Total arrears
30.6 32.8 26.0 49.0 40.5 35.1 16.3 19.5 21.8 95.9 92.8 82.9
(Rm)
YTD Disposals
304.4 304.4 491.0 143.8 104.3 91.0 672.7 180.7 327.0 1 120.9 589.4 907.7
(Rm)
YTD Disposals
(Number of 3 3 3 3 2 3 9 7 11 15 12 17
properties)
Retail sector
Consumer confidence has strengthened, supported by moderating inflation, stable interest rates, and minimal load-
shedding.
Our retail fundamentals remain solid with trading density growth of 4.5% for the nine months ended 31 March 2025,
reflecting an annual average trading density of R36 333/m². Footfalls grew 2.6% year-on-year, and the rent-to-turnover
ratio remains sustainable at 7.6%. In the first quarter of 2025 (1 January 2025 – 31 March 2025), trading density growth
improved 5.5%, with community centres outperforming regional malls, posting an annual trading density of R56 305/m².
Core retail vacancies remain low at 4.6%. Including office space within centres, retail vacancies increased slightly from
5.5% at FY24, to 5.7%, mainly due to Game exiting Brooklyn Mall and Alberton City and space reductions by Edgars at
Alberton City, Northgate Mall and Kolonnade Shopping Mall. In FY26 we expect further Edgars reductions at Walmer Park
Shopping Centre, Paarl Mall and Vaal Mall and they will exit at Keywest Shopping Centre. The office vacancies at Golden
Acre remain a significant contributor to total retail vacancies. The asset is in the process of being sold and is expected
to transfer by the end of FY25, together with Grand Parade for a combined R521.3m in sales proceeds.
Rental reversions are reflecting a stabilising retail trading environment and continue to trend towards neutral-to-positive
levels, improving from -2.1% at FY24, to -1.2% at HY25 and now standing at -0.8%. Based on current trends, we expect
renewal growth of similar levels at the end of FY25.
The renewal success rate decreased from 86.4% at FY24, to 84.4% at HY25 and to 84.6% currently, mainly due to non-
renewals in our Gauteng portfolio at Alberton City, Brooklyn Mall and Northgate Mall. In line with our strategy to dispose
of CBD properties and smaller retail assets, retail properties of R304.4m were sold and transferred by the end of March
2025. An additional motor dealership was sold for R126.0m and transferred after the end of March 2025.
The major upgrade of Bayside Mall in the Western Cape has been completed, resulting in a turnover and footfall increase
of 26% and 14% respectively, for the nine months ended 31 March 2025. The redevelopment of the former Edgars premises
for Builders Express at Beacon Bay Retail Park in the Eastern Cape was also completed. A total upgrade of this centre is
under way and due for completion by June 2025. Checkers has relocated to the former Game premises in Watercrest
Mall while Shoprite has opened in the space formerly occupied by Checkers. Construction of a new Shoprite at Northgate
Mall has begun and is scheduled for completion in July 2025.
Solar photovoltaic (PV) installations added 23MWp of renewable energy capacity across nine retail properties. With the
recent installation at Keywest Shopping Centre, backup municipal water storage systems for up to two days have now
been installed at all our Gauteng retail centres. Filtered borehole water projects are also well advanced at Festival Mall,
Woodmead Value Centre, La Lucia Mall and Lakeside Mall.
Data-driven decision-making is enhancing our understanding of customer behaviour and driving our tenant mixes. We
have installed our own fibre backbone at Bayside Mall as a proof of concept to generate non-GLA income for the retail
portfolio. Free Wi-Fi has also been rolled out at Bayside Mall, Keywest Shopping Centre and Lakeside Mall. These assets
now benefit from improved insights into customer behaviour through Wi-Fi analytics, cell phone data and outsourced
credit spend card analysis. Admyt parking has been commissioned for Gardens Centre and Brooklyn Mall with the
intention of ultimately installing additional ticketless parking environments across the portfolio.
Office sector
The office sector continues to experience mixed dynamics, with vacancies having stabilised following a prolonged
decline. National market data (MSCI and SAPOA) shows that, while earlier improvement was evident, future vacancy
reductions may plateau due to structural changes in employment and the tenant mix.
We successfully concluded leases for 123 524m² and renewals for 93 423m², improving vacancies to 14.7%, down from
15.9% at HY25 and 15.1% at FY24.
The Western Cape and KwaZulu-Natal portfolios continue to outperform the Gauteng portfolio, driven by stronger
demand and limited supply, and remain a key area for future growth. In KwaZulu-Natal vacancies remained consistently
low at 0.4%, while the Western Cape saw an increase from 5.3% at FY24 to 8.0%, mainly due to RCS vacating at Golf Park
and relocating to other premises. An existing tenant in the park has taken a portion of the space with an additional
tenant in our portfolio taking the remainder of the space. 11 Adderley also carries a large vacancy and is in the process
of being sold, with transfer expected by June 2025, which will reduce total office vacancies to 6.1% in the Western Cape.
The overall vacancy reduction was driven mainly by our inland portfolio, where vacancies decreased from 19.3% at FY24
to 17.9% due to disposals and letting at Gilloolys View, The Place and 3012a William Nicol. Transnet is expected to vacate
21 977m² in Parktown, Johannesburg which will add to the vacancy rate in July 2025.
Rental reversions have shown a strong recovery, improving from -14.8% at FY24 to – 6.9% at HY25 and are currently at
-3.3%. Gauteng recorded a notable improvement from -19.9% at FY24 to -4.8%, while KwaZulu-Natal declined from -8.7%
at FY24 to -12.0%. The Western Cape delivered a strong turnaround, improving from -9.4% at FY24 to a positive 3.5%.
The lease renewal success rate declined from 62.1% at FY24 to 54.7%, primarily due to four non-renewals totalling c. 28
000m², accounting for 36.4% of leases not renewed in the period. While rental trends are stabilising in growth nodes,
tenant retention and efficient re-letting remain crucial to income stability. Ongoing disposals are enhancing portfolio
quality and redirecting capital to higher-growth nodes with better long-term prospects. We sold and transferred Boundary
Place, Illovo for R39.5m during Q3 of FY25. Lumley House in Parktown North transferred post-March 2025 for R23.3m.
We also approved the disposal of two non-core properties in Parktown for a combined R156.7m, and one in Bryanston
for R73.0m.
Development capital is directed toward high-potential, ESG-aligned properties in strategic coastal locations. The green
renovation of 36 Hans Strijdom in the Foreshore, supported by a 15-year lease with Ninety One Limited, is due for
completion by October 2025. The Canopy by Hilton, Longkloof, Cape Town was completed at a total investment of
R420.0m and opened during January 2025.
While office properties typically offer substantially less roof space than logistics and retail properties, we installed
295kWp of solar PV at Illovo Corner and Bridge Park.
Logistics & Industrial sector
Our long-term strategic objective remains firmly centred on building a premium logistics and industrial portfolio,
anchored by high-quality logistics warehouses and distribution facilities. The strategy focuses on rebalancing the
industrial portfolio by region and asset type to improve both portfolio and asset-level performance. This includes
proactive asset management, disposing of non-core properties that no longer meet our investment criteria and increasing
the sectors contribution share within the SA portfolio by growing our footprint in the coastal regions.
Our growth strategy is underpinned by sustainable income from existing assets occupied by quality tenants on medium-
and long-term leases. It also includes a landbank pipeline from which value can be unlocked through new developments
across all three regions. We continue to redevelop and optimise existing assets to grow GLA, reduce vacancies, escalate
rentals, lower expenses and secure longer lease terms.
Vacancies improved from 5.2% at FY24 to 4.4%, primarily due to the successful leasing of new speculative developments,
albeit higher than the 3.5% recorded at HY25. The increase stems mainly from new space created by the completion of
Phase 2 of Arterial Industrial Estate in the Western Cape, the speculative development added to the portfolio at the end
of March 2025. Regional vacancy trends include a slight increase in KwaZulu-Natal from 1.1% at HY25 to 3.4%, and in the
Western Cape from 0.6% at HY25 to 5.0%. In Gauteng, where two-thirds of the portfolio is located, vacancies declined
from 5.3% at HY25 to 4.5%.
Rental reversions improved impressively, moving into positive territory from -3.3% at FY24, 0.9% at HY25 and now at
0.7%. The Western Cape portfolio stands out with positive rental growth of 8.1%, driven by strong demand and limited
supply. Reversions remain negative in Gauteng and KwaZulu-Natal, at -2.5% and -3.6% respectively. Tenant retention has
declined from 78.3% at FY24 to 71.7% at HY25 and is currently at 65.4%.
Investment interest from non-institutional investors, particularly owner-occupiers, remains robust in this sector. During
the reporting period, we sold and transferred nine industrial properties for R672.7m. A further five properties, totalling
R295.7m, transferred post 1 April 2025. All of these are older, non-core industrial assets in areas where we are either
overexposed or seeking to exit.
In support of our objective to enhance the portfolio quality and increase our Western Cape exposure, we completed
Phase 2 of Arterial Industrial Estate in March 2025 in response to the strong demand for these logistics units. This phase
added 21 832m² of prime logistics space to our portfolio. In KwaZulu-Natal, the Greystone Heliport redevelopment added
1 820m² GLA to the existing facility.
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).
The team completed two developments for GSAH, Thrive @ Crescent Studios (870 beds, formerly The Podium), and
Thrive @ Arteria Parktown (480 beds, formerly 33 Princess of Wales) and welcomed students for the 2025 academic year.
Two sectional title industrial redevelopments in Pinetown were completed, with seven of the 16 units at Devro Park and
14 of the 20 units at Palm River sold for R64.6m realising a profit of R15.7m. We expect to realise additional profit of
R4.4m by 30 June 2025.
The residential conversion of the Riverwoods office building in Bedfordview into the BlackBrick Bedford Urban Resort,
sold for R113.7m realising a profit of R16.9m. It was 52.0% sold by end of March 2025 and a further R14.8m in proceeds
are expected by 30 June 2025.
The development of the Sandton link bridge has commenced and estimated completion date is October 2025. The bridge
connects The Place, Sandton to the parking area at Sandton City.
Residential development in high-demand nodes is enhancing both land and long-term precinct value. We have recently
launched the Olympus Sandton residential development within our Sandton Summit precinct, which has attracted high
presale demand with 412 of the 505 units sold for c. R1.3bn, including three penthouses of R45.0m each.
V&A Waterfront (V&A)
Earnings before interest and tax (EBIT) grew by 23% compared to the same nine months in 2024. This was driven by a full
period of office rental from Investec Limited and the inclusion of The Portswood and The Commodore Hotels, now owned
by the V&A and managed under contract by Legacy as the operator.
Growth in EBIT was also supported by increased retail sales, which boosted turnover-based rental income. Retail sales
grew by 5%, though this was slightly muted due to the exclusion of Easter holidays, which fell in April this year and a
reduction in sales of 2.5% while the Luxury Mall is under development. Over a rolling 12-month period, visitor numbers
reduced by 2% as shopping habits continued to shift alongside the rise of online grocery sales. Total footfall stood at
24.5m.
Tourism growth remained steady over the year to 31 March 2025 with international passengers arriving at Cape Town
International Airport increasing by 6% and domestic arrivals increasing by 4%.
Hotel demand remained strong, supported by tourism and events. Average daily rates increased by 16% compared to the
same period last year.
Office space continued to perform well, with strong demand and zero vacancies contributing positively.
The marine & industrial sector also saw improvement, driven by increased demand for casual berths and heightened
cruise terminal activity.
Investment in the precinct continued, with several key developments commenced or advanced during the period:
- The Union Castle Building (GLA of 2 678 m²) was successfully reopened in December 2024, now home to a flagship
Nike store and the highly anticipated Marble restaurant,
- Development commenced on the 3 759m² new luxury wing in the Victoria Wharf with all space committed. It is
due to open between December 2025 and April 2026,
- The desalination plant was successfully commissioned and has been operational since mid-March 2025,
generating 3.3kl of water per day,
- The Table Bay Hotel closed at the end of February 2025 for a major refurbishment and conversion to a 306 key
hotel. The hotel, owned by the V&A, will operate under a franchise agreement with InterContinental Hotel Group
and be managed by Sun International. Reopening is scheduled for December 2025,
- Development of the Quay 7 luxury hotel, comprising 142 keys, is well progressed to complete by March 2026,
and
- Construction of the 5 Dock Road residential apartments commenced during the period with completion expected
in November 2025. The strong demand is reflected in the 90% presales already achieved.
The development pipeline is being funded through a combination of shareholder and third-party funding. As at 31 March
2025, the V&A had R3.75bn in committed third-party facilities, including R3.5bn in green loans. R1.16bn was undrawn
at the reporting date.
GIP
With c. R8.4bn 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 an ownership
stake of 15% to 20%. Additionally, through our investment in the management entities, we earn asset management fees
from both funds and property management fees from GHPH. Combined, these income streams contribute c. R200m gross
(before expenses of dedicated team) per year to our distributable income.
GSAH successfully raised a R450m term loan with a five-year term tenor and a bridge facility of R335m to fund the
development of Howard College Student Accommodation.
GHPH successfully concluded a Common Terms Agreement with local banks to raise R950m in term loans and revolving
credit facilities, with maturities ranging from three to five years. This funding is intended primarily to repay the historical
US$60m loan received from the IFC and to fund new developments.
INTERNATIONAL PORTFOLIO
GOZ maintained high occupancy levels and a long weighed average lease expiry across its directly held portfolio of high-
quality office and industrial assets. GOZ announced their final FY25 distribution on 20 June 2025 and it remained
unchanged at A$20.3 cps, comprising the forecast A$18.2 cps and the previously announced A$2.1 cps one-off distribution
included in the HY25 distribution.
Lango Real Estate Limited (Lango) is contractually required to list on a recognised exchange and is targeting a listing on
the London Stock Exchange by June 2026. A detailed roadmap has been developed, outlining the necessary regulatory
requirements and processes which is being continuously reviewed and refined. At HY25 Lango internalised its asset
management function for USD60.3m (R1.1bn) with Lango Real Estate Management Limited (Lango Manco), of which
USD18.3m (R341.5m) is attributable to Growthpoint after taking into account our effective shareholding. The
internalisation terminated the management agreemenent with Lango Manco and resulted in a termination payment, with
the consideration structured through the issuance of an instrument convertible into shares in Lango.
GOZ, GWI and NRR 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
Investor and bank appetite for Growthpoint funding remains strong, indicating that funding could be raised at highly
competitive spreads across a range of tenors to the extent required. However, there was no requirement to obtain
additional funding during the period as our strategic focus remained on reducing overall debt levels.
Total nominal SA debt reduced from R40.2bn at HY25 to R39.1bn. This reduction was primarily driven by the settlement
of the R240m GRT25G listed bond, a USD20m IFC loan repayment as well as the repayment of R500m in previously utilised
facilities. This reduction was partially offset by the depreciation of the Rand against the Euro and US Dollar. Notably, no
new debt was issued during the period.
The weighted average term of our liabilities decreased slightly to 3.5 years. Our weighted average Rand cost of funding
improved from 9.6% at FY24, to 9.2% at HY25 and is currently at 9.1%, reflecting a reduction in base rates from 7.8% to
7.6%.
Including cross-currency interest rate swaps (CCIRS) and foreign-denominated loans, the cost of funding declined
modestly from 7.2% at HY25 to 7.1%. This was driven by lower South African and Eurozone base rates, partially offset by
the refinancing of maturing A$ CCIRS's at higher rates. We have hedged 71.8% of the interest on our direct interest-
bearing debt and 69.7% of our CCIRS exposures, with a weighted average hedge term of 1.7 years.
Rand interest rate swaps totalling R1.5bn matured during Q3 FY25 at a weighted average rate of 7.8% and were not re-
hedged. An additional R950m is scheduled to mature over the remainder of FY25 at a weighted average rate of 6.6%.
A$100m CCIRS's matured at a weighted average rate of 0.8%. A$50m was refinanced on a floating rate basis for a three-
year term and required additional liquidity of R9m. A$50m was refinanced at a fixed rate of 1.5% for a period of three
years utilising the positive foreign currency mark to market to achieve a lower fixed rate. No further A$ CCIRS's are
maturing in the remainder of FY25.
R294m of USD/ZAR CCIRS's at a weighted average rate of 9.3% (including margin), relating to the IFC funding for GHPH,
matured during January 2025. These were not re-hedged and USD20m was repaid to the IFC. GHPH raised funding from
local banks directly on its balance sheet.
$30m ZAR/USD CCIRS will mature before FY25 at a fixed rate of 5.7% (including margin).
We continue to monitor our interest rate hedging closely, maintaining flexibility in response to changing market
conditions. Looking ahead, shifts in global interest rate expectations and geopolitical developments may affect the
direction of swap rates and inform our hedging decisions. We remain committed to managing interest rate risk prudently
and will continue to assess opportunities to optimise our hedging position in line with market developments.
The exchange rates for the FY25 dividends anticipated 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 insight,
technology and operating conditions, we are constantly advancing our environmental sustainability strategy. This
includes setting new targets and revisiting existing ones.
We remain focused on improving energy recovery through smart metering, setting targets for net-zero buildings and
expanding our renewable energy capacity. These initiatives will help to significantly reduce greenhouse gas emissions
and enhance the resilience of our buildings.
Growthpoint's e-CO2 programme and its Power Purchase Agreement (PPA) with Etana Energy (Pty) Limited will play a
crucial role in advancing our sustainability targets and carbon neutrality goal by 2050. The e-CO2 benefit scheme enables
tenants to access certified renewable energy via wheeling, reducing Scope 2 emissions and supporting tenant's ESG
goals.
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.
The total installed PV capacity at our properties at the beginning of FY25 was 40.7MWp and we are well on track to
exceed 60MWp by FY25.
Our commitment to transformation is evident from retaining our level 1 B-BBEE rating for FY25.
CHANGES TO THE BOARD
Prudence Lebina has resigned as a Non-Executive Director effective 31 July 2025. Prudence has resigned to focus on her
executive responsibilities.
Growthpoint thanks Prudence for her dedicated service to the Company during the past five years and wishes her well
in her future endeavours.
CONCLUSION
Despite a decline in the Business Confidence Index in Q2 2025, as reported by RMB/BER on 4 June 2025, several positive
local developments have supported our operational performance. These include longer periods without load shedding
and a favourable interest rate outlook.
The South African Reserve Bank has lowered the repo rate by a cumulative 100 basis points since FY24, following a
marked drop in inflation to the lowest in over three years. The Reserve Bank of Australia has reduced their cash rate by
a total of 50 basis points since December 2024.
All three of our domestic portfolios showed improved performance. We have a strong set of initiatives, both innovative
and established, in place to keep improving the quality of our portfolios and underlying operational metrics. GIP is
performing as expected. The V&A continues to exceed expectations, supported by the benefits of increased tourism and
consistently effective asset management that has successfully unlocked the precinct's many opportunities. Our
international investments are expected to continue performing in line with guidance.
At HY25, we reported distributable income per share (DIPS) growth of 3.9%, compared to the initial FY25 guidance of a
decrease in DIPS of 2% to 5%. Accordingly, on 12 March 2025 we updated our FY25 guidance to DIPS growth of 1% to 3%.
We now provide a further update to FY25 guidance to DIPS growth of 2% to 3%. This is primarily driven by improved
performance and strengthening property fundamentals in South Africa, including continued outperformance by the V&A
Waterfront, and lower interest rates, partially offset by lower offshore income due to the sale of C&R.
Growthpoint will release its full-year results for the year ending 30 June 2025 on Wednesday, 10 September 2025.
This information is the responsibility of the Directors and has not been reviewed by our external auditors.
MANAGEMENT CALL
A Q&A call with management will be hosted by SBG Securities at 16:00 South African time on Thursday 26 June 2025.
Please use the below link, email thato.makotwane@sbgsecurities.com and dferreira@growthpoint.co.za to register:
https://events.teams.microsoft.com/event/a9dfe1a5-f2a5-4897-84c3-d24ed0d91f35@7369e6ec-faa6-42fa-bc0e-
4f332da5b1db
26 June 2025
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: 26-06-2025 07:05:00
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