Growthpoint Properties (GRT) investor relations material

Executive summary

• Focused on improving South African portfolio quality and disciplined asset disposals, targeting R3.5bn for FY26, with projected disposals of R5.1bn already achieved.

• Retail strategy prioritizes dominant, large-scale assets; logistics & industrial exposure increased via modern warehouse investments and capital recycling.

• International strategy aims to simplify investment structures and unlock shareholder value, with continued support for Growthpoint Properties Australia (GOZ) and Globalworth Real Estate Investments (GWI).

• Sustainability initiatives advanced, including solar PV installations, energy efficiency, and waste reduction, supporting net zero targets.

Financial highlights

• 21 assets sold and transferred for R2.0bn, with a profit of R2.7m to book value; further disposals post-period bring total projected FY26 disposals to R5.1bn.

• R792.9m spent on development and capital expenditure in SA, with major projects in Cape Town, Durban, and Goodwood.

• V&A Waterfront EBIT marginally ahead of prior year; retail sales up 5.1% year-over-year, footfall up 1.2%.

• GOZ refinanced AUD495m of debt, reaffirmed FY26 FFO guidance of AUD23.0–23.6cps and distribution guidance of AUD18.4cps.

• Total nominal SA debt decreased to R36.3bn; R1.8bn bond issued at record-low margins.

Outlook and guidance

• Distributable income per share (DIPS) for FY26 expected to grow 3.0%–5.0%; dividend per share (DPS) growth of 6.0%–8.0% with an 87.5% payout ratio.

• Guidance remains unchanged despite higher interest rates and inflationary pressures.

• V&A Waterfront anticipates double-digit distribution growth for FY26, supported by residential sales.