Leadership
Growthpoint Properties
Melbourne’s Botanicca Corporate Park in Australia
V&A Waterfront
For the period, the SA properties increased in value by R1.4bn, a valuation uplift of 2.2%. Valuation growth is an indicator of an improving market. In line with the REIT’s strategy to invest in growth areas, another R1.6bn of development and capex spend has been invested in the Western Cape.
Over the last decade Growthpoint has significantly transformed the SA portfolio. There’s been a material reduction in number of properties, down from 471 to 328. “We've got fewer properties, but bigger and better- quality properties,” says Estienne de Klerk , CEO of Growthpoint Properties SA.
Perhaps most telling are the strides made in the company’s performance over the last reporting period. Key metrics have improved and Growthpoint’s return to growth came a full year earlier than anticipated. Growth and drivers At the end of 2024, Growthpoint forecast negative growth of between -2% to -5%. But by the half-year things were looking up and guidance was changed to positive growth of between 1% to 3%. 2025 has proved to be what Growthpoint Properties Group CEO Norbert Sasse describes as “a bit of a turnaround year.” Ultimately, for the year ended 30 June 2025 the group achieved 3.1% growth in distributable income per share (DIPS) and declared a final dividend 6.1% higher than FY24. “The biggest drivers of results were the South African business, the V&A Waterfront and on the offshore side, Growthpoint Australia, (GOZ),” explains Sasse. Having sold its stake in UK-based Capital & Regional (C&R), Growthpoint’s international assets now comprise GOZ, and in Central Eastern Europe, Globalworth (GWI).
Outlook Growthpoint believes that the property cycle has bottomed out. The REIT projects DIPS growth of 3% to 5%. With an upgraded payout ratio of 87.5% Growthpoint expects dividend per share growth of between 6% and 8%.
Growthpoint’s Annual Results (for the year ended 30 June 2025) Group assets : R155.8bn. SA Portfolio : 50.1% V&A : 10% Offshore : 38% Fund management component (healthcare & student accommodation) : 1.8% Distributable income per share (DIPS): Up 3.1% Dividend per share (DPS) : 6.1% increase Group LTV (loan-to-value) : 40.1% SA LTV : 34.5% Group ICR (Interest cover ratio) 2.5x SA ICR : 2.9x Group vacancies : 8.1 % (SA 7.8%; V&A 0.3%)
Globalworth Tower in Bucharest, Romania
October 2025 | Issue 141 | Asset Magazine 245
244 Asset Magazine | Issue 141 | October 2025
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