Growthpoint Properties (GRT) Q3 2025 TU earnings summary

Executive summary

• Guidance improved, narrowing expected growth to 2-3%, driven by stronger South African performance and V&A Waterfront outperformance.

• Focused on improving SA portfolio quality via targeted disposals and investments, with R2.8bn disposal and R2.2bn investment targets for FY25.

• International strategy centers on optimizing core investments and exiting non-core assets, including the sale of Capital & Regional plc for R2.4bn.

• Coastal regions, especially Western Cape and KZN, continue to outperform inland areas.

• All domestic portfolios showed improved performance, with GIP and V&A exceeding expectations.

Financial highlights

• CapEx program of ZAR 2.2 billion, with ZAR 1.2 billion spent in nine months, mainly on logistics, warehousing, retail, and solar PV.

• Distributable income per share (DIPS) guidance for FY25 updated to 2%-3% growth, up from initial guidance of a decrease.

• At HY25, DIPS grew 3.9% year-over-year.

• Asset disposals expected at ZAR 2.3 billion for the year, slightly below target due to transfer delays.

• V&A Waterfront maintains strong performance, with a ZAR 4-5 billion development pipeline.

Outlook and guidance

• FY25 DIPS growth now expected at 2%-3%, driven by improved SA performance and V&A outperformance, partially offset by lower offshore income.

• Expect continued investment in SA, with logistics and retail as key growth drivers.

• V&A Waterfront distributable income growth expected to remain in low double digits, but growth rate to moderate due to refurbishments.

• Interest rates in SA expected to decline further, supporting lower debt costs.

• Full-year results for FY25 to be released on 10 September 2025.