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Growthpoint Healthcare makes strategic move into senior living

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Growthpoint Healthcare makes strategic move into senior living with Auria acquisition

Growthpoint Healthcare Property Holdings (GHPH), managed by Growthpoint Investment Partners, the fund management business of Growthpoint Properties (JSE: GRT), South Africa’s leading real estate investment trust (REIT), has entered into an agreement to acquire the properties and operations of Auria Senior Living, a premier developer, owner and operator of senior living communities in South Africa.

With property assets valued at R2.4 billion (including minority interests) the proposed transaction would initially add four Auria senior living communities to GHPH’s growing portfolio of healthcare and wellness properties, marking its formal entry into the senior living sector. The transaction remains subject to the usual regulatory approvals.

As part of the proposed acquisition, Auria will continue to operate under its current leadership team and brand, with no changes to day-to-day operations, staff or resident services. Continuity and strategic alignment are reinforced by Auria’s executives taking up shares in GHPH.

A leader in South African senior living, Auria’s current operations span three communities in Johannesburg – San Sereno in Bryanston, Melrose Manor in Melrose and Royal View in Sandringham – and Woodside Village in Rondebosch, Cape Town. The communities comprise more than 900 residents across over 630 independent living units and some 110 care centre units. It has more than 1,600 individuals on its waiting lists. Auria’s high-quality residential environments are integrated with healthcare and lifestyle amenities. Designed to promote well-being, security and independence, offer a full continuum of care from independent and assisted living to specialised support services

Auria also has a pipeline of developments, including Coral Cove in Salt Rock, KwaZulu-Natal which is scheduled to be complete and fully operational in the first quarter of 2026, as well as greenfield and brownfield opportunities that GHPH intends to commence.

As South Africa’s first fund to invest exclusively in healthcare and wellness real estate, GHPH has built a resilient portfolio of licensed healthcare facilities, including acute, day and specialist hospitals, laboratories and biotechnology assets such as pharmaceutical manufacturing and warehousing facilities. The fund’s mandate is to acquire and develop healthcare properties – whether building new facilities, expanding or upgrading existing ones or acquiring operational assets to unlock operational and growth capital for their operators. The recent expansion of its mandate to include senior living will see GHPH allocating further capital to this sub-sector.

GHPH’s portfolio includes seven operational hospitals, a pharmaceutical warehousing and distribution facility, and a medical chambers property. Its licensed healthcare assets are operated by some of the continent’s leading providers, including Netcare, Medi-Clinic, Adcock Ingram and Busamed, and feature several of the country’s top specialist hospitals, such as Cintocare, Gateway, Hillcrest and the Johannesburg Eye Hospital.

The Auria acquisition would take GHPH’s assets under management to around R6.2 billon. It already ticks all the boxes for a future IPO and stock exchange listing.

George Muchanya, Head: Growthpoint Investment Partners, says, “Senior living is an emerging institutional asset class, both locally and globally. GHPH’s focus on healthcare real estate makes it a natural investment. As South Africa’s population ages, the need for well-run, people-centred communities is expected to rise. Auria is a national leader in senior living with continuing care and aligns seamlessly with GHPH’s purpose to enable world-class healthcare and wellness infrastructure to meet the needs of South Africans.”

Fairvest leads the REIT sector into digital infrastructure

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Fairvest leads the REIT sector into digital infrastructure, enhancing its traditional retail property assets

Fairvest Limited announced more details of its R486 million strategic investment in Onepath Investments, an owner of digital infrastructure assets. Fairvest intends to utilise this investment to enhance its traditional retail properties synergistically, underscoring its credentials as an innovator and incubator for emerging property trends.

 Fairvest CEO, Darren Wilder, said: “Globally, the returns from digital assets underpin some of the best-performing REITs, benefiting from growing structural demand that is not tied to economic cycles. In addition to attractive direct returns, Fairvest’s investment provides us with opportunities to enhance the lives of communities surrounding our retail centres, opens up new areas for expansion, and allows us to engage more deeply with communities, collect data, improve our marketing efforts, and drive foot traffic to our centres.”

South Africa continues to experience an enormous increase in demand for reliable and fast internet. Fibre is the best technology for consumers to access the internet, offering a combination of speed, reliability, and low latency. However, the cost of infrastructure has historically been a limiting factor. There are an estimated 10 to 15 million homes in South African townships, with households earning less than R5 000 per month, whose internet needs are currently inadequately serviced mainly by mobile operators through more expensive and less effective connectivity.

Fairvest’s investment in Onepath Investments (OPI) has funded the acquisition of fibre and related infrastructure leased to fibertime™, a proven fibre network operator and internet service provider, catering specifically to South Africa’s township market. fibertime™’s pay-as-you-go model offers fast fibre internet (uncapped 100Mbps) for only R5 per device per 24 hours and includes free equipment and installation.  Through this investment, Fairvest, through OPI, has enabled fibertime™ to provide fast, uncapped pay-as-you-go internet connectivity to lower LSM customers and communities, helping to unlock the untapped potential of South Africa’s township fibre market. fibertime™ aims to reduce costs, enabling more people to access the internet, and in the process, help entrepreneurs build large businesses that can create job opportunities for thousands of young people in townships. In the last three years, fibertime™ has successfully rolled out affordable fibre to more than 200 000 homes in townships and low-income areas nationwide in South Africa.

Fairvest CEO, Darren Wilder, said: “The investment aligns closely with Fairvest’s core retail strategy and target market of serving low-income, high-density communities in under-serviced areas. Serving communities with cost-effective digital access and data solutions is transformative in improving educational and employment outcomes, fostering entrepreneurship, creating business opportunities, and reducing income inequality. As these communities do better, it also enhances Fairvest’s core retail market.”

 Fairvest’s announcement follows its pre-close presentation last week, where the Company lifted its guidance for annual distribution growth per B share to above 10%. Previously, the Company guided for distribution growth of 8%-10%. The increase is due to a substantial improvement in property fundamentals with positive rental reversions of 5.0% (Mar ‘25: 4.3%), and a weighted average built-in escalation of 6.7% (Mar ‘25: 6.6%). The Retail portfolio, representing 71% of the total portfolio by revenue, has demonstrated markedly lower vacancy, a strong improvement in rental reversions, and an increased WALE. The Office portfolio (18% of the total portfolio by revenue) was resilient, continuing to reduce vacancy and increase average gross rentals, while maintaining built-in escalations at 7%. Office WALE reduced modestly. Industrial assets comprise 11% of the total portfolio. Vacancy increased in the industrial portfolio, primarily due to one property; however, the portfolio demonstrated notable improvements in rental reversion, average gross rental per square metre, and built-in escalations. Fairvest’s loan-to-value is expected to be below 30.0% by year-end.

Wilder ended: “Fairvest’s traditional portfolio is positioned for solid growth. Additionally, OPI’s digital infrastructure business is well-positioned for rapid expansion. fibertime™’s potential target market in South Africa is enormous, and to date, all acquisitions have outperformed the projected take-up levels. We are excited about this investment, which has such potential, and expect its strong performance to continue.”

 

SA REITs extend 2025 rally with solid August performance

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Sector posts 2.4% monthly gain, year-to-date return climbs to 14.2% as investor confidence and capital flows return to listed property

South African Real Estate Investment Trusts (REITs) maintained their positive trajectory in August, gaining 2.4% and lifting the year-to-date return to 14.2%, according to the SA REIT Association’s August 2025 Chart Book. Although this lags the broader equity market’s 23.6% return so far this year, the performance remains impressive against a higher base created in 2024, when SA REITs delivered an exceptional 35.8% return compared with 13.4% from equities.

“The recovery in listed property has been broad-based and underpinned by a constructive global interest rate environment,” said Ian Anderson, Head of Listed Property and Portfolio Manager at Merchant West Investments and compiler of the Chart Book. “Lower bond yields are reducing the cost of debt, while strong share price gains are lowering the cost of equity capital. Together, these trends are giving the sector renewed financial flexibility.”

Capital raises signal renewed growth appetite

The improved backdrop has seen several REITs pursue both acquisitions and capital raising activity. Dipula announced the R478.1 million acquisition of Protea Gardens Mall and raised R559 million in early September through an accelerated bookbuild. Fairvest also secured investor support, raising R976 million to support acquisitions in KwaZulu-Natal and the Western Cape.

According to Anderson, these moves mark a turning point. “After several years in which raising equity was costly and limited, companies are once again able to raise sizeable amounts at attractive levels to fund acquisitions.” he said.

Trading updates show encouraging growth guidance

Dipula, Equites, Octodec, Redefine and Spear all provided trading updates to the market in August. While acknowledging muted domestic economic growth, management teams expressed optimism about their businesses’ prospects. Guidance included distributable income growth per share of 4% to 6% for Dipula (FY25), 5% to 7% for Equites (FY26), 3% to 6% for Octodec (FY25), 3% to 5% for Redefine (FY25) and 4% to 6% for Spear (FY26).

“These growth rates may appear modest by historical standards but given how scarce earnings growth has been across the sector in recent years, they are very encouraging,” said Anderson. “Investors have taken note, which explains part of the strong price gains over the past 18 months.”

Portfolio reshaping and results highlights

Growthpoint announced significant leadership changes, with Estienne de Klerk succeeding Norbert Sasse as Group CEO from July 2026 and José Snyders joining as Group CFO in January 2026. The company also disposed of its Capital & Regional stake, realising £50.5 million to strengthen its balance sheet and pursue select opportunities.

Accelerate Property Fund advanced its balance sheet strategy with the sale of the Buzz Shopping Centre and Waterford Centre in Fourways for R215 million, aligning with its broader portfolio repositioning objectives.

Resilient delivered a strong set of interim results for the six months ended 30 June 2025, declaring an interim dividend of 245.72 cents per share, up 12.2% on the prior year. The group reported like-for-like net property income growth of 8.6% across its South African portfolio, as well as double-digit income growth from both Lighthouse Properties and its French shopping centres. Management had guided expectations well, with the 2.3% share price gain in August broadly in line with the sector.

Outlook: Sustained double-digit returns within reach

With valuations more conducive to raising capital and a pipeline of acquisition opportunities emerging, activity levels in the sector are expected to accelerate into late 2025 and 2026. External growth through acquisitions has historically been a strong driver of returns. This is once again on the horizon.

“The sector is now well positioned to deliver distributable income growth above inflation over the medium term,” said Anderson. “Combined with attractive income yields, this should enable listed property to provide investors with double-digit total returns, even after the strong gains of 2024 and early 2025.”

Vukile extends its consistent strong operational performance

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Vukile Property Fund (JSE: VKE), the leading specialist retail real estate investment trust (REIT), delivered a strong pre-close trading update for the five months from 1 April to 31 August 2025, confirming it is confidently on track to meet its full-year guidance of at least 8% growth in funds from operations (FFO) and dividends per share (DPS).

Operational strength is evident across Vukile’s portfolio of well-located, high-performing shopping centres, which are designed and managed around the customers and communities they serve. Driving positive momentum is the active integration of recently acquired assets in Spain and Portugal, with both Iberian portfolios delivering outstanding metrics, supported by top-tier performance from the South African portfolio.

Through its 99.5%-held Spanish subsidiary Castellana Properties, Vukile acquired its fifth Portuguese asset, Forum Madeira, for EUR63 million at a yield of 9.5% in April 2025. The transaction places 65% of the group’s more than R50 billion of assets, and 60% of its net property income, offshore.

“We signalled to the market that our operational priority was integrating, optimising and unlocking value from our newly acquired Iberian assets. Significant progress has already been made, including the alignment of processes and data management, allowing the Castellana team to start implementing their expertise in value-add asset management initiatives,” confirms Laurence Rapp, CEO of Vukile Property Fund.

The Iberian portfolio demonstrated significant strength. Occupancy across the portfolio is 99%. Positive rental reversions totalled 3.4% — 2.8% in Spain and 6.17% in Portugal. Sales grew 5.7% in Spain and 4.1% in Portugal, or 5.1% in total, with footfalls up 3.0% across the board.

In the South African portfolio, all key metrics improved or remained in line with the prior period’s excellent results. Like-for-like net operating income grew 8% and vacancies remained below 2%, reflecting sustained high occupancy and strong demand for Vukile’s retail space across all segments. Vukile reported positive rental reversions for the fourth consecutive year, which are now growing at around 1.6%, with 83% of leases agreed at positive or flat rental levels. Portfolio trade and footfalls increased, led by township and rural malls. Vukile successfully reduced its cost-to-income ratio yet again, to 13%, led by additional solar PV installed and targeted cost efficiencies.

Vukile continued to enjoy excellent support in the local debt capital market, with its R500 million bond issuance in August 2025 six-times oversubscribed and 21 investors participating. It achieved the lowest margins since the DMTN programme launched in 2012. In addition, GCR upgraded Vukile’s credit rating to AA+(za) with a stable outlook.

“Vukile has commenced FY26 with robust and sustainable operational and financial strength. We remain open for business with an early-stage pipeline of deal opportunities, which will be subject to our disciplined capital allocation ensuring the deals we do are both strategically aligned and financially accretive,” says Rapp.

Vukile Property Fund will update the market with revised guidance when it reports results for the six-month interim period to 30 September, on 26 November 2025.

Growthpoint exceeds upper end of distributable income per share

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Growthpoint exceeds upper end of distributable income per share forecast and sees stronger growth ahead

Growthpoint Properties Limited (JSE: GRT) delivered results exceeding the top-end of its guidance for the financial year ended 30 June 2025, reporting distributable income per share (DIPS) of 146.3cps, up 3.1% from the prior financial year, and a total dividend per share (DPS) of 124.3cps, an increase of 6.1%.

Growthpoint’s return to growth comes a full year earlier than initially expected.

Growthpoint entered the 2025 financial year (FY25) forecasting an earnings contraction of -2.0% to -5.0%. Better-than-expected half-year results, driven mainly by improved performance from the South African portfolio, better finance cost expectations and outperformance from the V&A Waterfront, marked a turnaround and Growthpoint upgraded its guidance to positive growth of between 1.0% and 3.0%. A further upgrade in June 2025 tightened the guidance range at the upper end of between 2.0% and 3.0%.

The same factors contributing to Growthpoint’s half-year outperformance, cemented its positive performance in the second half.

Norbert Sasse, Group CEO of Growthpoint Properties, comments, “This strong set of results shows that Growthpoint has done well to exceed expectations and deliver solid earnings growth while executing our strategic priorities. The progress made in further strengthening our SA portfolio is evident in its improved performance. The V&A Waterfront once again delivered stand-out results. Streamlining our international investments has simplified our capital structure and equity story, and disciplined treasury management kept finance costs below expectations.”

 The watershed year also resulted in Growthpoint upgrading its payout ratio to 87.5% for the second half. Together with the 82.5% payout ratio for the first half, Growthpoint’s payout ratio for the full year is 85.0%.

Shifting its outlook from cautious to optimistic, Growthpoint will maintain its payout ratio at 87.5% for the 2026 financial year (FY26). The reset to the higher payout ratio reflects Growthpoint’s strong balance sheet, effective strategy execution and disciplined capital management leading to positive momentum in SA property values and operations and a simpler international investment capital structure. Growthpoint’s strong position is further reinforced by the tailwinds of decreasing interest rates and a growth phase taking shape in the property cycle.

FINANCIAL PERFORMANCE

 Growthpoint delivered rewarding financial results in the face of ongoing external pressures. Total property assets stand at R155.8bn compared to R166.2bn for the 2024 financial year (FY24), with strategic disposals to optimise the international investment portfolio being the main factor contributing to the 6.3% decrease. The Group SA REIT loan-to-value (LTV) ratio decreased to a conservative 40.1% from 42.3% at FY24, while the interest cover ratio (ICR) improved to 2.5x. Growthpoint retains strong liquidity, with R0.9bn in cash and R4.7bn in unutilised committed debt facilities and enjoys excellent access to funding at attractive margins.

Finance costs in SA decreased, stemming from lower average borrowings compared to FY24 and a lower weighted average cost of debt in FY25 of 8.9% (FY24: 9.6%), and 6.9% (FY24: 7.2%) when including foreign exchange instruments.

“LTV ratios, linked to valuations, have now stabilised. Growthpoint remains committed to balance sheet resilience and liquidity for the long term, underpinning our continuing access to competitive funding and maintaining financial flexibility,” notes Sasse.

STRATEGIC PRIORITIES

 Growthpoint has a diversified portfolio and defensive income streams. It successfully advanced its strategic initiatives to improve the quality of its SA portfolio including driving sustainability initiatives towards the goal of carbon neutrality by 2050, and to optimise its international investments.

Improving the quality of the directly held SA portfolio of logistics and industrial, office and retail properties, Growthpoint is focused on disposals, developments and targeted investments.

Over the past decade, it has trimmed asset numbers in the portfolio from 471 to 328, reducing gross lettable area by 18.9%. While the property count has reduced, the core SA portfolio has been significantly improved with quality income streams. In FY25, Growthpoint disposed of 25 non-core (including trading and development) properties for R2.5bn at a R37.9m profit to book value and invested R1.6bn in value-adding development and capital expenditure.

As a result of its portfolio enhancement over the past decade (from 1 July 2016), Growthpoint has strategically grown its logistics and industrial assets from 15.0% to 20.0% of the total SA portfolio value. To achieve this, it reduced property numbers from 247 properties totalling 2.2m square metres gross lettable area (GLA) to 143 properties just shy of 1.8m square metres, selling primarily older industrial and manufacturing facilities while increasing its exposure to modern logistics warehouses, which are now nearly half of the portfolio, and to better performing nodes.

It also reduced its office exposure from 46.0% to 40.0% of portfolio value, streamlining the portfolio from 186 properties to 146 or 1.6m square metres of GLA, by reducing exposure to B‑ and C‑grade assets and those in non-core business nodes and aligning its office assets more closely with modern business aspirations and operational needs.

Retail property assets remained a steady 39.0% of the total portfolio value, but the number of retail properties has nearly halved from 61 to 32 and now spans 1.1m square metres of GLA. The shift has seen Growthpoint exiting non‑core retail in declining nodes and central business districts, and smaller, niche segments such as motor dealerships. At the same time, extensive redevelopments and upgrades at all its long-hold shopping centres have resulted in a more focused, modern and relevant retail portfolio.

Optimising its international investments, Growthpoint simplified and enhanced its capital structure and equity story by disposing of its entire stake in C&R to NewRiver REIT (NRR) in December 2024, receiving R1.16bn cash and a 14.2% stake in NRR, using proceeds to reduce debt. Post-year-end, Growthpoint disposed of its entire NRR stake at a market premium price of 75.0pps raising gross sale proceeds of R1.3bn thereby exiting its investment in the UK while bolstering its balance sheet and liquidity position.

Growthpoint continues to evaluate options to maximise value from its 29.6% stake in Globalworth Real Estate Investments (GWI), where it is supporting value-unlock initiatives. Progress is being made with constructive discussions amongst the shareholders in respect of the future strategy for the company.

The 63.6% stake in Growthpoint Properties Australia (GOZ) remains core.

Growthpoint owns 15.7% of Lango Real Estate Limited (Lango) which internalised its asset management function and was redomiciled to the UK during the year. Growthpoint now classifies its investment in Lango as an international investment, and no longer as part of Growthpoint Investment Partners (GIP).

SOUTH AFRICAN PORTFOLIO

 In SA, Growthpoint owns and manages a R66.7bn diversified core portfolio of retail, office, logistics and industrial, and trading and development properties, representing 50.1% of Growthpoint’s total asset book value. This portfolio contributed 51.2% of DIPS.

Rental renewal growth improved materially while vacancies reduced moderately, and like-for-like net property income (NPI) grew at 5.9%. Arrears remain firmly in check. Together, these improving metrics signal positive momentum, and all three of the portfolios are showing like‑for‑like growth. The SA balance sheet is robust, with conservative leverage at 34.5% (FY24: 35.4%) providing capacity to grow decisively.

The SA portfolio value increased 2.2% or R1.4bn, driven by disciplined capital recycling with proceeds from its R2.5bn in assets sales (R2.7bn including R120.0m for Fountains View sold to Growthpoint Student Accommodation Holdings) fuelling reinvestment and targeted development to improve the portfolio quality.

The office portfolio delivered the most pronounced improvement in the SA portfolio, achieving a meaningful turnaround in like-for-like NPI from -1.0% to +6.8%, driven by steady letting and disciplined cost and recovery management. Vacancies reduced to 14.6% with a sharp improvement in rental renewal growth from -14.8% to -3.2%, and over half of leases were signed at equal or higher rentals. For the second year, the office portfolio printed positive valuation growth of 1.9%.

While oversupply persists in the broader office market, Growthpoint’s results signal a clear positive trend and more improvement ahead, although potentially uneven as significant offices leases were renewed post year-end with negative reversions which will have an impact on the sector’s FY26 renewal growth rate. Growthpoint curates its office portfolio to accommodate modern businesses and concentrates its assets in high-demand areas. It completed the Longkloof mixed-use precinct development in Cape Town, including the Canopy by Hilton hotel. Growthpoint’s net-zero carbon redevelopment at 36 Hans Strydom for Ninety One on a 15-year lease, is well progressed and set for completion later this year.

 The logistics and industrial portfolio delivered the strongest performance. Vacancies reduced and were contained to only a few properties. The two vacancies at new speculative developments at year-end are now fully let. Encouraging demand signals vacancies are likely to decrease even further. Like-for-like NPI increased 5.5% and the portfolio value, which remains conservative, grew by 3.1%. Rental escalations, both in-force and on renewal, are trending upwards, with 59.0% of new and renewed leases signed at the same or higher rentals. High-quality developments have strengthened the portfolio, including new units at Centralpoint and the second phase of Arterial Industrial Estate.

With fewer properties of better quality, nearly half of which are logistics and warehouse properties, this portfolio has evolved into a more focused, higher-performing selection of assets. The portfolio metamorphosis is set to continue, with a strong pipeline of demand-aligned speculative developments.

The retail portfolio delivered a solid performance, marked by like-for-like NPI growth of 5.3% and consistently low core vacancies of 4.4%. Portfolio value increased 2.2%, supported by value-adding upgrades improving the portfolio quality through expansions, redevelopments, tenant mix enhancements, consumer-focused updates and solar installations, as part of the ongoing portfolio repositioning supported by recycling capital. These highly targeted asset management interventions are driving rental upside.

Retail fundamentals in the portfolio continued to improve, with footfall growing and trading density increasing at 4.8%, outperforming the Clur benchmark. Community centres led annual trading density growth by type (7.6%) while Western Cape shopping centres outperformed by region (5.3%). Top-performing retail categories for trading density growth included non-discretionary food (8.2%), department stores (6.8%) and homeware, furniture, and interiors (7.0%).

SA trading and development is delivered by the in-house Growthpoint Trading & Development division, which creates value through internal delivery of new developments for Growthpoint’s balance sheet and has an external mandate to earn third-party development fees and trading profits. This year it concentrated on industrial and retail developments that strengthen long-term portfolio quality while third-party projects played a smaller role. The division earned R51.6m (FY24: R42.2m) of trading profits and R3.1m (FY24: R25.4m) of NPI, but no development fees (FY24: R9.8m). FY26 represents a new cycle of third-party developments commencing when the landmark Olympus Sandton residential towers, which is being undertaken in partnership with Tricolt within Growthpoint’s Sandton Summit mixed-use precinct, breaks ground later this month.

Sustainability is integrated across Growthpoint’s business. As an innovator in this space, Growthpoint is making measurable progress against its goal to achieve net-zero carbon emissions across its portfolio by 2050.

Scaling practical and smart solutions for energy saving while expanding renewable energy generation, Growthpoint has cumulatively spent R1bn on installed solar, with 80 plants and a PV capacity of 61.2MWp placing it on par with a commercial-scale renewable utility.

Growthpoint’s innovative e-co₂ solution will deliver certified green electricity at cost-saving fixed escalations directly to its tenants at 10 of its Sandton office buildings next month (October 2025). It is anchored by a 195GWh power purchase agreement with Etana Energy, signed in 2023, drawing on hydro, wind, and solar supply equal to 32.0% of Growthpoint’s energy consumption for its 2023 financial year.

The first electrons of e-co₂ renewable electricity will be wheeled from October 2025 via the national grid from the Boston Hydroelectric Plant in the Lesotho Highlands Water Scheme, developed in partnership with Serengeti Energy. E-co₂ provides tenants with three benefits: certified zero-carbon electricity, blockchain registered Renewable Energy Certificates (RECs) that can be used as verified proof of Scope 2 carbon emission reductions or traded on global renewable energy markets, and cost-saving fixed escalations.

Growthpoint is driving water resilience and waste reduction through targeted programmes designed to cut intensity across the portfolio. Over the next three years, it projects saving 89.4 megalitres of water. This year, it diverted 43.0% of waste from its properties from landfill and is on track to reach 50.0% next year. Its water resilience infrastructure continues to grow, with 40 registered boreholes and 162 backup facilities providing nearly 10,000 kilolitres of storage capacity.

Growthpoint is a Level 1 B-BBEE contributor and invested R58 million in corporate social responsibility during the year, with a strong focus on its flagship education projects. Its social investment directly benefitted 7,316 individuals, while enterprise development initiative Property Point sustained 216 jobs.

“With deep specialist expertise and our significant portfolio, Growthpoint is advancing our ESG commitments and reshaping how real estate investment delivers environmental and social returns,” says Sasse.

V&A WATERFRONT

Growthpoint’s 50.0% interest in the V&A Waterfront in Cape Town has a property value of R13.3bn, which makes up 10.0% of Growthpoint’s total asset book value and contributed 16.3% to DIPS. Once again, the V&A delivered excellent performance. NPI increased 10.4% even with the Lux Mall and The Table Bay hotel temporarily undergoing value-adding redevelopment. Growth was driven by a full year of trading from newly introduced operational businesses in the hotel sector as well as those that opened during the year, the income activation of the Union Castle building in December 2024 and a strong cruise season. Vacancy is negligible, holding steady at 0.3%. Like-for-like NPI grew 12.7%.

NPI from operating businesses, where the V&A enjoys both the rewards and risks of a revenue-sharing model versus the traditional pure-rental model, increased to 16.0% of NPI from 10.0% in FY24. The V&A now has three hotels with nearly 600 keys under operating agreements. The Radisson Red Hotel delivered standout growth. Increased tourism, reflected in 6.0% more international visitors arriving at Cape Town International Airport in FY25, drove turnover rental gains across hotels, attractions and retail. The V&A drew 24 million visitors.

Retail sales increased by 5.8% reaching over R10.0bn, with further upside ahead as the new 3,759m² Lux Mall is set for phased occupation post-completion in December 2025. Office NPI increased by 17.0% and like-for-like by 10.0% on the back of strong demand, near-zero vacancy, high renewal rates and modest rental growth. The marine and industrial segment saw increases across the board in cruise vessels visits, casual birthing and charter boats.

Hotels, residential and leisure increased NPI by 10.0% with like-for-like growth of 27.0%. The V&A’s hotels recorded 23.8% higher average daily rates, steady occupancy and increased overall revenue per available room. A new luxury hotel with branded residences will launch mid-2026. Residential vacancies remain low and construction on the new 5 Dock Road apartments began this year, targeting completion by December 2025.

GROWTHPOINT INVESTMENT PARTNERS

 Growthpoint’s alternative real estate co-investment platform, GIP, is 1.8% of Growthpoint’s total asset book value and contributed 3.8% to DIPS. It includes two funds distinct from Growthpoint’s core assets. Growthpoint Student Accommodation Holdings, operating under the Thrive Student Living brand, attracted R425m in new equity during the year. Growthpoint Healthcare Property Holdings expanded its mandate to include aged living and hospital-linked medical consulting rooms as it continues to drive scale. GIP closed the period with R8.6bn of assets under management, evenly weighted between the two funds.

INTERNATIONAL INVESTMENTS

 Growthpoint continues to optimise its international investment. On 30 June 2025, 38.0% of property assets by book value were located offshore, and 28.7% of its DIPS was generated offshore. Foreign currency income of R1.4bn (FY24: R1.6bn) reflected the streamlined capital structure achieved during the year.

GOZ, which invests in high-quality industrial and office properties in Australia, accounts for 23.2% of Growthpoint’s total assets by book value and contributed 20.4% to its DIPS. Growthpoint received a steady R1.0bn net distribution from GOZ. GOZ’s distribution decreased 5.2% to AUD18.2cps (FY:24: AUD19.3cps) which excludes a special distribution of AUD2.1cps distributed to compensate for the increased dividend withholding tax due to the sale of industrial assets. GOZ’s payout ratio for FY25 was increased to 87.0% from the prior year’s 80.7%.

GOZ maintained a strong balance sheet and reduced gearing from 40.2% to 39.7%. The directly owned GOZ portfolio performed well, with occupancy remaining high at 94.0% (FY24: 95.0%) and a 5.6-year weighted average lease expiry.

The year was marked by strong momentum in GOZ’s funds management business. GOZ divested its non-core holding in Dexus Industria REIT and established the AUD198 million Growthpoint Australia Logistics Partnership with TPG Angelo Gordon owning 80.0%. It also launched the Growthpoint Canberra Office Trust, which acquired a high-yielding, primarily government-leased, A-Grade office building in Canberra’s CBD. Despite this momentum, performance was tempered by increased costs, lower lease surrender fees and high exposure to Melbourne office assets. The local market continues to recover gradually with valuations under pressure due to policy headwinds and delayed interest rate cuts. Cap rates valuations are stabilising. GOZ issued FY26 distribution guidance of AUD18.4cps.

GWI, which invests in offices and mixed-use precincts in Poland and in Romania where it also develops logistics parks, represents 12.2% of Growthpoint’s total assets by book value and a 5.1% contribution to DIPS. GWI displayed fundamental improvement with stronger key metrics. The portfolio value increased by 0.8% to EUR2.6bn. The capital cities of Warsaw and Bucharest continued to outperform regional markets. Like-for-like NPI grew 6.0%, offset by higher interest costs due to the recent Eurobond refinance.

Gearing remains a low 38.0% and liquidity strong with EUR325m of cash on hand and EUR115.0m of undrawn debt. GWI’s improved financial strength is reflected in cash dividends replacing prior scrip payments, although distribution growth has yet to follow, with a 33.3% decrease in distribution per share to EUR14.0cps dampened by higher finance costs and the EUR5.9m impact of a new tax policy in Poland.

GWI continues to invest in its portfolio, including its current refurbishment of the 48,300m² Renoma mixed-use property in Poland. In Romania, it delivered and secured a 20-year lease on 5,900m² of the Craiova Logistics Hub.

Lango, which invests in prime commercial real estate assets in key gateway cities across the African continent (excluding SA), accounts for 1.7% of Growthpoint’s total assets by book value and made a 0.2% contribution to DIPS. Lango finalised the acquisition of USD200m of assets from Hyprop Investments Limited and Attacq Limited, further cementing its position as the premier African real estate investment vehicle north of SA. Growthpoint received R11.0m dividend income from Lango.

Growthpoint has exited its investment in the UK, selling its stakes in C&R and, post FY25, NRR. At year-end the investment in NRR represented 0.9% of total assets by book value, which made a 3.0% contribution to DIPS.

LOOKING AHEAD

 Growthpoint sees the property cycle entering a growth phase. Driving this positive shift are the improving performance from Growthpoint’s SA portfolio driven by strengthening property fundamentals, continued outperformance by the V&A, GOZ’s strong operational fundamentals and reduced interest rates.

Key metrics are improving consistently across all three SA sectors, supported by Growthpoint’s capital recycling strategy into higher-yielding opportunities with non-core SA asset sales of R3.5bn targeted for FY26. The V&A Waterfront is on track for double-digit growth. Reduced finance costs will continue to benefit the business.

On the international front, elevated capital costs domestically and globally, continue to constrain prudent investment growth.

For FY26, Growthpoint guides DIPS growth between 3.0% and 5.0% and DPS growth of between 6.0% and 8.0%, with a payout ratio of 87.5%.

“Growthpoint’s diversified portfolio and income streams, and its embedded sustainability, which are all constantly being improved by skilled leadership and dedicated teams, position it strongly for FY26. The positive momentum across the portfolio is clear, and it is being driven by operational resilience and strategic execution,” concludes Sasse, who will lead the business for one more financial year before handing over the Group CEO role to current SA CEO Estienne de Klerk on 1 July 2026.