JSE-listed real estate investment trust Growthpoint Properties Group posted revenue of R6.6-billion for the six months ended December 31, 2025, a 2.4% increase from the R6.5-billion revenue recorded for the six months to December 31, 2024.

Distributable income for the six-month period under review increased by 2.1% to R2.6-billion, up from R2.5-billion in the interim period in the prior financial year. Distributable income per share (DIPS) increased by 2.3% to 75.7c, up from 74c in the prior comparable period.

Further, dividend per share (DPS) increased by 8.5% to 66.2c, up from the 61c interim dividend in the six-month period to end December 2024.

Solid growth in the South African sectors and a conservative South African loan-to-value ratio provided the platform for a measured increase in the payout ratio to 87.5% from 82.5%.

Net asset value (NAV) per share decreased by 2.2% to R19.45, from R19.88 at the end of June 2025.

The lower NAV was driven by the acquisition of Auria Senior Living by Growthpoint Healthcare Property, lower property values in Growthpoint Properties Australia and a stronger rand.

The group's investment property valuations, meanwhile, increased by R503-million, or 0.4% up from values reported for the full year at the end of June 2025.

Growthpoint expects DIPS for the financial year to June 30 to grow by between 3% and 5%, notwithstanding ongoing interest rate uncertainty, and dividend growth of between 6% and 8%, with a payout ratio of 87.5% for its 2026 financial year.

Meanwhile, its strategic priorities include improving the quality of its South African portfolio by decreasing the relative weighting of the office sector by exiting deteriorating business nodes and focusing retail exposure on large scale assets that serve growing and defensive market catchments.

Growthpoint is also pursuing a measured increase in exposure to the logistics and industrial sector rolled out by increasing exposure to modern logistics warehouses in growing nodes and recycling capital from older sub-optimal assets in deteriorating nodes, it says.

The logistics and industrial sector, benefiting from a more balanced supply-demand dynamic, is expected to continue to outperform other sectors.

“We continue to prioritise the growth of our investments in and exposure to the better-performing logistics sector with a strong development pipeline for modern logistics warehouses.”

The performance of the logistics and industrial portfolio include vacancies declining to 3.3% during the period under review, down from 4.1% at the end of their prior financial year, and realising average in-force escalations of 7.5%, which positively impacted the performance of the portfolio.

Additionally, Growthpoint has focused its development and capital expenditure on the stronger-performing Western Cape province owing to the more attractive property market fundamentals.

During the interim period, it invested R545.4-million of development and capital expenditure in the Western Cape, up from R945.4-million in the comparable six-month period to end December 2024.

Growthpoint also invested R34.5-million to upgrade La Lucia Mall, Durban, in line with its strategy to upgrade and reposition all long-term-hold retail assets.

WATER AND POWER
The group undertook initiatives to reduce its reliance on the national grid and to address water supply and security.

Growthpoint has installed solar capacity of 61.7 MW, up from 61.2 MW at the end of its prior financial year in June 2025. During the interim period under review, the company invested R42.9-million on solar power installations and has spent more than R1-billion on 84 solar plants for its properties to date.

The group also entered into a power purchase agreement with renewable energy trading company Etana Energy, which started wheeling renewable energy in October 2025 and provided 6.6 GWh of renewable energy in the interim period to end December 2025.

The Boston Hydroelectric plant, in the Free State that Growthpoint has a 30% stake in, achieved Grid Code Compliance on October 17, 2025.

The total energy consumption derived from renewable sources increased to 14.5% at the end of the interim period, up from 7.9% at financial year-end in June 2025.

Further, the company has 46 registered boreholes, up from 40 at the end of the prior financial year, and 178 water backup facilities, up from 162 at the 2025 financial year-end.

Meanwhile, the absence of loadshedding, easing inflation and a favourable interest‑rate outlook have materially supported business operations, Growthpoint says.

Strengthening electricity availability and ongoing recovery in logistics networks are contributing to more stable operating conditions, while the South African Reserve Bank's projected rate‑cutting cycle further enhances the investment environment.

“Our strategic priorities remain firmly anchored in maintaining balance sheet strength and advancing our environmental, social and governance commitments.

“In South Africa, we will continue to enhance the quality of our portfolio through disciplined capital allocation, proactive tenant retention, strategic asset repositioning and the acceleration of green building and renewable energy initiatives.

“We are also placing increased emphasis on sectors and regions demonstrating higher growth potential, as well as reducing costs.”

Further, asset valuations and loan-to-value ratios in the group have stabilised, and Growthpoint will continue to execute its strategic initiatives aimed at preserving liquidity and creating long-term balance sheet strength, it says.