<\/p>\n
Growthpoint Properties has reported a 4.3% increase in distributable income per share (Dips), from 146.3 cents to 152.6 cents for the 12 months ended 30 June 2026.<\/p>\n
The real estate giant attributed the growth to operational improvement in the South African sectors, an enhanced contribution from the V&A Waterfront and a \u201cmeaningful\u201d reduction in finance costs following interest rate reductions and a decrease in leverage on the SA balance sheet.<\/p>\n
The group\u2019s distributable income increased by 4.4% to R5.2 billion, while basic headline earnings per share decreased by 24.9% to 119.40 cents per share.<\/p>\n
Its offshore investments, including Growthpoint Properties Australia, Globalworth Real Estate Investments and Lango Real Estate, are currently delivering comparatively softer outcomes than the South African portfolio.<\/p>\n
Read:
Cape Town\u2019s V&A Waterfront is Growthpoint\u2019s \u2018standout performer\u2019
V&A launches R1.4bn retiree residential development
SA Reit chair says \u2018balance sheets are looking really good\u2019<\/p>\n
This is as a result of relatively higher interest rate environments, significant office exposure and more challenging leasing dynamics.<\/p>\n
\u201cIn Europe and the rest of Africa, performance is influenced by structural considerations, including our minority position in GWI and its relatively illiquid shares, while Lango continues to carry elevated US dollar debt,\u201d the JSE-listed real estate investment trust (Reit) said in a Sens on Wednesday.<\/p>\n
While these factors constrain near-term returns and capital flexibility, the investments continue to provide meaningful geographic and earnings diversification over the longer term.<\/p>\n
\u201cWe continue to assess their strategic positioning within the group and together with our partners and other stakeholders, evaluate alternative ownership, capital and operating structures that could unlock greater value and position these platforms for sustainable growth over time,\u201d the group added.<\/p>\n
SA highlights<\/p>\n
SA revenue (excluding trading and development revenue) increased by a marginal 0.5% to R8.3 billion. On a like-for-like basis, comparative growth was 4.1%.<\/p>\n
The result includes the impact of:<\/p>\n
Asset disposals during the year, including R3 billion of office assets, R1.3 billion of industrial assets and R568 million of retail assets.
\nDecreased vacancies across all three sectors, the completion of developments including the Arterial Industrial Estate, the redevelopment of Bayside Mall and Beacon Bay Retail Park and the introduction of the Longkloof Precinct Hotel<\/p>\n
V&A Waterfront highlights<\/p>\n
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The V&A Waterfront remains one of the group\u2019s highest quality income sources. It owns 50% of the world-class attraction.<\/p>\n
Like-for-like net property income at the V&A increased by 10.6%, supported by a healthy tourism market, increased footfall and positive economic momentum in the Western Cape.<\/p>\n
\u201cThese had a positive impact on retail densities, hotel occupation and growth in non-GLA (gross lettable area) spend,\u201d the Reit said.<\/p>\n
Growthpoint\u2019s 50% share of distributable income increased by 19% to R964 million.<\/p>\n
The result benefited from once-off profits in residential sales at 5 Dock Road, which more than offset the impact of closure of the Table Bay Hotel during its redevelopment.<\/p>\n
\u201cThe V&A Waterfront\u2019s development pipeline continues to support the long-term growth of high-quality income streams within a world-class precinct.\u201d<\/p>\n
Read: V&A launches R1.4bn retiree residential development<\/p>\n
As part of the group\u2019s strategy, it said its development and capital expenditure will continue to be focused on the stronger performing Western Cape province due to its more attractive property market fundamentals.<\/p>\n
Growthpoint outlook<\/p>\n
The group described South Africa\u2019s operating environment as showing greater stability, with tentative signs of improvement emerging across selected areas of the economy.<\/p>\n
However structural constraints, including unemployment, infrastructure challenges and global trade uncertainty, remain.<\/p>\n
International developments, including the ongoing conflicts in the Middle East, are expected to continue to have an unfavourable impact on inflation, interest rates, energy prices and economic activity across the markets.<\/p>\n
\u201cAgainst this backdrop, Growthpoint enters FY27 with improving South African property fundamentals, a stronger balance sheet and a portfolio increasingly positioned towards higher-quality and more resilient income.<\/p>\n
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\u201cOur priorities remain focused on disciplined capital allocation, tenant retention, active asset management, cost containment and continued investment in sustainable, energy-efficient properties,\u201d the Reit said.<\/p>\n
Read: South Africa \u2018stands out\u2019 for Growthpoint Properties<\/p>\n
The group said it intends to recycle between R2 billion and R3 billion of assets annually, subject to market conditions, acceptable pricing and disciplined execution.<\/p>\n
While disposals may create short-term earnings dilution, the proceeds are expected to support debt reduction, investment in higher-growth sectors and regions, and the development pipeline, thereby strengthening the portfolio\u2019s long-term earnings quality and resilience.<\/p>\n
Growthpoint added the South African portfolio is expected to benefit from improved vacancies, stronger tenant retention, longer lease commitments and healthy contractual escalations.<\/p>\n
Growthpoint share price<\/p>\n
Read: Growthpoint turns Ninety One\u2019s Cape Town HQ into a lower-carbon asset<\/p>\n
Hyprop performance<\/p>\n
Retail-focused Reit Hyprop delivered double-digit Dips growth of 11.7%, driven by strong operating results.<\/p>\n
The outcome for the year ended 30 June 2026, also released in a Sens on Wednesday, is in line with the upper end of its guidance.<\/p>\n
The firm\u2019s distributable income \u00a0was up R1.7 billion, a 13.7% improvement.<\/p>\n
The group\u2019s SA portfolio pulled a 4.9% increase in tenants\u2019 turnover, to R29.8 billion. Trading density was up 5.5% and the average monthly foot count was 7.3 million.<\/p>\n
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During the period under review, the group launched the first Walmart store in Africa at Clearwater Mall.<\/p>\n
Read: Over 85 000 shoppers came to Clearwater Mall on Walmart debut day, says Hyprop<\/p>\n
\u00a0<\/p>\n
Snapshot of Hyprop\u2019s financial statement. Image: Sens<\/p>\n
Hyprop\u2019s outlook<\/p>\n
Despite global economic volatility from ongoing geopolitical tensions, policy uncertainty, and evolving trade dynamics, Hyprop has also described South Africa\u2019s medium-term outlook as improving, supported by structural reforms in energy and logistics, creating a more stable environment for investment.<\/p>\n
\u201cInflation and interest rate risks may present short-term headwinds, but are expected to abate in time and we remain confident that our dominant, experience-led retail centres will continue to trade well during these times,\u201d Hyprop said.<\/p>\n
Read:
Hyprop raises R739m in oversubscribed JSE capital raise
Hyprop on track for double-digit earnings growth as vacancies tighten
Eastern Europe\u2019s remarkable 20-year property investment success<\/p>\n
It added Eastern Europe (EE) offers attractive risk-adjusted returns, supported by sound macroeconomics, rising wages and EU investment.<\/p>\n
\u201cProspects for our SA and EE portfolios remain positive, underpinned by dominant assets and resilient tenant and shopper bases.\u201d<\/p>\n
Building on the significant momentum of the last few years, the group anticipates an increase of 7-9% in distributable income per share from the 2026 financial year to 2027.<\/p>\n
Hyprop share price<\/p>\n
#Major #Reits #post #solid #earnings #growth #boosted #property<\/p>\n","protected":false},"excerpt":{"rendered":"
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