<\/p>\n
You can also listen to this podcast on iono.fm here.<\/p>\n
JIMMY MOYAHA: Growthpoint Properties Limited released their group results for the financial year ended 30\u00a0June 2026. The business saw revenues top up over the R13.2\u00a0billion mark and we saw a loan-to-value ratio well within their ideal target of just below 40%.<\/p>\n
We are going to be taking a closer look at these numbers with the company\u2019s outgoing group chief executive officer, Norbert Sasse. He joins me on the line now to see what we make of the company\u2019s performance.<\/p>\n
Norbert, always lovely having you on the show. Thanks so much for taking the time.<\/p>\n
I find this probably one of the most bittersweet moments because, while the business is doing well and while we are able to reflect on a strong set of numbers, it is the last time you and I will probably have this conversation.<\/p>\n
Twenty-six years ago \u2026 did you ever think that the business would be where it is today?<\/p>\n
NORBERT SASSE: Hi Jimmy, and thanks very much for that introduction and for having me on your show.<\/p>\n
I think the short answer to that question is \u2018Absolutely no\u2019 \u2013 there is absolutely no way I could ever have contemplated what would have played out over the last 26-odd years in terms of growing this business to what it is today.<\/p>\n
So, yes, it is a bittersweet moment.<\/p>\n
ADVERTISEMENT<\/p>\n
CONTINUE READING BELOW<\/p>\n
And to your earlier comment, I think it fortunate that I can step down, I guess, in a year when we\u2019ve shown a pretty decent result, very much in line with our original guidance.<\/p>\n
And, more importantly, with the financial health of the business, considering its balance sheet and the loan-to-value ratios have come all the way down, with significant debt capacity on the balance sheet for future growth \u2013 leaving an opportunity for [new CEO] Estienne [de Klerk] and the team to use that capacity to find new growth opportunities, whether locally or internationally.<\/p>\n
JIMMY MOYAHA: Norbert, let\u2019s take a look at what Estienne and the team have taken over from what you built throughout the business.<\/p>\n
At the time you joined the business there were only nine properties as part of the Growthpoint Property stable. Now we\u2019re talking about more than 460\u00a0properties and property assets. The portfolio value at the time was around the R100\u00a0million mark, possibly R118-odd\u00a0million. If my math still serves me, that property portfolio is today worth over R157\u00a0billion.<\/p>\n
Now, of course, this isn\u2019t work that you\u2019ve done alone. Under your stewardship and guidance, Growthpoint Properties has grown to become the largest real estate investment trust business listed on the Johannesburg Stock Exchange.<\/p>\n
Now we talk about a property portfolio that spans beyond the borders of South Africa.<\/p>\n
NORBERT SASSE: Yes, that\u2019s right, Jimmy. It has been, as you say, definitely very much a team effort and I\u2019ve been very lucky and fortunate to work with exceptional individuals over the years who have all made a significant contribution to the business in terms of execution of strategy, identifying opportunities, working closely together with myself as leader of the group, to build a phenomenal business.<\/p>\n
I really do believe we\u2019ve got an exceptional business with exceptional people, with exceptional assets.<\/p>\n
If I can single out one, I guess the V&A Waterfront in Cape Town would immediately come to mind.<\/p>\n
But there are many of those and it\u2019s wonderful to be able to step back and hand that to the incoming team.<\/p>\n
It is fair to say that not everything we\u2019ve done has worked out 100%, and there are currently some assets in the portfolio that need a little bit of work, and I think we are probably overexposed to the office sector. Those will be some challenges for the team as they move forward.<\/p>\n
ADVERTISEMENT:<\/p>\n
CONTINUE READING BELOW<\/p>\n
But as I said, they have a helluva strong balance sheet. I leave an exceptional team of executives which I\u2019m comfortable with, who have the capabilities and ability to take this business to the next level.<\/p>\n
JIMMY MOYAHA: Norbert, what is your favourite asset that you\u2019ve added to the Growthpoint business? The business has operations in Australia, there\u2019s a healthcare side of the business, there\u2019s student accommodation, there is an investment management firm. These didn\u2019t exist at the time you joined the business, at the time you took over as CEO in 2004.<\/p>\n
Certainly there were no V&A Waterfront assets to speak of. Of all of the work that you\u2019ve been a part of over the last two decades, what would you say has been your favourite asset to add to this portfolio?<\/p>\n
NORBERT SASSE: I\u2019d probably have to single out the V&A Waterfront, just given the unique nature of that particular asset. We had a bite at the cherry in 2006 when the Transnet Pension Fund first sold the asset, and unfortunately we weren\u2019t successful at the time.<\/p>\n
Then roll forward four or five years to 2011. We were in the midst of the GFC [Grand Africa Caf\u00e9 and Beach], the new owners, which was Dubai World.<\/p>\n
The Livingston Brothers from the UK got to a point where they felt they couldn\u2019t or didn\u2019t want to own the asset anymore and we partnered up with the Public Investment Corporation [PIC] on behalf of the Government Employees Pension Fund and bought the asset on the second attempt.<\/p>\n
That was very satisfying, very gratifying. But what makes that asset so unique is that I would argue if property\u2019s in your blood, there\u2019s not an element of property that is not on offer or evident within the greater V&A precinct \u2013 from residential to retail, to office, to industrial, to moorings, to hotels, land development.<\/p>\n
There is absolutely everything you could dream of when you think of property in that precinct.<\/p>\n
We have had had the good fortune of having a good partner, a strong financial partner. We\u2019ve ourselves have been able to contribute 50\/50 all the way through \u2013 just taking it from an asset which didn\u2019t receive a lot of love from the foreign owners for that four- or five-year period \u2013 and then spending the capital that was needed to bring it back to its former glory.<\/p>\n
And not only that, but to then expand it materially and significantly and bring new attractions and new asset classes \u2013 including the likes of the museum \u2013 to that asset.<\/p>\n
So I would single out the V&A and the fact that it continues to perform extremely well and contribute handsomely to Growthpoint\u2019s bottom line.<\/p>\n
ADVERTISEMENT:<\/p>\n
CONTINUE READING BELOW<\/p>\n
JIMMY MOYAHA: Norbert, your final message to shareholders, other than the almost 8% dividend yield you have given them over this past financial year? Parting thoughts, parting wishes. Wishes for the new team that would be very much accustomed to what the business\u2019s expectations are, having been transitioned in quite nicely \u2013 your final message from your perspective?<\/p>\n
NORBERT SASSE: Just to reinforce I guess what I may have said a little bit earlier. The team that\u2019s in place and under the new leadership of Estienne, I think are an exceptional team with world-class skills and experience. They\u2019re dedicated, they\u2019re hardworking, they\u2019re good custodians of the assets within the company.<\/p>\n
And I think we\u2019re at a turning point where the balance sheet has been corrected \u2013 or let\u2019s rather say we\u2019ve created significant capacity now for growth again.<\/p>\n
It\u2019s been a reasonably tough four or five years after Covid. But we\u2019ve survived, we never missed a dividend. In fact, I think somebody did the calc for me the other day \u2013 we\u2019ve paid over R76 billion worth of dividends in the time that I\u2019ve been the CEO.<\/p>\n
I believe the team that stays behind and the good work we\u2019re doing on the ESG [environmental, social and governance] and CSI [corporate social investment] front will continue, and hopefully grow and expand even further to improve the overall business.<\/p>\n
JIMMY MOYAHA: Stepping out at the very top of the market; one couldn\u2019t ask for a better departure from such a prestigious role.<\/p>\n
Norbert, thank you for all of the dedication you\u2019ve put into the business over the years; thank you for leaving the business in even better hands.<\/p>\n
We\u2019ll have to leave this particular conversation on that note before it gets any more nostalgic.<\/p>\n
Norbert Sasse, outgoing group chief executive officer of Growthpoint Properties joined us to reflect on his final results presentation as the outgoing CEO, and sharing with us the long journey that the business has gone through under his tenure.<\/p>\n
#Growthpoints #property #pivot #starts #paying<\/p>\n","protected":false},"excerpt":{"rendered":"
You can also listen to this podcast on iono.fm here. JIMMY MOYAHA: Growthpoint Properties Limited…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[21055,3852,8628,1430,2742],"_links":{"self":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts\/15685"}],"collection":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15685"}],"version-history":[{"count":0,"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts\/15685\/revisions"}],"wp:attachment":[{"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15685"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15685"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15685"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}