Growthpoint’s latest SENS update for the nine months ended 31 March 2026 shows a group still focused on portfolio quality, capital recycling and disciplined balance sheet management, while operating in a more difficult interest-rate and consumer environment. The company’s guidance remains unchanged, with FY26 distributable income per share expected to grow by 3% to 5% and dividend per share by 6% to 8%, based on an 87.5% payout ratio.

A major theme is the continued reshaping of the South African portfolio. Growthpoint originally targeted R3.5bn of disposals for FY26, but now expects total disposals of R5.1bn, well ahead of plan. In the nine-month period, it sold and transferred 21 assets for R2.0bn, with a further R2.9bn of properties transferred after 1 April 2026, including its 55% interest in the Discovery building. The proceeds are being used to reduce debt, preserve balance sheet flexibility and fund better-quality assets and developments.

The South African portfolio showed improving operational metrics. Overall vacancies improved from 8.2% at June 2025 to 7.3%, supported by stronger leasing in Office and Logistics & Industrial. Total space let came to 789,476m², including 510,228m² of renewals and 279,248m² of new lettings. The renewal success rate improved sharply to 79.1%, its highest level in more than a decade, while the overall renewal rental growth rate improved from -4.0% at December 2025 to -2.8%.

Retail remains resilient. Vacancies fell to 3.9%, the lowest level since June 2019, while turnover density grew 3.2% year-on-year and footfall rose 1.2%. Growthpoint notes that consumer spending remains fragile, with value and necessity-based retail outperforming discretionary categories. Key retail redevelopments include Longbeach Mall, Paarl Mall, Greenacres and Walmer Park.

The office sector remains the most challenged, although signs of stabilisation are evident. Office vacancies improved slightly to 14.2%, with the Western Cape particularly strong at 3.0% vacancy. Renewal success improved to 80.0%, but rental reversions remain negative at -7.1%, reflecting strategic concessions to secure longer leases.

Logistics and Industrial continues to stand out. Vacancies improved to 2.8%, the lowest level in more than a decade, with the Western Cape virtually fully let at 0.2% vacancy. Growthpoint is building a premium logistics pipeline, with R1.45bn of developments expected to add 98,204m² of GLA over the next two years.

The V&A Waterfront remains a key growth engine, with retail sales up 5.1% year-on-year, low vacancies of about 0.45% in retail and 0.5% in offices, and a major development pipeline including Lux Mall, Quay 7 Edition Hotel and Granger Bay projects.

Growthpoint Investment Partners now has about R12.2bn in gross assets under management, supported by healthcare, student accommodation and senior living through the Auria acquisition.

On the treasury front, Growthpoint reduced SA nominal debt to R36.3bn, maintained R5.7bn in unutilised committed facilities, and completed an oversubscribed R1.8bn bond issuance at record-low margins. ESG progress also continued, with rooftop solar PV capacity rising to 64.7MWp and renewable energy penetration increasing to 17.9%.

Leadership transition is confirmed: Estienne de Klerk becomes Group CEO on 1 July 2026, while Norbert Sasse remains in an executive role until 31 December 2026.