Growthpoint sees FY26 distributable income/share growing 3%-5%
Growthpoint Properties Limited (JSE: GRT) has provided guidance for the 2026 financial year (FY26), forecasting DIPS growth of between 3.0% and 5.0%. This outlook reflects the company’s improved performance in its South African portfolio, continued outperformance by the V&A Waterfront, and reduced finance costs. Growthpoint’s results for the year ended 30 June 2025 exceeded expectations, with DIPS reaching 146.3cps, up 3.1% year-over-year.
The company has also raised its dividend per share (DPS) guidance for FY26, projecting growth of between 6.0% and 8.0%, supported by a maintained payout ratio of 87.5%. This increase in the payout ratio reflects Growthpoint’s strong balance sheet and disciplined capital management, with a focus on maintaining long-term liquidity and financial flexibility.
Growthpoint’s South African portfolio, which accounts for 50.1% of its total asset book value, delivered a 5.9% like-for-like net property income (NPI) growth in FY25. The logistics and industrial segment, in particular, showed strong performance, with like-for-like NPI increasing by 5.5% and portfolio value growing by 3.1%. The office portfolio also demonstrated a significant turnaround, with like-for-like NPI rising from -1.0% to +6.8%.
Internationally, Growthpoint’s investments remain a key contributor to its earnings. Its 63.6% stake in Growthpoint Properties Australia (GOZ) contributed 20.4% to DIPS in FY25. GOZ issued FY26 distribution guidance of AUD18.4cps, reflecting its strong operational fundamentals and reduced gearing levels. Growthpoint’s international investments now account for 38.0% of its property assets by book value and 28.7% of its DIPS.
Looking ahead, Growthpoint anticipates continued momentum across its portfolio, supported by its capital recycling strategy and focus on higher-yielding opportunities. The company plans to sell R3.5bn of non-core South African assets in FY26. Additionally, the V&A Waterfront is expected to deliver double-digit growth as residential profits are recognized.
Despite global uncertainties and elevated capital costs, Growthpoint remains confident in its ability to achieve its FY26 guidance. The company’s strategic initiatives, including portfolio optimization and sustainability efforts, are expected to drive long-term value creation.
