Growthpoint Properties lifts dividends on strong SA performance

Growthpoint Properties Limited reported a 3.1% increase in distributable income per share (DIPS) to 146.3 cents per share (cps) for the year ended June 30, 2025, up from 141.9 cps in FY24. The final dividend for H2 FY25 saw an 8.6% rise to 63.3 cps, contributing to a total dividend per share of 124.3 cps for FY25, a 6.1% increase from FY24. This growth was primarily attributed to improved contributions from its South African sectors, including like-for-like net property income (NPI) growth of 5.0% to R5.7bn (FY24: R5.4bn) and reduced vacancies.

The company's SA loan to value (LTV) improved to 40.1% (FY24: 42.3%), with the SA LTV specifically decreasing to 34.5% (FY24: 35.4%) due to lower net debt from disposals. Growthpoint continued its strategy of disposing of non-core assets, selling 24 properties across three sectors for R2.3bn in FY25, and increased investment in the logistics sector with R322.0m spent on new warehouse developments.

Looking ahead to FY26, Growthpoint anticipates DIPS growth of between 3.0% and 5.0%, with DPS growth between 6.0% and 8.0%, supported by a targeted payout ratio of 87.5%. The company remains optimistic, citing a reduction in load shedding, a favorable interest rate outlook, and the South African Reserve Bank lowering the repo rate by 125 basis points since FY24.