Growthpoint Properties raises DIPS growth guidance for 2025

GROWTHPOINT Properties has upped its distributable income per share (DIPS) growth guidance to 2% to 3% for its 2025 financial year due to improved performance, better property fundamentals in South Africa, continued outperformance by the V&A Waterfront, and lower interest rates.

- EDWARD WEST

The largest JSE-listed South African Real Investment Trust had reported DIPS growth of 3.9% at the half-year stage, compared to the initial full-year 2025 guidance of a decrease in DIPS of 2% to 5%.

In March, the full-year guidance was updated to DIPS growth of 1% to 3%. But a strong performance, as indicated by Thursday's trading statement, resulted in the guidance being lifted once more.

Growthpoint management said growth would be offset somewhat by lower offshore income due to the sale of their stake in Capital & Regional (C&R).

In an investor update for the 9 months to March 31, management said several positive local developments had supported the group's performance in spite of a decline in the Business Confidence Index in the second quarter, as reported by RMB/BER this month.

These included longer periods without load shedding and a favourable interest rate outlook.

All three of the domestic portfolios showed improved performance.