Growthpoint Properties hurt by interest rates, but V&A delivers 'spectacular' performance

Growthpoint Properties has reported robust operational results across its local and international investments for the half year ended 31 December 2023, amid the impact of high interest rates.

The group is South Africa's biggest property company (it owns half of the V&A Waterfront) and also has a big international portfolio.

Total revenue increased by 4% to R7.1 billion (R6.8bn in HY23).

Total property assets were down 1.1% during the period, to R177.9 billion.

Growthpoint reported distributions of R2 billion – declaring a half-year dividend of 58.80 cents, 8.6% down from the previous period.

In South Africa, the V&A continued its outstanding performance, driven mainly by increased tourism and the positive impact this has on retail, hotels and attractions.

Bruce Whitfield interviews Norbert Sasse, Group CEO of Growthpoint Properties.

Sasse says he'd argue that there aren't many other real estate companies around the globe that have seen the kind of recovery that the Waterfront has in the past couple of years and in the last six months in particular.

"We're obviously very exposed to the tourism market in Cape Town... I think the Waterfront thrives off what happens at the Convention Centre, at the Cape Town Stadium... It's exceptionally well positioned to pick up all of that trade."

"The spend at the Waterfront across all the retail outlets, the restaurants, the hotels, was over R1.2 billion in the month of December alone. That's something like 16% past December 2022."

Norbert Sasse, Group CEO - Growthpoint Properties

In the main though, Growthpoint's portfolio has seen the negative impact of interest rates across its jurisdictions.

Any proposed cuts will not impact the current financial year with its June close he says, but will hopefully have a positve impact on their FY25 numbers.