Growthpoint Properties

Analyst thesis

Our recommendation is based on: 

• Stronger South African cash generation: Like-for-like net property income improved on fewer rent cuts, lower vacancies, and better cost recoveries - supporting distributable income per share growth.
• Cleaner offshore footprint: Disposals and exits reduced overseas earnings volatility while keeping useful diversification.
• Improved balance sheet, funding tailwind: Leverage and interest cover are comfortable, borrowing costs are trending lower, and further rate cuts would add flexibility.
• Resilient portfolio mix: Logistics and industrial remains tight with steady renewals, while the V&A Waterfront is almost fully let with strong tenant demand; capex is focused on modern Western Cape nodes.
• Energy self-help: A large solar base and the upcoming Etana PPA will wheel power, easing tariff pressure and backup-power costs to support margins.