Growthpoint Properties is targeting an ambitious capital recycling programme that will see around R4 billion of its property assets being disposed of over the next two years.
“Total space let in the period was 878 107m². Significant letting of 330 586m² of new space improved vacancies from 9.7% at FY23 to 9.2% at HY24 and are currently at 8.5%. We renewed leases of 547 521m², renewal rental growth rates improved from -12.9% at FY23 to -7.1% at HY24 and are currently -6.3%.“Our capital management is disciplined with capital and development expenditure funded from asset sales proceeds and cash retained due to the 82.5% dividend payout ratio,” it said.
“Most of our office portfolio KPIs are stabilising, and investors are showing more interest in buying office assets. We successfully let 148 220m² of office space and renewed 100 046m², reducing vacancies from 19.2% at FY23 to 15.6% ,” it said. “We are aware that three tenants will be vacating a combined circa 10 000m² before 30 June 2024. Office vacancies are therefore expected to increase marginally to just over 16% for FY24 ,” it however cautioned.Stanlib’s head of property Nesi Chetty told Moneyweb that a combination of better letting and office disposals has seen Growthpoint’s overall office vacancies drop from 19% to 15%.