Growthpoint FFO hits guidance peak on record leasing

South African real estate investment trust (REIT) Growthpoint Properties said on Tuesday its funds from operations (FFO) for the fiscal year ending June 30, 2026, reached the upper bound of its guidance range, driven by record leasing activity.

The company did not disclose specific FFO figures in its preliminary results presentation. Growthpoint maintained its FFO guidance range of R4.05-R4.25 per share for the year, with the midpoint aligning with market expectations. Leasing volumes surged to a record high, supporting the outlook despite ongoing macroeconomic headwinds.

Growthpoint attributed the leasing momentum to strong demand across its retail and office portfolios, particularly in prime locations. The REIT has also emphasized its focus on asset recycling and cost discipline to sustain performance. Further details are expected in its full annual report, scheduled for release in August.

The preliminary results underscore Growthpoint’s resilience in a challenging operating environment, with occupancy rates remaining stable above 90% across its portfolio. The company’s strategy to prioritize high-quality assets and tenant retention has contributed to its ability to meet guidance targets.