The property developer said distributable income per share - the primary measure of underlying financial performance in the listed property sector - is expected to decline by 10%-12% in 2024.
Commercial real estate was one of the hardest hit sectors by the pandemic when government-imposed lockdowns shut offices and limited shopping trips, resulting in some tenants deferring rent, hitting profits for the industry.
While share prices and incomes have recovered, property companies are facing a double whammy of office oversupply and sharply higher funding costs, driven by higher interest rates.
South Africa's Reserve Bank paused its interest rate hiking cycle in July for the first time since November 2021.
A high interest rate environment also lowers the asset value of properties.
The company's total revenue increased 4% to 7.1 billion rand ($379.6 million) for the six months ended Dec. 31, while its South Africa revenue rose 3.4% due to improved letting conditions across its three domestic sectors.
Its distributable income fell 8.6% to 71.2 cents per share.
Growthpoint, with a portfolio of 541 properties across South Africa, Australia, the United Kingdom, Poland, and Romania, said vacancies overall improved in the retail and office sectors, while in South Africa there was a decrease in vacancies in the retail and office sectors.
($1 = 18.7050 rand)
(Reporting by Radhika Anilkumar in Bengaluru and Nqobile Dludla; Editing by Rashmi Aich and Sonia Cheema)
