All right. Good afternoon, everybody, and very welcome to this presentation of Growthpoint Properties results for the 6 month period ending 31 December 2025. A beautiful day here in Cape Town. A bit of a heat wave, but thankfully, this room seems to be cool enough. Before I start, just a couple of welcomes, introductions, acknowledgements. In no particular order, just want to welcOme some of our former non-executive directors in the crowd, Peter and Lynette. Some of our current directors, Melt Hamman. Melt always brings a bunch of scholars with him from Riversdale. Welcome to the scholars that are here today. We have a retiring Financial Director, Gerald Völkel, after 13 years. Gerald, a spectacular innings. Thank you very, very much for your contribution over the 13 years.
Very key part of the business and, always, a privilege, I guess, as an executive team, to know that the financial side of the business and the numbers and the reporting is sorted. We don't have to waste too much time ourselves on that stuff. It's a great sense of comfort that we've had. Being replaced by Josée. Josée Snyders. Welcome, Josée, as well, and we look forward to long innings with Josée. He's joined us as of the beginning of January. Gerald retires at the end of the month. Then a bit closer to home, we have the V&A Waterfront. What a spectacular venue once again that we're able to host the presentation here. We have the privilege of both having David Green, outgoing CEO, in the crowd today.
I've lost him now. He was here earlier, grabbed some snacks and ran away. Then the new CEO of the Waterfront, Graham Wood, also with us here today. Very welcome to Graham, and we look forward to a long relationship with Graham. As they say in the classics, all protocol observed, and maybe we can then move on to get into the results. Just whipping through the agenda, we'll quickly look at the portfolio composition as it is today, some highlights, touch on the update on the strategy, look at some key numbers in the financial results. I'll speak to some of the international investments, Growthpoint Australia, and Globalworth.
Estienne will come and take over and talk to us about the South African portfolio, Growthpoint Investment Partners, touch on the capital management initiatives, and then I'll come back and conclude. Just taking stock of the business and what it looks like today. Essentially, the South African business continues to be the biggest chunk of the business. If you add the South African portfolio of about ZAR 66.8 billion of retail office and industrial assets, as well as some of the trading and development assets that we have. The South African assets stand alone make up about 50.7% of total group assets and contribute about 58% of the contribution to our distributable income per share or DIPS, as we commonly refer to it.
Waterfront, so the value of our investment in the V&A Waterfront is at ZAR 14 billion, and that is about 10.7% of total assets, and it contributes 15.7% to our DIPS. Our offshore investment, we sold our investment in Capital & Regional and NewRiver REIT. We're left with Growthpoint Australia, and we own 63.6% of Growthpoint Australia. Makes up 22.8% of the total assets of the business. Contributes just short of 19% to DIPS. And then we have Globalworth. We own 29.6% of Globalworth, separately listed on the Alternative Investment Market in London.
It comprises 11.5% of our total assets and contributes 2.7% to DIPS. Lango, which is our investment into the rest of Africa, essentially. We own 15.7% of the equity in Lango. Makes up about 1%- 1.5% of total assets. We haven't received any contribution from Lango. So at the moment, that's zero contribution to DIPS. We also have our fund management business, Growthpoint Investment Partners, which has essentially got 2 funds, the Healthcare Fund and the Student Accommodation Fund. The Healthcare Fund now has about ZAR 7.4 billion worth of assets in it, and Student Accommodation, ZAR 4.7 billion.
Those collectively, we own minority stakes in those 2 funds, so it represents about 2.8% of our total assets and 4.4%, makes a 4.4% contribution to DIPS. That's the group and how it's put together at the moment. Some highlights for the period. We managed to grow the distributable income per share by 2.3% to ZAR 0.757. The dividend per share is up by 8.5%, so that's a combination of the increase in DIPS, but also an increase in the payout ratio, where we've increased our payout ratio from 82.5% to 87.5%.
That results in an 8.5% increase in dividend per share, up to ZAR 0.662 per share. Group LTV is at 40.8%, slightly up from the previous reporting period. Group consolidated property assets at ZAR 157.5 billion, that's a 1.1% increase. Our net asset value per share was down 2.2% to ZAR 19.45. Our group interest cover ratio at 2.7 times, improvement from 2.5 in the prior period. Interest cover ratio for the South African business, based on our debt. South African debt, 3.2 times, healthy 3.2 times up from 2.9. Just updating on strategy.
I was on the radio and, I think Estienne did most of the TV yesterday, but, we used the analogy of cricket in some of the interviews and, you know, when you are defensive and you are batting and balls are flying left, right and center and you're ducking bounces, then you generally move onto the back foot and you play defensively. We've been doing that for the last couple of years. With the momentum that we've seen not only in the domestic economy, but even globally, and I'm hedging everything here based on premising everything on what happened a week ago. I'll talk about that, right at the end. Clearly, you know, what happened a week ago in the war in Iran at the moment is something which is new.
Certainly South Africa also up to a week ago was feeling a lot better. We definitely as a group are feeling a lot more confident. We're feeling a lot more positive. In cricket terms, we've moved on to the front foot and we're looking to actually, you know, possibly score some runs. In that regard, I think we did turn positive on our distributions in terms of growth. For the year to June 2025, we showed we turned to growth. Prior to that, we had a year of negative growth. We have disposed of the NewRiver REIT stake in August. Sorry, yeah, in August. Then in October, the healthcare fund they bought the Auria business. We invested ZAR 50 million in the hydro plant in October.
We equally invested into the Cape Winelands Airport in October. V&A managed to secure additional rights, 440,000 squares of additional rights in that came through late December, effective sort of January. Then more recently in February, you know, we disposed of the Discovery head office building in Sandton. We've secured a number of premium logistics and industrial developments. I think we sit with about a ZAR 3.8 billion commitment of so ZAR 3.5 billion remaining of ZAR 3.8 billion of commitments in terms of developments and investments. We also launched and had the sod turning of the Olympus residential development in Sandton. There's a lot of momentum sort of building in the business.
I think, you know, with the balance sheet in great shape, certainly on the South African side, you know, with LTVs down in the 33% sort of level, we do feel that, you know, there's scope for us to be a bit more front-footed and to start looking more actively at, hopefully value enhancing acquisitions and investments. Just update on the strategy. Focusing on the balance sheet, which we're not ignoring. It still remains, you know, a very big priority for us. Group LTV 40.8, slightly elevated because of the Auria transaction. We consolidate the healthcare fund, even though we only owned 39 odd% of it, I think.
They acquired the Auria business, fully debt funded, and that's added 1.2 odd billion of debt to that business. That together with some higher LTV at GOZ, you know, have given rise to a slight increase in our group LTV. On the other hand, as I said, GOZ has gone up to 40.5% based on our calcs. On their calcs, it's slightly higher, 41, just over 41%. South Africa down at 33.2%. We remain very focused on the balance sheet. Post the reporting period, obviously, we've sold the Discovery building. We've got about ZAR 3.5 billion worth of asset sales that we believe we'll achieve. That includes the Discovery building before 30 June.
That will probably bring the LTV ratio even further down and our absolute debt levels down a bit more as well. We have lots of liquidity, thankfully. Notwithstanding the, let's say, noise in the international markets at the moment, we're still sitting with significant liquidity, ZAR 5.7 billion worth of unutilized committed facilities. We've always, you know, felt that it's important to have that level of liquidity that also covers any expiries of debt that we have in the next twelve months. We've about a half a billion rand of cash on the balance sheet.
Through our payout ratio, notwithstanding that we've upped the payout ratio, we're still retaining for the half year anyway ZAR 321 million worth of cash by paying out 87.5% of our distributable income. We continue to work very hard at focusing and refocusing the South African portfolio. In the period, we sold 15 properties for ZAR 935 million. On the other side of the balance sheet or on the other side of the coin, however, we also spent ZAR 545 million on maintenance CapEx and development CapEx. Some of the larger ones in that development CapEx include the Longbeach Mall. We're adding one of the retail outlets. I forget the exact. Where's Gavin? Builders Express.
Builders Express at Longbeach Mall. The 36 Hans Strijdom building, which is the old Investec building, the new 91 building. We completed the refurbishment of that building. We also spent some money at Lilliesleaf , putting a Checkers into Lilliesleaf . Some investment into some of our existing assets. Not much on the acquisition front, to be honest with you. Certainly, you know, as the market eases up and improves and liquidity is available, you know, acquisition opportunities are certainly, you know, around if we chose to pursue them. Taking a bit of a longer-term view on how we've repositioned the portfolio.
Since July 2016, we've sold ZAR 15.9 billion worth of assets. 43 office assets, 30 retail assets, 114 industrial assets. We've reduced the total consolidated GLA by over 1 million square meters. In the process, we've repositioned the portfolio whereby industrial assets used to make up, or logistics assets used to make up 15%. It's now 19% of the total portfolio. Office has come down from 46% to 42%. Retail remaining pretty stable at 39%. This is an ongoing process. It's a big ship. There are many assets. Selling 1 asset doesn't move the dial. Even a Discovery at 2.4 billion, whatever the number is, of disposal doesn't actually move the dial. It sounds a bit arrogant, but it's the truth.
You know, to imagine repositioning the portfolio overnight and having 20% office and 50% logistics, just not gonna happen. It takes time, but we've got a plan, and we're executing on it, and it's definitely paying dividends. On the international front, we continue to look at optimizing our value from the international assets. We did sell Capital & Regional and NewRiver REIT. We have 35.8% of our assets today are effectively located offshore, and they contribute 21.6% to our DIPS. GOZ or Growthpoint Properties Australia remains a very core investment for us. I'll talk to that in a moment in more detail.
The rand equivalent of our foreign earnings for this period amounted to ZAR 554 million, down from ZAR 769 million. A combination of the loss of contribution from Capital & Regional and NewRiver and lower contributions from GOZ and Globalworth. Very quickly, I always like to talk to this slide to just give a brief overview of the moving parts in the 6 month period. You know, what contributed positively, what contributed negatively, by comparison to the same reporting period a year earlier. This is compared to half year 25. We can see the total distributable income went up ZAR 52 million. South Africa, positive contribution, ZAR 69 million. Estienne will give you all the insights there.
A pretty solid performance from the South African portfolio with like for like net property income growth of 6%. A bit of a different story to a couple of years ago, when in fact, the offshore businesses were propping up performance. In the last couple of reporting periods, we've had the South African business propping up performance. I guess that speaks to the benefit of some diversification. A big moving part is the reduced finance costs. Total net finance costs had decreased by ZAR 218 million.
That's a combination of lower absolute levels of debt on the one hand, but also lower interest rates, and our average interest rate now at 8.5%, down from 9.2% at the half year 2025 and 8.9% at FY 2025. That being a big contributor to the bottom line. V&A, 5% positive contribution. That looks a little bit meager, if you're sort of used to the contributions that we got or get from the V&A. But that number has been very severely impacted by 2 closures, if you want, of 2 very significant assets that were contributing very positively. 1 is The Table Bay Hotel, which was closed for the entire reporting period, and then also the Lux Mall.
Now, both of those are pretty much up and running again. Lux Mall will still probably ease into, I think, it'll only be finally fully income producing, I think, towards September. Alex is in the room. The Table Bay Hotel, we've opened in a phased approach. Estienne will provide detail on that as well. You know, for the year, we certainly are looking for full double-digit contribution from the waterfront. This is just the half year pit stop. Growthpoint Australia, down AUD 48 million. Combination of the big moving part there, I think, is the fact that in the prior comparable period, we had a special dividend of AUD 0.021.
For this period, the comparable dividend was ZAR 0.092 as opposed to ZAR 0.091 in the prior period. And then there are a few other moving parts in terms of currency and withholding tax rates. In essence, the big moving part is that we didn't receive any special dividend in this period. Capital & Regional, that business was sold, so we lost effectively ZAR 96 million contribution from them. Globalworth was down ZAR 60 million, and that again is due to lower dividend, 7.5-cent dividend from Globalworth in the prior period and 5-cent in this period. Lango was down ZAR 11 million. Growthpoint Investment Partners was up ZAR 24 million. Our trading and development business was down ZAR 49 million compared to the prior period.
All of those combined giving us the ZAR 552 million increase, and that translates to the 2.1% growth in distributable income, which I'll get to in a second. Very high level quickly on the income statement. Gross property revenue was down 9.2%, or ZAR 673 million. That's mainly Capital & Regional and our trading and development contribution, which was negative. Property expenses, on the other hand, was down 20% or ZAR 198.462 million, improvement on expenses. That left us with net property income down ZAR 211 million or 4.2%, at a number of ZAR 4.786 billion.
Our other operating expenses was down 6.3% to ZAR 521 million. That left us with net property income after operating expenses down 4% at ZAR 4.265 billion. Finance costs arguably one of the biggest contributors, as I mentioned before, down 15.6%, ZAR 342 million less interest. Total number now of ZAR 1.8 billion of interest. That again, main contributors there is the South African lower debt levels in South Africa and lower interest rates, but also the exclusion of Capital & Regional. Finance income was 20% down, ZAR 537 million.
If you then make the adjustments for the non-controlling interest, foreign exchange loss, antecedent dividends and normal taxation, we end up with our distributable income number of ZAR 2.569 billion, up 2.1%. This slide just tries to reconcile between our FFO, sorry, our distributable income number and the SA REIT FFO number. A couple of moving parts there. The biggest one is basically the adding back the amortization of tenant incentives for the Australian business and then the movement in the retained income that is retained in Growthpoint Australia, which is with their payout ratio only being about 75%. You then end up with a SA REIT FFO per share number, which is ZAR 0.735 or 17% higher than the prior comparable period.
Distributable income per share up 2.3%. There was some in that final calc from the 2.1 cents distributable income absolute number to per share number. There's some reconciling items in terms of the number of shares which we hold in treasury. Balance sheet. Reasonably let's say stable balance sheet. Our total property portfolio, ZAR 126 billion, up ZAR 2.4 billion. The main move in that, I think, is the addition of Growthpoint Investment Partners. You can see ZAR 3.5 billion of additional assets there. The Oria acquisition represented about ZAR 3 billion of assets. And then on the GAV front, we've seen some asset disposal, but also slight amount of currency movement in that.
Assets just up 2%. Equity accounted investments, ZAR 17.5 billion. I'm not gonna go into the details of those there. Then the nominal borrowings, you can just see the South African number, ZAR 63.9 billion down to ZAR 36.5 billion. Growthpoint Investment Partners up ZAR 2.3 billion. The absolute total number staying pretty flat at ZAR 61.5 billion. Shareholders' interest or NAV, ZAR 66.5 billion, down 1.8%. Just touching quickly on the 2 international investments that we have. Growthpoint Properties Australia owns 50 assets in Australia. It's separately listed on the stock exchange in Sydney.
It has a square meterage of just under 1 million square meters, and 100% of the portfolio is valued at ZAR 47.2 billion. There are also 17 assets in the third-party funds management business. From a performance perspective, GPA's delivered 3.4% increase in its FFO and a 1.1% increase in DIPS. I'm just checking on the sound, guys. Something's happened. Is it coming back? Sounds like it. Yeah. We had AUD 485 million of net distributable distribution received from Australia compared to the AUD 533 million in the prior period.
The payout ratio is slightly lower at 75.5% compared to 77.3% in the prior period. GOZ's balance sheet, just over 41% LTV in terms of the way in which they calculate their numbers, slightly different to ours. The main reason for that is that GOZ used its balance sheet to effectively underwrite and seed fund the acquisition of an asset, Macquarie Park in Sydney for the funds management business. Hopefully, as that asset gets sold down in terms of, let's call it a syndication, we'll bring the gearing down again. Liquidity is good for GOZ. I mean, there's no immediate short-term debt refinances that we need to be too concerned about. 78% of the interest rate exposure there is fixed.
Interestingly enough, Australia has been in a very different cycle to South Africa or in fact the globe, to be honest. Their last interest rate movement was an increase. I read something this morning suggesting there might be another increase. From an interest rate perspective, we pretty well hedged against any further increases in Aussie. But I think it also talks to the, let's say, the recovery of listed property in Australia. It's been a pretty tough time. Bond yields haven't come down. If you compare it to South Africa, where we've seen bond yields come down from 12% to 8% and the commensurate increase in listed property share prices, none of that's played out in Australia yet.
We do think that, you know, it's just a matter of time and as the Australians get their economy going again and get their inflation under control. Weighted average debt maturity is 3.4 years, and the weighted average cost of debt is 5%. The portfolio is still performing pretty well. It's about a AUD 4 billion portfolio. 77-odd% of the income is derived from government tenants and listed corporates and large corporates. 95% letting by, measured by the expected rental value and 97% in terms of GLA. 6.7% weighted average lease cap rate, 5.6-year weighted average lease expiry. Very good letting. You'll see 30,000 letting in office and 62,000 squares letting in industrial.
After the year-end, there was another 30,000 of office leases that were renewed and signed and another 26,000 of industrial. Letting market's good, and valuations have been pretty stable. Office is still slightly down, whereas industrial managed to eke out a slight positive revaluation. Like for like property, FFO was up 5.9%. On the fund management side, very stable, ZAR 1.4 billion of assets under management. We have 6 retail assets,3 office assets, and 8 industrial assets in that fund management business. ZAR 125 million acquisition, additional fund was created and ZAR 24 million additional industrial asset was brought into the partnership that we have with TPG Angelo Gordon.
On the other hand, we had some funds and assets that matured and ZAR 140 million of assets under management was divested with another ZAR 173 million post the half year. Almost selling or selling slightly more actually and realizing a little bit more than we actually found new investments but staying stable at ZAR 1.4 billion. Moving on to Globalworth. Globalworth listed on AIM in London. It owns 57 properties. It's just over 1 million square meters of space, and our 29.6% share is valued at ZAR 15.2 billion. We saw a 33% decrease in the dividend to ZAR 0.05 from ZAR 0.075.
Major moving part in that was an EUR 8 million tax charge from in Poland, which we, you know, had to account for. Like for like, net operating income, pretty stable, 70-odd million, just down 1.4%, mainly due to some inflationary increases in some on the expense line. Balance sheet's probably stronger than it's been in the last 5 years. EUR 410 million of cash at 31 December. We saw slight negative property valuations, EUR 13-odd million. We drew down on EUR 65 million facility. So liquidity in the market there is equally very good. Gearing is under control at 37%.
Post-year end, the company actually used some of this almost, let me call it, excess cash to buy back some of its bonds. The company still has ZAR 400-odd million of bonds in issue, and they used ZAR 125 million of the cash to buy back some of the 2029 bonds that we were paying 6.5% on. Earning interest on cash at sub 2% versus paying, you know, 6.25% doesn't make a lot of sense. The board and management team are, however, very focused on maintaining significant liquidity, much more so in cash, much more so than we ever do here in South Africa.
It talks to the fickleness of that debt market in those, you know, in Poland and Romania. Our debt markets are a lot more stable than that, what they've experienced over the last 10 years. That should be good for earnings. You know, using your cash that you're earning almost no interest on and settling your debt at 6.25%. Quiet time on the development and disposal front. There is, however, some activity. First time since COVID that new buildings are being built in Romania. Globalworth had the planning permission for a new office development in the Green Court precinct, 17,200. It's pre-committed to the extent of in excess of 60%.
That building is under construction as we speak. In Poland, we completed the refurb of the Renoma Building. There's still some significant land available for development in Poland, but it's unlikely that that'll be activated anytime soon. We saw a small increase in the portfolio value. Portfolio value is about EUR 2.6 billion. We have 37 assets in Poland and 20 in Romania. Good lettings. The fundamentals in the letting market also pretty good in Poland and Romania as they are in Australia. The challenge, I guess, is the vacancy in Poland. Romanian vacancy is only 5.6%, but Poland is struggling a bit more in the regional cities.
Warsaw itself is fine, but the regional cities are struggling a bit. Revenue was up a little bit to EUR 120 million. I'm gonna hand over now to Estienne, and then I'll come back after he's done. Thanks.
Thanks, Norbert. Appreciate it. I don't know if it's coincidence or. It's certainly apt that the South African business has delivered a strong result. Here's looking at Gerald, 'cause I think through the dark days when we were fighting the 8 plagues, I think he was one of the few people that had a bit of faith and could see through the cycle in respect to the South African business. Yeah, it's certainly a bit of a celebration for his career these results. Gerald, thank you. Looking at the South African business, as Norbert mentioned, it certainly has. The environment has improved, and some of the work that we have done is starting to deliver results.
If we have a look at the activity, this huge volume of leases still being re-signed every year, 567 just in this, 1,000 square meters just in the 6 months. Like for like, rental increases of 6%. Vacancies have reduced by 1%, mainly actually as a result of the reduction in retail and in the office market. Then the renewal growth is down to 4%, which is slightly disappointing. If you recall at our year-end results, I did warn investors that we have a couple of big leases, which we had already actually renewed, that were coming through in this first half of the year.
We have been also more successful in retaining our tenants and we've done a lot of work in the expense side of the business, and that is certainly showing in the expense ratio improving to 35%. Not much to really speak about in the arrears. It's sort of flattish and you know there are actually quite a few credits which we don't reflect in the numbers, which maybe in the future we'll think about a little bit. The arrears is pretty much under control. We've had 1 or 2 tenants that have fallen over in the industrial portfolio that impacted their expense ratio. Generally the book is a good quality and performing well.
Our debt cost on the South African balance sheet has reduced to 1.2, so it's 14.6% down. Pretty strong. The balance sheet is very conservatively leveraged at 33%, and that's evident through the interest cover ratio of 3.2 times. We're very active in our development pipeline and that number is set to increase over the next 2 years as we move into the commitments we've made, which the remaining component at this point is ZAR 3.5 billion. Still very active with sales. I think we indicated to the market that we were looking to sell about ZAR 3.5 billion worth of assets at the beginning of the year.
If the Competition Commission and the Deeds Office prevail, we might actually hit that target. Because we've got another ZAR 3.2 billion worth of deals over and above the ZAR 900 million that have already been concluded, waiting there at those 2 areas. When we look at the logistics portfolio, the strategy here was to try and rotate this portfolio out of, let's call it older, smaller industrial into logistics assets and sell off the poorer quality assets over time. I think at the peak, our logistics portfolio had over 220 properties. We've slowly but surely now, if we look at this portfolio, you know, it's a very different looking portfolio.
Some of the analysts that came on 1 or 2 of our property tours, you know, certainly were surprised to actually see the kind of assets that they thought we didn't have. The reality is that the business is performing pretty strong, this specific business. You've got 133 properties. I mean, if all the deals go through that we plan, this portfolio will go down to about 100 properties or settle in and around about 100 properties, and the percentage of logistics will increase significantly. Vacancies are down. We've done some good letting in Gauteng that has resulted in that. We've taken out 1 or 2 properties which we're busy redeveloping. Montague Gardens is 1, Chain Avenue.
Then on the flip side, we are busy developing spec quality logistics. What the expectation should be is that you will have the vacancy number kick up a little bit as we roll forward and complete some of these spec developments, because 9 out of 10 times, you've got 1 or 2 of the units that we're bringing on that will still be vacant by the time that we bring it into the market. Generally, vacancy is well under control. Escalations, we're still getting good escalations in our leases at 7.5%. On the renewal side of things, it is a bit of a mixed bag. The good news is more than half of the leases we renew now is positive and or in positive territory.
As you can see there in the Western Cape, we've got 7.3% growth. Vote and I had a good talk maybe 2 years ago, and we agreed that if your portfolio is pretty much full, then there's probably good reason to see the rentals starting to go up. They've certainly delivered on that side. In KwaZulu-Natal, I mean, the rentals generally in KwaZulu are quite high. Land cost is very expensive there and development cost. We are seeing a couple of reversions there still in that space, and there was one specific lease in Hammersdale that skewed the number quite a bit. Gauteng is sort of flattish.
Generally, you know, we finding that we are being able to retain our tenants very, very well and arrears are under control. We just had 1 or 2 leases there that where the tenants have failed. That has skewed that number somewhat. Our like-for-like growth at 5.6% is reasonably pleasing. We've seen pretty much an overall improvement in the market. It is pretty competitive out there, to be honest. There are other players in the market that are very aggressive and prepared to do initially dilutive transactions in terms of the new developments, whereas we've got quite a high hurdle that we're trying to meet. It is pretty competitive out there, but generally, our like-for-like income is growing strongly.
Other than the provisions that we had to make for those losses, our expense ratios have also improved. Valuations sort of flattish. We've made good progress in disposals in that we've sold 10 properties and 2 proportional disposals, which gave us just under ZAR 700 million there. We've got a further 2 properties for sale of ZAR 44 million, and there's another 23 other assets that probably to the extent of about ZAR 1.6 billion that we are in very advanced stages of negotiation to dispose of.
As mentioned earlier, half this portfolio now is logistics, and you can see from the graph that's provided there that, you know, we've been pivoting up into better quality assets, and there's a lot of work that's been done that's paying off over here. On the retail side, also here, we've disposed of. The strategy was really to get out of CBD assets, specifically and smaller retail. At the peak, I think we had about, speaking under correction, about 58 retail assets, and we've sold down to 31 odd, and I think there's probably another 5 or 6 that will be on the list for disposal over the next couple of years.
The idea is to have top-quality assets in metropolitan areas that we are reinvesting into over time to ensure that they remain dominant in their market. The vacancies have come down. A bit of that is repurposing of space. At Alberton City, which is a CBD mall, we've actually taken out some retail space to provide for a taxi rank to ensure that the shopping center is anchored to the market. Then we have also got a couple of redevelopments at Key West and Brooklyn that has taken some GLA out of the space. Vacancies at 3.2% has come down quite nicely. Escalations are flattish at about 6.1%.
We're managing to renew pretty much most of our clients at 92% and with a small increase in rental. Generally, what we are seeing is that our shopping centers are good shopping centers. The retailers are happy in the shopping centers, and when it comes time for renewal, generally, those discussions are pretty positive. I'll show you some turnover numbers now just to give you a bit of a feel, 'cause I think there is a bit of angst in the market around, you know, if we look forward, retail statistics are looking a little flat at 2%-odd, and immediately all the analysts are in a frenzy because now how are we gonna get rental escalation?
There's a little bit more science that we're gonna put into that, and I'll try and take you through that a little bit just to give you an understanding of how we see life. Like for like growth at 6.3%. A lot of work there into expenses, and here our solar rollout has played quite a bit of a role in reducing our cost-to-income ratio. Then if you look at the valuations, they're pretty stable at this point. Just to contextualize valuations, they are a rollover. We're busy now with external valuers and clearly our year-end valuations will be specifically performed by external valuers, and then we will probably see a bit more movement in the numbers.
When we look at the portfolio optimization here, we've sold Waterfall Mall Value Centre, so that's right opposite our Waterfall Mall shopping center, which is a large regional shopping center in Rustenburg. This is a secondary asset. We've sold that. We also sold out of the CBD of Randfontein. That property we sold for ZAR 450, and that transferred actually out of this period. It was in the next 6 month reporting period, but we thought we'd just include that. 2 properties are basically in final stages of disposal and a lot of development work improving our existing quality malls. Lilliesleaf, we brought in Checkers. Longbeach, we brought in Builders Express. That facility will open shortly.
Food Lover's Market has already opened and trading and really looking very, very good. I was there about a month ago and the shop really is trading well and looking good. A lot of money spent on solar. We can talk about the energy strategy a little bit later. Middelburg Mall, we've commenced a redevelopment there which hopefully will be complete towards the end of the year. At Paarl Mall, we're doing the same thing. If we look at these statistics here, I think the first is just to have a look at in the 6 months what's actually happening to trading densities and growth. Unfortunately, November and December was actually not very strong months.
If you look over a 12-month period, actually, the trading density growth is actually a little bit better. For the 6 months, it's at 2.3 or so %, and that sort of speaks to what we're hearing from the retailers themselves. If you listen to Shoprite and pretty much most of the retailers, they've kind of sort of complaining about flat, a flattish sort of environment and a weakish November, December, in terms of Black Friday and the December sales. Our trading densities has continued to grow, though. At the moment, on average, right across the portfolio, we've got trading densities of 39,000 per square meter per year.
Really the growth is mainly from our community centers, which grew at 4.1% in the Western Cape, which was at 3.6%, followed by the Eastern Cape, surprisingly. I think that speaks to some of the work we've done in some of those shopping centers, opening up and refurbishing some of the stores there. Then certainly the other sectors like specialty foods and bottle stores always do well over the festive season. Then the furniture and interior also grew at 7% and food services at 6%. Trading densities in our portfolio, the highest is in Constantia, just around the hill here, around the mountain at ZAR 108,000 per annum, which is quite an eye-watering number. Westville in Durban is at ZAR 87,000 per square meter.
Montague Gardens, which is also here in Cape Town, is at 85,000 sq m. Our trading density growth of 16.9% at Lilliesleaf and 8.7% at Bayside Mall after the redevelopment there, and 9.2% at Key West Shopping Centre. This statistic really speaks to how we think about rental discussions and rental negotiations. When you look at this percentage, it basically gives you the average percentage of the trade over the rental. It's a sort of cost of occupation for the tenant. If you go through a cycle, the rent, the turnovers go up, they trade much better, but we don't really get the benefit of that because our leases take a little bit of time before you get to that renegotiation stage.
You do get a bit of turnover rental, but it doesn't really make a big impact. When the opportunity arises, then this number is quite important. We are quite lagging when you've gone through a strong market, which we have done, even though it's sort of flattened out now. At 7.2, I think, it's a very affordable average for the retail space. In certainly our community centers are low at 5.4. If we look at the KwaZulu-Natal at 5.7 and even the whole of Western Cape at 6.2, it doesn't speak to a portfolio that's over-rented at all.
I'm reasonably confident that we will still be able to have quite robust discussions with retailers when we renegotiate leases, and that we'll continue to see a positive trend in terms of rental dynamics. Assuming the market keeps going, I mean, obviously the last week has changed the world a little bit, but high interest rates certainly have pinched, and I think that is one of the reasons why we're seeing flattish sort of retail numbers coming out of the retailers. Foot traffic continues to grow. I think we also provided some turnover contributions, so from which sectors we're getting most of the turnover, and you can see it's pretty well diversified and we do provide quite good statistics there. You can see that the coastal areas are really outperforming Gauteng quite a bit.
Where we redevelop assets, you see actually pretty strong growth like at Bayside Mall, where we've seen 25% growth in turnover. If we look at the office portfolio, now even here we've I think the office, we used to have over 200 offices at the peak. We've managed to sell off some of those offices that are not in our strategic focus. This portfolio is starting to show some good growth, given that we're busy reducing vacancies. It is a very competitive market, specifically in Gauteng. If you look at the market, you can see there's no vacancies in Natal. I think we've got about 1,400 square meters in Umhlanga Ridge left. We've got about 4,000 square meters here in Cape Town.
These markets are proving to be pretty strong. You've got renewals there at 4.7% growth in KwaZulu-Natal and demand is actually very, very strong. Where we have been struggling still is in Gauteng. The market is very competitive. It is improving. The way we're thinking about life is to have our assets in precincts where we can have a bit more impact and control over the environment that these properties are in, because often the municipal services aren't quite up to scratch. Increasingly, we're providing power, water, and road infrastructure quite often to make sure that our clients have a good experience at our properties. All those things are starting to certainly show some results in here.
The 9.6% negative growth is very much in a handful of leases, rather large ones, I must point out. There we took some reversions in a competitive market. Like-for-like growth though, overall is 5.8% up, speaks to some really strong work in our expense numbers there. Certainly, the team is working very hard to get our recoveries as high as possible in these leases to ensure that the portfolio grows as strong as it can from an income perspective. Then we've also managed to dispose of some assets and we've welcomed 91 into their new building, which is a net zero carbon redevelopment, so a very, very nice product and asset.
I went and visited Anne-Marie there the other day, and it's pretty luxurious. One day when we're big, we also want an office like that. The reality is that we are putting quite a lot of effort into ensuring that we provide green products to our clients, and that's the demand, and continuously working this portfolio to ensure that we've got the top quality product in whichever precinct they are in. A big transaction for us was obviously Discovery. That deal was approved by the Competition Commission. It will now proceed to the Competition Tribunal, so we hope to get that approval within the next 3 weeks, and then it'll proceed to transfer.
We don't foresee that this property will transfer much before June, so we're hoping to get it into this year. We've provided some statistics. Strategically, it was important to understand that albeit a trophy asset, you know, it did have quite a bit of risk inherent in the asset. The lease is about 7 years remaining. It's an excellent tenant. We've got a wonderful relationship with Discovery. They are clients in our portfolio in other cities and in other assets, and we continue to have that relationship with them. They were eager acquirer of the asset. I think strategically it made sense for them. From our perspective, that specific building, the phase I development, was very difficult to subdivide.
If they had to get to 7 years down the line, and they only wanted half or maybe 2/3 or whatever of the asset, it would have been really pretty complicated for us. This really was a mitigation of risk. We will get ZAR 2 billion of net proceeds. We are acquiring the adjacent building, so we will have an arrangement in terms of servitudes, et cetera, on the asset. The second property has quite a few subtenants in the building, and we believe there's upside in some of those rentals going forward. It still gives us a bit of an anchor in that Sandton Summit precinct, and we believe that's still remains a good investment. The other property is subdivided and is much more multi-tenantable.
We will put ZAR 2 billion into debt, and the overall impact on DIPS we project will be about 1% dilutive, so this will probably only impact FY 2027. It will have impact on some of the statistics, so it'll increase our vacancies because you're taking a very large, fully let building out of the portfolio. It will reduce our exposure to Sandton, but ultimately this is an active asset management strategy that we have followed here. Trading and development didn't really contribute too much to the P&L in this period, but you have to appreciate that this business is very much focused on development, and at the moment, our development pipeline is switching on as Growthpoint.
Increasingly, there's gonna be much more focus on balance sheet assets where we're applying the skills rather than trading and development activities. They're still pretty active. They've got deals that they're busy selling off in Riverwoods, Palm River, and De Vere. They're building Howard for the student accommodation fund, and they've got effectively 3 developments in healthcare that they're also busy with and that will be finished through this year. The very large residential development, which we're JV-ing with Tricolt, also kicked off and will be finished in 2028. These are just some pictures of the developments that they're busy with at the moment. Noka Park up close in Kempton. Paarl Mall's gonna be quite a material redevelopment. Indlovu is here in Montague.
We bought the old PPC site, flattened it, and we're busy building a large logistics facility there, park there. Then the Olympus Residential, to be honest, when we initially commenced with this, I didn't think we would have much success selling flats in Sandton or in Gauteng, but we have been absolutely amazed the demand for these assets. Interestingly, it's quite interesting when you sort of look at the V&A and the kind of buyers we're getting here, and then the buyers that we're getting in Sandton. There's quite a big component. Nearly 20% of these units have gone to African investors outside of South Africa, so a different market. Yeah, we're very excited about the development.
On the ESG side, we've built pretty much an energy business in Growthpoint today. We've spent ZAR 1 billion on 84 plants, which has a 61 MW peak capacity and ultimately will be providing green power to our clients. We've also entered into a PPA, which is still ramping up. The first leg of it was the acquisition of Boston Hydro. We bought 30% stake into a hydro power station, so that literally doubled the contribution from a green power perspective to our clients. We've got still a big focus on green buildings. We also look at the water and waste. We've got objectives of trying to reduce our impact on the environment entirely. On the people and community side, we still retain our B-BBEE level 1 score.
We've got a very strong contribution to CSR, and our Property Point initiative still continues to create sustainable jobs and make a real material difference. There's a lot of educational programs which have actually delivered quite a wonderful return, and some of those kids are actually coming to work at Growthpoint now, having gone through the programs at school, coming through the bursary programs at university, and then ultimately working at Growthpoint. Moving to right here in this hood, the V&A. Graham is in the house. He can answer all the difficult questions, and David, and there's also a whole bunch of the executives here. Thank you very much. Pretty good news. As Norbert mentioned, obviously the numbers are a little bit skewed by the Table Bay coming out of the numbers.
I mean, that was a big, over ZAR 100 million contributor. We've refurbished that into the InterContinental. That's partially opened. You know, that certainly has offset some of the good growth that we have seen from the actual like for like performance in the portfolio, which was 8.7%. We've also seen strong footfall through the precinct and that has delivered some of these results. The whole precinct is full, so there's not really much vacancy to speak of. In fact, it created a bit of a challenge for management 'cause they nearly didn't have any offices for themselves to occupy.
We've made a bit of a plan and, if we look at December alone, we had 3 million visitors and the total foot traffic through the precinct was over 25 million for the year. We've also successfully completed Dock Road and as of yesterday, if Yasin's correct, we've now sold literally there's only 1 flat left. They've sold another 1 yesterday. Of the 98 there's 1 flat remaining, and those transfers are actually taking place as we speak at the moment. That, all that profit will then be loaded into the second half of this year, which will have an impact on our distribution at Growthpoint. Funding. We've funding all the development at the V&A on balance sheet in the V&A now. We've got ZAR 4.8 billion worth of debt there.
Revolving credit facilities of ZAR 750 and variable debt of ZAR 3.9. Getting very attractive interest rates at 8.3%. If we go and look at the total expense, interest expense, you would've seen that would've kicked up. We, as we finish these developments, the initial years not that enhancing to be honest. Then in the second year as you get escalations and growth, we starting to see that deliver distributable earnings for us. Just on the 3 sectors. Retail performed pretty strong. Just December alone delivered ZAR 1.4 billion in turnover in the precinct. ZAR 11 billion of sales for the year, 7% up on prior period.
The trading density of 9,200 a square meter is pretty much the highest in the country, and in one of these super regional shopping centers and strong rental growth when we renew leases at 7.9%. Successfully also completed the Lux Mall. Just to understand, the Lux Mall has, you know, the big 5, all the very fancy stores, but they'll tell you when they open. The reality is the last of them will open in September, so that'll only fall into Growthpoint's 2007 year. It's systematically that these properties these shops are opening. I think Burberry's already open. Offices. These statistics are quite nice to have a look at from an office perspective.
Strong rental growth there, strong renewals, no vacancies. This is nirvana. We actually building office here. We building a 6,000 square meter office, which actually is out on tender and will be behind where the paddle courts are at the moment, behind BP house. Hopefully will be finished by the end of 2027, ultimately. Our hotels. The numbers skewed with Table Bay as mentioned, but if you look at the remaining hotels, they grew at 13.7%. Also to understand that over time we are busy shifting to more operating leases. You're gonna have much more operating exposure, which is reward and risk, right?
If the hotels do very well, we get a much higher return, but if they do poorly, then we will suffer alongside with that. The reality is that we have opened the InterContinental. That will be open by April. All the rooms will be open. I do think you should all, if you get an opportunity, go and have a look. It's a really marvelous product. Totally new look and I think that hotel will perform well. We will open the Cape Town Edition, the Marriott Edition will open in September probably. Or let's say April, August, somewhere like that. August, September. The residential vacancies are full.
There's no vacancies that to mention. We're busy constructing behind the Table Bay where the parking was a new build-to-rent residential development. We did also in December receive 440,000 square meters of new bulk which we will be developing out in the Granger Bay area. It comes with certain. These aren't all the specific requirements and conditions, but the reality is we've still got just short of 100,000 square meters that we have existing bulk, so we have to use that first, and then we start using this bulk. The bulk in phase I, 50% of it has to be residential. There's a whole plan.
We'll be educating the market and investors on exactly the composition and the plan in that development. We'll spend a lot more time on giving you all an understanding of how that rollout's gonna work over the next 10-15 years. The marine industrial is still performing pretty strong, even with the disturbance in the Middle East. In fact, the sort of jury's out whether we'll be a beneficiary potentially, because if you can't go through the Suez Canal and the Strait of Hormuz, then maybe you've got to sail around the Point of Africa and come slum it here in Cape Town. I think we're not quite sure. Only time will tell to see where we go with that.
On the Growthpoint Investment Partners side, George and the team have done well. They've grown assets to ZAR 12 billion. As mentioned earlier, Oria, a big component of that. If we take the 2 funds, we've grown the actual Manco fees by 16%. Both funds, you know, are moving towards the plan is ultimately to IPO these funds. GHPH will probably be the first one in that it's now achieved scale and, one if assuming the markets are conducive and, the plan all works out, hopefully within the next, I don't know, what? 2 years maybe, eh, George? We'll be able to list this fund and provide investors liquidity.
On the student accommodation side, if we can get more money, we'll be able to grow it even quicker because the reality is there is such a big demand for student accommodation and we are actively expanding this portfolio quite aggressively. The whole portfolio on the student side operates under the Thrive Student Living. For you guys going to university, if you wanna look for accommodation, Thrive Student Living is the place to go. All the varsity college studios, et cetera, and so on and so forth. Definitely a big push. Our newest development, which is Howard College, which is right at the entrance of University of KwaZulu-Natal, will be open for next year. Very, very exciting.
Generally, the business is moving in the right direction there. On the Auria side, these are just roughly we've got 852 units available and 717 care center units. As you can see, they're split into 5. San Sereno is in Bryanston. Melrose, obviously Melrose, Johannesburg. Royal in Royal Johannesburg. Coral Cove is in Ballito, Salt Rock area. Woodside is right here in Cape Town. On the capital management side, we still have deep and good access to capital. The markets are kind. Clearly, we're more in the space of reducing debt still at the moment, and we've been able to bring down the debt burden from ZAR 39 billion to just under ZAR 37 billion.
Interest rates are or have been coming down. I think after this week, I'm not quite sure. I mean, our view would be probably that we'll have a slower reduction cycle, so the next review will probably be flat, one would think. Generally, our balance sheet is in a very good state. The one thing that is maybe something to point out is that given that we've had a very specific view that interest rates are, were coming down, we were positioning the interest rate hedging book to take to get the benefit of that. So it is slightly shorter hedged than typically would be the case, but we've got some time on our side.
I'm hoping that in a year and a half, hopefully they would have sorted themselves out in the Middle East and it won't have an impact on Growthpoint per se. Norbert, thank you very much.
All right. Thanks, Eth. I'm just conscious of time, so I'll try and wrap up quite quickly. There are a number of questions online as well that, I guess we need to answer. I think much of what's on this slide has already been said. I mean, I'd like to maybe finish off by sticking to the little cricket analogy. You know, we're definitely feeling a lot more front-footed. We're feeling a lot more positive as a business. We're looking to deploy some capital. Internally, we've made some management changes as well with the appointment of Panico in the chief investment officer role, doing a lot of work for us on understanding our cost of capital, working on, you know, models in relation to the allocation of capital. So I think we're very aware of these dynamics.
There's a question online which talks to, you know, the fact that I've mentioned acquisitions once or twice and whether those might be domestic or offshore. I think, you know, we're open to both. Certainly on the offshore front, you know, we've got existing offshore investments, and in terms of optimizing them, it might require some additional capital from our side. Those are all, you know, part and parcel of what we think about and talk about and deliberate about with our board. You know, obviously the V&A Waterfront we mentioned is gonna have a strong second half as we bring through the residential profits. Growthpoint Australia has given its guidance. It's confirmed its guidance, so there should not be any hiccups in terms of them delivering on their result.
Globalworth remains pretty steady, and we do anticipate some additional asset management fees coming through from GIP following the Auria acquisition. Bottom line of all of this is we are still, notwithstanding what's happened in the Middle East, we're probably almost 3 months into the last 6 months of the financial period. We were anticipating another interest rate cut and modeled another interest rate cut in our numbers. That's probably unlikely to come through as we had anticipated. We don't believe that's gonna have a material impact on the numbers for us through to June. We're still confident of achieving our stated expectation there of DIPS growth of between 3% and 5%.
With the increased payout ratio, that translates to dividend growth of 6%-8% for the full year financial 2026. Before I move to questions, I just wanna take 30 seconds to acknowledge David Green. This is not his formal farewell, but given that we're here at the Waterfront, it's one of the few opportunities, I guess, that one has to thank David for his contribution. I think there will be some we will be saying farewell to David over the next couple of weeks. You know, it's been, for us, it's been a journey with David since 2011 when we acquired the asset in partnership with the PIC. That's a proper innings. It's a 15-year innings, and it's been a good one.
David has really left his mark here on the Waterfront, but I think his legacy would also be carried forward by the exceptional team that he's put in place. We've got the new CEO, Graham, here today, but he's got a good team that he's inherited, and we look forward to ongoing positive contributions from the Waterfront. Yeah, just a very big thank you to David in his absence. Right. So I've got my phone in front of me. There are a couple of questions. We'll try and deal with them. The online ones quickly. We'll come to you in the audience in a moment. I think the first question deals with Aussie dollar hedging and our strategy and what the sort of current costs are of new Aussie dollar hedges.
We're looking roughly at the moment at about 5% all in, I think, on Aussie dollar hedges is what we're being quoted. The pricing is moving up. The costs of hedging is definitely moving up, not only in terms of the rate, but also the spreads. For now, we are sort of on the short end. We're not given where the rates are in Aussie, we're not looking to enter into 3, 5, 7, and 10-year hedges. We're probably looking more at 3- and 6-month hedges and possibly 12 months out.
4 point-
Um-
4.8-ish.
4.8 to 5-odd % in that sort of range. Ja. There's a question number 2 on trading densities and where we see those settling and has the war weakened our outlook for FY 2027. Now, we haven't really made any predictions for 2027. We are in the midst of budgets at the moment. Obviously these factors will be taken into account. Yeah, we haven't really got any sort of firm numbers. We've got board off-site in middle of April, strategy. We'll be finalizing those so that we can give you better information towards the pre-close, I guess, for the year-end results. Estienne, I don't know on the trading density side if you've got a-
Ja, no, look, I mean, I think Gavin is here. I mean, my view would be, and Gav, you can chip in, but that given the interest rate cycle where it is, it is having an impact. I think you're gonna see more inflation, fuel cost inflation with what's happening in the Middle East. That'll impact our shoppers ultimately. It's gonna hit their pockets over the next month, couple of months. I think in the short term, I think retail is going to be a little bit flat, to be honest. I don't know if anybody's got a different view on that. Pretty much in line.
No.
Okay.
I think that, yeah, I mean, we're seeing it. I was just chatting to somebody yesterday, he had to cancel a flight via Qatar and now go via Singapore, and his flight to Australia is gonna cost 50% more than what he had already booked.
Well, my wife was gonna book a trip down to Cape Town.
Yeah. She could always.
You can normally buy tickets at, like, ZAR 2,000-3,000 return. ZAR 6,000.
Yep. It's already happening.
It's definitely happening here already.
Yeah.
We can see what's going on.
Question 3 deals with the.
It's not important.
Balance sheet and how we deploy capital. I think I've answered that in my earlier remark. Question 4 talks to. I'm not sure what the residential portfolio in Romania or
I think it's.
I don't even know if it is anymore. Is it a-
Actually supposed to be residential, I think.
Oh, residential. Yeah, okay.
No, no, it says presidential.
Presidential. Yeah, yeah.
I didn't know.
Yeah. That's exactly what I thought.
If anybody's been to Romania, the president's house must be the biggest building on the planet. It is most impressive.
Yeah.
We don't own that one, but we do have a bit of resi there.
Yeah.
I think it's small in the scheme of things. Yeah.
No, it's the total value is probably less than ZAR 20 million. Maybe that's the question.
Yeah.
My understanding is that they're up for sale.
Yeah, yeah.
As and when, you know, offers are made that offer value to the company, they are, you know, the management do go ahead and sell those.
Correct.
Property expenses, I think there's a question on, you know, it's modest, 2% increase. What's driving that?
Yeah.
Is it cost, you know, better cost management?
Yeah.
We're still seeing improved collections.
Yeah
Improved recoveries across the board. It is fair to say that is now sort of in the base. You know, you can't go and recover 100%. You can recover probably up to 100% many of these expenses. Electricity, we do sometimes make a bit of a profit and a bit of a spread. The bulk of, let's call it, the easy money there, I think has been now done. What's currently, I think I know what those levels are, Nicoline, they're-
About 2 odd%.
But we up in the-
Right
90s now on recoveries on most categories.
Correct.
There's not that much more scope there.
Yeah, look, I think with the impact of solar, I think probably for the next 6 months it'd probably be similar, maybe a little bit higher, but similar. Yeah, obviously going into next year, you know, we'll have to have a look and we'll tell investors what we think about that maybe at the year-end results.
There's a question on logistics demand in KZN.
Yeah.
What we do.
That's good. The development that we're busy doing in Cornubia is obviously targeted at maybe mopping up some of that demand. We're doing roughly about a 30,000 square meter development in Cornubia, which we did the fastest sod turn at 40 degrees on the day you've ever seen with 220 humidity. We are definitely. We do believe there is demand in Natal, and we are busy developing to that demand.
Question 7 talks to the like-for-like growth in office and what's driving that. I think it's all of what you mentioned there.
Mm.
It's pretty much improved recoveries, better letting.
Vacancy
Vacancies coming down. Question 8, Globalworth. You know, it refers to some of my comments on, you know, on us talking to the shareholders and what strategies we working on for the company. I'm not gonna answer that unfortunately, Alex. I mean, it's a public company. We are often, I cringe at what I do say. Because we really cannot be talking about that company and its strategy. It's the board that needs to do that, of that company and the management team that needs to decide. Being a listed entity, you're always particularly sensitive on what we can and can't say.
How is the fee calculated on Auria? The management fee that the funds earn is 1.25% and
Of GAV, hey?
Of GAV, correct. Basically, if you're an isolated over Auria, of the ZAR 3 billion, you're earning 1.25%. What we're deducting off that is the management cost, direct management charge that those senior executives that form part of the asset management come into the calculation, and that gives us then the net incremental fee. That's it.
It's all online.
Yeah.
Um-
I think that's it for you.
Happy to revert to people in the audience who got any questions.
Yeah. Anybody else got questions?
If so, just raise your hand. There's a roving mic.
All good. Thank you very much.
We are around, guys. There's management here from all over the show.
Oops. 1 minute.
No, it's too late. Too late, Nicoline. Too late. No. Management. I'm joking. We'll come back to that one, Nicoline. Yeah, so Growthpoint management, Waterfront management are all in the house. Please feel free to join us for a drink and a snack and ask as many questions as you'd like, offline.
Yeah.
Thank you all very, very much for your time and your attendance. We really appreciate it. We'll be back in 6 months. What's that last question?
It was just line of sight on, so the dividend withholding tax was actually pretty low at 4, just like 4.9 odd%.
In Aussie, yeah.
On the guys' divvy. There's a question just, you know, on the next one, what will it be? I wish we could give you more confidence that we have clear line of sight of where that is. It is so dependent on the nature of the income that is earned and the amount of transactions that happen in the 6 month period, or this next dividend will be what would have happened in the year, and they true it up at the end of the year. It can be anything from 4%-17%, to be honest. It is quite difficult for us to actually predict. We sort of work on average on a 10%. I think that's maybe if you're modeling something, that's what we're using.
Yes, just one last one on Discovery's.
Oh. Verify the exit yield. Yeah, I think the reason why we haven't given an exit yield is because it's very dependent on the timing of when the transaction happens. We haven't really provided an exit yield. We've just kind of given you impact on the actual financial effects on the income next year. Okay. Done.
All right.
Before somebody else asks another question.
Thank you very much, everybody, and see you in 6 months.