Business

Discovery scores big after spending R4 billion to buy its head office with its own Woolworths

Luke Fraser

 ·26 Aug 2026

Discovery is expecting a massive rise in its earnings for the financial year ending 30 June 2026, with headline earnings benefiting from the expiry of its lease at its Sandton office.

Earlier this year, Discovery announced it would buy its own head office building, 1 Discovery Place, in Sandton, in a R4 billion deal funded by debt.

Discovery moved to its current offices in 2018 and believes that it will be there for over seven years when its current lease agreement ends.

The massive office space has several amenities, including its own Woolworths Food Store, a Seattle Coffee, Home Affairs Services, a gym and a rooftop terrace.

The current owners, Growthpoint Properties, said the move lowers its office exposure and lowers single-tenant asset concentration in the Sandton node, with the REIT increasingly targeting the Western Cape.

In a trading statement for the year ended June 2026, Discovery said that its normalised profit from operations is expected to increase by between 15% and 20%.

Discovery South Africa is expected to grow by 13% to 18%, and the Vitality composite by 18% to 23%.

Normalised headline earnings are expected to rise by 18% to 23%, driven by lower finance costs, in line with the group’s planned reduction in financial leverage.

Headline earnings are expected to increase by between 31% and 36%, following the gain on termination of the lease at 1 Discovery Place.

Earnings per share will thus rise by between 35% and 40% to 1893.0 cents and 1963.1 cents.

Headline earnings per share are expected to rise by between 31% and 36% to between 1895.6 cents and 1967.9 cents

Normalised headline earnings per share are expected to rise by between 18% and 23% to a range between 1735.1 cents and 1808.6 cents.

Exact details on Discovery’s results will be available when Discovery reports its results for the year, which are expected to be released on 3 September 2026.

Response to the trading statement has seen the group’s share price rise by over 3% since the start of trade today, 26 August, valuing the company at around R175 billion.

Images of 1 Discovery Place