The V&A Waterfront remains a strong performer for Growthpoint Properties, buoyed by increased international travel. <\/p>\n\n\n\n
In a trading update for the quarter ending September 30, 2025, Growthpoint stated that the V&A Waterfront is expected to experience significant growth over the next three to five years. <\/p>\n\n\n\n
This comes amid a strong development pipeline for the South African icon, which is owned 50-50 with the Public Investment Corporation (PIC). <\/p>\n\n\n\n
In Q1, tourism growth remained steady, with international and domestic passenger arrivals at Cape Town International Airport increasing by 5%. <\/p>\n\n\n\n
Hotel demand remained robust, supported by tourism and events. Average daily rates increased by 16% compared to the same period last year.<\/p>\n\n\n\n
The Waterfront also saw a strong performance from hotels under an operating agreement.<\/p>\n\n\n\n
However, the group noted that the current performance of the iconic property has been affected by the decommissioning and redevelopment of The Table Bay Hotel.<\/p>\n\n\n\n
Earnings before interest and tax (EBIT) grew by 5% compared to the same three months in 2024. <\/p>\n\n\n\n
Like-for-like EBIT growth was up 16.0%, with the group underpinned by an 8% increase in retail sales, which boosted turnover-based rental income. <\/p>\n\n\n\n
The group\u2019s office portfolio continued to perform strongly, with zero vacancies and sustained demand contributing positively.<\/p>\n\n\n\n
The marine & industrial sector in the Waterfront also saw improvement, driven by increased demand for casual berths.<\/p>\n\n\n\n
Growthpoint said that investment in the precinct continued during the period, which included the following projects: <\/p>\n\n\n\n
Excluding residential sales, EBIT for FY26 is expected to be marginally higher than the prior year. <\/p>\n\n\n\n
This is primarily driven by the strong performance in the retail and hospitality sectors, which benefit from increased international tourism. <\/p>\n\n\n\n
Outside of the temporary loss of income from the Table Bay Hotel and the Luxury Mall, the group said that the Waterfront\u2019s operational performance is robust. <\/p>\n\n\n\n
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