Growthpoint PropertiesJSE:GRT -1.02%54 ROE % is 7.18% as of Dec. 2025, which is 10% below its 10-year median of 7.95. GuruFocus rates JSE:GRT with a GF Score™ of 54/100 and a GF Value™ of R8.72 (Significantly Overvalued). The stock has 11 warning signs investors should review. Among 938 REITs companies, Growthpoint Properties ranks better than 62.37% on this metric.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the REIT - Diversified subindustry, Growthpoint Properties's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Growthpoint Properties ROE % vs REITs Industry
For the REITs industry and Real Estate sector, Growthpoint Properties's ROE % distribution charts can be found below:
* The bar in red indicates where Growthpoint Properties's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Growthpoint Properties (JSE:GRT) has a ROE % of 7.18% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Growthpoint Properties and its competitors. This is 10% below median its historical median of 7.95. According to the industry distribution chart, Growthpoint Properties ranks #353 out of 938 companies in the REITs industry, placing it in the top 37.6%.
Is Growthpoint Properties' ROE % too high?
Growthpoint Properties' current ROE % of 7.18% is 10% below median its 10-year median of 7.95. The REITs industry median ROE % is 6.13. Growthpoint Properties' value of 7.18% is 17.1% above this industry median. Based on the distribution chart, Growthpoint Properties ranks #353 out of 938 companies in the REITs industry, which is above the industry midpoint. Overall, Growthpoint Properties has a GF Score™ of 54/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Growthpoint Properties' ROE % compare to VICI and WPC?
According to the REITs industry distribution chart, Growthpoint Properties ranks #353 out of 938 companies for ROE %. This puts Growthpoint Properties in the upper half of its industry. The industry median ROE % is 6.13. Growthpoint Properties' value of 7.18% is 17.1% above this benchmark. While the company's 10-year median is 7.95 vs. the industry median of 6.13, Growthpoint Properties has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a REITs company?
The median ROE % among REITs companies is 6.13, based on 938 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Growthpoint Properties's current ROE % of 7.18% is 17.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Growthpoint Properties and its competitors. For the REITs industry, the median ROE % is 6.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Growthpoint Properties's current ROE % is 7.18%, which is 10% below median its own 10-year median of 7.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Growthpoint Properties stock overvalued right now?
Based on GuruFocus' analysis, Growthpoint Properties (JSE:GRT) is currently considered Significantly Overvalued. The stock's GF Value™ is R8.72, compared to a current price of R17.49 — trading 100.6% above its estimated fair value. The current ROE % is 7.18%, which is 10% below median its 10-year median of 7.95 and 17.1% above the REITs industry median of 6.13. Growthpoint Properties' overall GF Score™ is 54/100 with 11 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Growthpoint Properties (JSE:GRT), the current ROE % is 7.18% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Growthpoint Properties (JSE:GRT) Overvalued in 2026?
Based on GuruFocus' analysis, Growthpoint Properties stock appears to be overvalued.
The current stock price of R17.49 is trading 100.6% above its estimated GF Value™ of R8.72.
GuruFocus considers Growthpoint Properties to be Significantly Overvalued.
Key valuation signals for JSE:GRT:
ROE %: 7.18% (10% below median its 10-year median of 7.95)
GF Value™: R8.72 vs. price of R17.49 (100.6% above fair value)
Industry Position: 17.1% above the REITs median (#353 of 938)
No single metric tells the full story. See the JSE:GRT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Growthpoint Properties Ltd is an international property company mainly engaged in owning and managing property assets in South Africa, Eastern Europe, Australia, and the UK. Its portfolio comprises various kinds of properties such as office parks, office warehouses, motor outlets, logistics and industrial parks, shopping centres, etc. The group's operating segments are Retail, Office, Logistics and Industrial, Trading and Development, V&A Waterfront, GHPH, GSAH, Lango, GOZ, and GWI. Maximum revenue is generated from its Retail segment, which includes income generated from a portfolio of properties, comprising shopping centres, with the balance being standalone, single-tenanted properties. It includes regional, community, neighbourhood, retail warehouses and speciality centres.
54GF Score
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