Despite the operating environment becoming more challenging across all its geographies, Growthpoint Properties is keeping its full-year 2026 guidance unchanged.The property group said on Wednesday interest rates are higher than initially anticipated, inflationary pressures are elevated, and there is continued pressure on consumers which is affecting tenant affordability. “Currently the indicative outcome remains aligned to prior guidance, though we have adopted a more conservative outlook beyond the guidance period,” the group said in an update for the nine months ended March.“The current uncertainty reinforces the importance of our disciplined approach to capital allocation, cost management and balance sheet strength.”The group expects distributable income per share for the year ending June to increase by between 3% and 5% and dividend per share growth of between 6% and 8%.It said operational performance has improved across all three domestic portfolios, supported by a combination of targeted strategic initiatives aimed at enhancing portfolio quality and key operating metrics. Its flagship V&A continues to deliver strong performance and remains a reliable cash generator.“The V&A Waterfront (V&A) remains a key investment and is expected to deliver significant growth in the next three to five years, supported by a strong development pipeline. However, we remain mindful of the potential impact geopolitical tensions may have on tourism-dependent revenue streams,” the group said.It said while tourism trends are still broadly supportive, with domestic and international arrivals showing growth, geopolitical tensions, particularly in the Middle East, are impacting travel patterns, flight connectivity and cruise activity.During the period, the group continued its capital recycling programme aimed at improving its portfolio quality, while minimising the short-term dilutive impact of selected transactions. Capital released through disposals has been applied to debt reduction, preserving balance sheet flexibility, funding strategically aligned development opportunities and selectively reinvesting in assets with stronger long-term relevance.In the nine-month period, Growthpoint sold and transferred 21 assets for R2bn, realising a profit of R2.7m to book value. A further eight properties, valued at R2.9bn, which includes the disposal of its 55% interest in the Discovery building, were transferred after April 1. Anticipated transfer of the group’s portion of The Bridge (27.5%) in Greenacres, Gqeberha, is expected by the end of June for R150.3m. Total disposals of R5.1bn are projected for the 2026 financial year, surpassing its R3.5bn target.It incurred R792.9m of development and capital expenditure across the South African portfolio. The largest projects included the redevelopment of 36 Hans Strijdom Avenue in Cape Town at R110.3m, Longbeach Mall in Noordhoek at R82.1m and upgrades at La Lucia Mall in Durban at R39.8m, N1 City Mall in Goodwood at R35.5m, and Alberton City in Alberton at R31.6m.Estienne de Klerk will assume the role of group CEO on July 1, when Norbert Sasse steps down. Sasse will retain full responsibility for the 2026 financial year, and will continue with the company in an executive capacity until the end of December when his contract expires.Growthpoint will release its full-year results on September 9.