GRIT REAL ESTATE INCOME GROUP LIMITED (Registered in Guernsey) (Registration number: 68739) LSE share code: GR1T SEM share codes (dual currency trading): DEL.N0000 (USD) / DEL.C0000 (MUR) ISIN: GG00BMDHST63 LEI: 21380084LCGHJRS8CN05   ("Grit" or the "Company" or the "Group")

 

Grit Real Estate Income Group Limited, a leading Pan-African real estate company focused on investing in, developing and actively managing a diversified portfolio of assets underpinned by predominantly US Dollar and Euro denominated long-term leases with high quality multi-national tenants, today announces its unaudited results for the six and twelve months ended 30 June 2025.

Bronwyn Knight, Chief Executive Officer of Grit Real Estate Income Group Limited, commented:

“Grit’s performance reflects persistent macroeconomic headwinds, particularly policy changes in the United States that have triggered capital outflows from emerging markets. These shifts have tightened liquidity conditions and disrupted demand-supply dynamics across the continent, prompting a widespread reassessment of real estate valuations and exerting downward pressure on distributable earnings.

Investor sentiment remained cautious, with subdued appetite widening bid-ask spreads and delaying the Group’s asset recycling programme. Elevated finance costs further constrained free cash flow, contributing to covenant-related liquidity pressures.

Despite these headwinds, Grit remains focused on repositioning the portfolio toward more defensive, higher-yielding asset classes such as diplomatic housing, data centres, light industrial and logistics, and Business Process Outsourcing (BPO) infrastructure, supported by strong tenant demand and long-term sovereign-grade leases.

The Group continues to deliver against key performance indicators within its control by actively mitigating exogenous factors to support long-term sustainability, while acknowledging the impact of valuation pressures and constrained distributable earnings in the short term.

It is especially encouraging to note that several initiatives introduced in prior reporting periods are increasingly delivering tangible results. These include a reduction in administration expenses, the maintenance of a long lease profile, strong contractual rental collections and increased portfolio occupancy.

Looking ahead, our diversified footprint - both geographically and across asset classes - continues to position the portfolio defensively, with a substantial portion of income secured through long-term hard currency leases. This solid foundation enables Grit to provide a degree of income stability in an otherwise volatile capital environment, while addressing balance sheet constraints through disciplined capital recycling and asset management initiatives.”

Financial and Portfolio highlights

	Six months ended 30 June 2025	Six months ended 30 June 2024	Increase/ Decrease	Twelve months ended 30 June 2025	Twelve months ended 30 June 2024	Increase/ Decrease
Property portfolio net operating income (proportionate8)	US$29.1m	US$31.3m	-7.1%	US$64.2m	US$63.5m	+1.1%
EPRA cost ratio (including associates) 2	17.0%	12.7%	+4.3%	15.6%	13.3%	+2.3%
Net finance costs	US$29.9m	US$27.1m	+10.3%	US$59.8m	US$48.7m	+22.8%
Weighted cost of debt	9.3%	9.4%	-0.1%	9.4%	10.0%	-0.6%
Revenue earned from multinational tenants6	84.7%	85.4%	-0.7%	84.7%	85.4%	-0.7%
Income produced in hard currency7	91.7%	94.3%	-2.6%	91.7%	94.3%	-2.6%

 

 

 

	As at 30 June 2025	As at 30 June 2024	Increase/ Decrease
EPRA NRV per share1	US$48.4cps	US$57.9cps	-US$9.5cps
IFRS NAV per share	US$35.5cps	US$43.9cps	-US$8.4cps
Total Income Producing Assets3	US$988.8m	US$971.2m	+US$17.6m
Contractual rental collected	91.3%	91.1%	+0.2%
WALE4	4.6 years	5.2 years	-0.6 years
EPRA portfolio occupancy rate5	92.0%	89.8%	+2.2%
Grit proportionately owned lettable area (“GLA”)	361,941m2	356,036m2	+5,905m2
Weighted average annual contracted rent escalations	2.9%	2.8%	+0.1%

Notes

1	Explanations of how EPRA figures and Distributable earnings per share are derived from IFRS are shown in note 16.
2	Based on EPRA cost to income ratio calculation methodology which includes the proportionately consolidated effects of associates and joint ventures.
3	Includes controlled Investment properties with Subsidiaries, Investment Property owned by Joint Ventures, deposits paid on Investment properties and other investments, property plant and equipment, intangibles, and related party loans.
4	Weighted average lease expiry (“WALE”).
5	Property occupancy rate based on EPRA calculation methodology - Includes joint ventures.
6	Forbes 2000, Other Global and pan African tenants.
7	Hard (US$ and EUR) or pegged currency rental income.
8	Property net operating income (“NOI”) is an Alternative Performance Measure (“APM”) and is derived from IFRS revenue and NOI adjusted for the results of joint ventures. A full reconciliation is provided in the financial review section below.

Summarised results commentary:

The sustained high interest rate environment continued to weigh on African real estate markets, dampening investor appetite and constraining asset pricing negotiations. Elevated inflation added further pressure on consumers, contributing to broad-based valuation headwinds across the sector.

For Grit, the elevated cost of capital delayed progress on its asset disposal programme, while increased finance costs and downward property revaluations placed strain on covenant metrics - most notably the Group’s interest cover ratio. While funder support remains intact, the Group is actively evaluating strategic options to optimise its capital structure and establish a more resilient, liquid, and growth-oriented platform.

As a result, and as previously guided, the Group adopted a prudent approach to business operations, prioritising tenant retention and lease security amid a slowdown in corporate expansion. The Group continues to benefit from its quality portfolio with leading ESG credentials, increasing portfolio occupancy for the six months ended 30 June 2025 by 2.2% to 92.0% year-on-year, with 91.7% of income produced in US dollar, Euro or pegged currencies. 84.7% of revenue is earned from multinational tenants (30 June 2024: 85.4%).

In the context of the current operating environment, the Group balanced longer-term lease renewals with reversionary rates, maintaining a weighted average lease profile of 4.6 years (30 June 2024: 5.2 years). Strong focus on contractual rental collections was maintained, with an average collection rate of 91.3%, a 0.2% increase on the prior year comparative period.

The Group’s strategic pivot toward more defensive, higher-yielding asset classes - including Business Process Outsourcing (BPO) infrastructure, data centres, light industrial and logistics facilities, and diplomatic housing - was tempered by constrained access to development capital, despite a robust committed pipeline and strong co-investor support.

Nevertheless, during the review period, Grit advanced its sector-focused development strategy through the establishment of Africa’s largest embassy accommodation platform. The consolidated entity, DH Africa, represents a scaled and specialist vehicle designed to better serve diplomatic clients, including the US Government and other sovereign stakeholders.

This enhanced platform not only expands Grit’s exposure to resilient, income-generating assets but also unlocks additional revenue streams through development fees and asset management income.

Property values, based on Grit’s proportionate share of the total portfolio, including joint ventures, contracted by 1.8% over the 12-month period ended 30 June 2025 to US$857.6 million (30 June 2024: US$873.0 million). The reduction was primarily as a result of negative fair value adjustments of US$43.8 million, a 5.0% decrease, offset by positive foreign currency movements of US$14.9 million and the consolidation of Rosslyn Grove diplomatic housing (DH3) development in Kenya.

The Group’s proportionate Property Portfolio Net Operating Income (NOI) declined by 7.1% over the comparative six-month period to 30 June 2025, but recorded a 1.1% increase over the 12-month period ended 30 June 2025. This year-on-year increase was offset by a US$9.6 million impact as a result of changes in non-controlling interests, stemming from the June 2024 disposal of Bora Africa Group to Gateway Real Estate Africa Limited (“GREA”), reducing Grit’s effective ownership from 100% to 53.24%. NOI came under further pressure as a result of rental reversions to secure key long-term lease renewals and lease concessions granted, particularly within the retail sector.

For the six months to 30 June 2025, EPRA net reinstatement value (“NRV”) declined by US$9.5 cents per share to US$48.4 cents per share (30 June 2024: US$57.9 cents per share), mainly due to the decrease in the fair value adjustment made on investment properties during the period. This follows continued downward pressure on market rental rates as a result of rising inflation and unemployment, increased import duties and consumer pressure. This material contraction reflects broader valuation headwinds across African real estate markets, especially retail, and signals continued NAV pressure amid persistent inflation and global interest rate volatility

The IFRS NAV concomitantly contracted meaningfully over the reporting period, reflecting the broader valuation pressures across African real estate markets. As at 30 June 2025, IFRS NRV declined to US$35.5 cents per share, down from US$43.9 cents per share in the prior year.

Despite these valuation challenges, Grit’s NRV remains underpinned by a portfolio of income-producing assets valued at US$988.8 million, with 91.7% of revenue earned in hard or pegged currencies and 84.7% derived from multinational tenants. The Group’s disciplined approach to capital recycling, lease renewals, and cost containment has helped mitigate the impact of external pressures, while its strategic pivot toward defensive asset classes and sovereign-grade leases provides a foundation for long-term value recovery.

During the twelve-month period ended 30 June 2025, administrative expenses reported under IFRS declined by 1.4% year-on-year, despite the full-year consolidation of costs from the Group’s project development arm Africa Property Development Managers Limited (“APDM”), totalling US$4.0 million. Excluding the consolidation of APDM, underlying administrative expenses decreased by 13.9% year-on-year, reflecting improved operational efficiency.

For the six-month period ended 30 June 2025, administrative expenses under IFRS fell by 9.7% year-on-year. Adjusting for APDM-related costs, the decline was even more pronounced at 21.6%, highlighting the tangible impact of the Group’s targeted savings initiatives.

Administrative expenses as a percentage of total income-producing assets reduced to 1.26% for the six months ended 30 June 2025, down from 1.63% for the prior comparable period. This is closely aligned with the Group’s near-term target of 1.25%

The weighted average cost of debt for the Group, reduced to 9.41% at 30 June 2025, down from 10.00% in the prior 12-month comparative period. For this period, finance charges increased by 20.8% mainly due to the full twelve- month impact of finance costs associated with the acquisition of GREA (the comparative period reflected a seven- month impact following GREA’s consolidation on 30 November 2023. Despite higher borrowings, the impact was partially mitigated by marginal reductions in global interest rates and the strategic use of interest rate derivatives.

During the six-month period ended 30 June 2025, finance charges increased by 3.3% versus the comparable period, primarily due to increased borrowings.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Grit Real Estate Income Group Limited
Bronwyn Knight, Chief Executive Officer	+230 269 7090
Morne Reinders, Investor Relations	+27 82 480 4541
Cavendish Capital Markets Limited – UK Financial Adviser
Tunga Chigovanyika/ Edward Whiley (Corporate Finance)	+44 20 7220 5000
Justin Zawoda-Martin / Daniel Balabanoff / Pauline Tribe (Sales)	+44 20 3772 4697
Perigeum Capital Ltd – SEM Authorised Representative and Sponsor
Shamin A. Sookia	+230 402 0894
Darren M. Chinasamy	+230 402 0885
Capital Markets Brokers Ltd – Mauritian Sponsoring Broker
Elodie Lan Hun Kuen	+230 402 0280

NOTES:

Grit Real Estate Income Group Limited is the leading Pan-African real estate company focused on investing in, developing and actively managing a diversified portfolio of assets in carefully selected African countries (excluding South Africa). These high-quality assets are underpinned by predominantly US$ and Euro denominated long-term leases with a wide range of blue-chip multi-national tenant covenants across a diverse range of robust property sectors. The Company is committed to delivering strong and sustainable income for shareholders, with the potential for income and capital growth. The Company holds its primary listing on the Main Market of the London Stock Exchange (LSE: GR1T and a secondary listing on the Stock Exchange of Mauritius (SEM: DEL.N0000).

Further information on the Company is available at www.grit.group.

Directors:

Peter Todd (Chairman), Bronwyn Knight (Chief Executive Officer) *, Gareth Schnehage (Chief Financial Officer) *, David Love+, Catherine McIlraith+, Cross Kgosidiile, Lynette Finlay + and Nigel Nunoo+.

(* Executive Director) (+ independent Non-Executive Director)

Company secretary: Intercontinental Fund Services Limited

Corporate service provider: Mourant Governance Services (Guernsey) Limited

Registered office address: PO Box 186, Royal Chambers, St Julian's Avenue, St Peter Port, Guernsey GY1 4HP

Registrar and transfer agent (Mauritius): Onelink Ltd

SEM authorised representative and sponsor: Perigeum Capital Ltd

UK Transfer secretary: MUFG Corporate Markets

Mauritian Sponsoring Broker: Capital Markets Brokers Ltd

A presentation of these results will be made available on the Company website: https://grit.group/investor-relations/  

 

CHAIRMAN’S STATEMENT

Grit is a leading, woman-led real estate platform, delivering property investment and associated real estate services across Africa. Since its founding in 2014, the Group has pioneering forward-thinking investment models and strategic alliances that extend beyond conventional real estate approaches. Through an unwavering commitment to social impact, energy efficiency, and carbon reduction, it has actively shaped the built environment with a long-term vision for sustainability across its portfolio.

The year under review was marked by heightened macroeconomic uncertainty across the African continent, driven by global policy shifts, inflationary pressures, and constrained liquidity conditions.

Against this backdrop, the Group continued to execute its Grit 2.0 strategy, prioritising capital recycling, operational efficiency, and a pivot toward defensive, income-generating asset classes. Our strategic focus on sovereign-grade leases and hard currency income streams has proven instrumental in navigating valuation headwinds and sustaining portfolio resilience.

The successful consolidation of DH Africa and the creation of the continent’s largest embassy accommodation platform mark a significant milestone in Grit’s evolution. This transaction not only deepens our sectoral expertise but also enhances scale, income diversity, and long-term alignment with diplomatic and sovereign clients.

Financial and operational performance

Grit’s financial performance for the year reflects the impact of valuation pressures and constrained distributable earnings. EPRA Net Reinstatement Value (NRV) contracted by 16.4% to US$48.4 cents per share, primarily due to negative fair value adjustments of US$43.8 million across the portfolio. IFRS NRV declined to US$35.5 cents per share, underscoring the broader reassessment of real estate values across the continent, particularly within the retail sector.

Despite these challenges, operational metrics remain robust. EPRA portfolio occupancy improved to 92.0%, supported by tenanting initiatives in Kenya and Mauritius. Contractual rental collections increased to 91.3%, while 91.7% of revenue was earned in hard or pegged currencies. Administrative expenses declined by 13.9% year-on-year on a like-for-like basis, reflecting the tangible impact of cost containment initiatives and strategic outsourcing.

Capital recycling and debt reduction

The Group remains firmly committed to its accelerated strategy to reduce debt and optimise the balance sheet. During the period, US$200 million in non-core assets were identified for disposal, with advanced negotiations underway for key divestments including Tamassa Lux Resort and Artemis Curepipe Hospital. Proceeds from these disposals will be strategically redeployed into higher-yielding, more defensive investments.

The weighted average cost of debt reduced to 9.41%, down from 10.27% in the prior year, supported by proactive interest rate hedging and refinancing initiatives. As at 30 June 2025, 73.4% of US$ SOFR-linked debt was hedged, and further improvements to the interest cover ratio are expected as disposals progress and capital is reallocated.

Dividends

In light of the distributable loss of US$12.4 million for the twelve-month period ended 30 June 2025, and the Group’s continued focus on balance sheet optimisation, the Board has resolved not to declare a dividend.

Outlook

The Board and management of Grit recognise that a recalibration of the Group’s capital structure is necessary to better align the business with its long-term strategic objectives.

As part of ongoing asset recycling and deleveraging efforts, capital reorganisation is expected to support:

• Improved free cash flow generation through targeted debt reduction as well as enhanced flexibility in meeting near-term obligations and dividend distribution potential.

More critically, the Company aims to unlock value-accretive growth by accelerating the development of GREA’s secured pipeline of high-yield projects in:

 

• BPO infrastructure
• Data centres
• Light industrial/logistics assets
• Diplomatic housing infrastructure.

These core sectors remain underpinned by structural demand and robust tenant interest. However, their realisation is currently constrained by limited access to development capital, despite strong co-investor support.

Management is carefully assessing all options to optimise the capital base, with a view to creating a sustainable platform that balances liquidity, resilience, and growth.

On behalf of the Board, I extend our sincere appreciation to our shareholders for their continued support and confidence in Grit’s strategic direction. We remain committed to delivering on our mandate and advancing our role as a leading impact-driven real estate platform across Africa.

Peter Todd

Chairman

12 August 2025

 

CHIEF EXECUTIVE OFFICER’S STATEMENT

Introduction

 

Notwithstanding challenging market conditions, the Group continues to implement its Grit 2.0 strategy, focused on prudent capital allocation, cost reduction, active interest rate management and balance sheet optimisation through capital recycling and investment in more defensive, higher-yielding asset classes.

Operational review

The twelve months to 30 June 2025 were marked by heightened macroeconomic volatility across key African markets, driven largely by global trade disruptions and domestic fiscal constraints. The re-escalation of tariff wars following policy shifts in the United States has triggered capital outflows from emerging markets, resulting in tighter liquidity conditions and elevated borrowing costs across the continent. This has had a direct impact on real estate investment appetite, with delays in corporate expansion and tenant decision-making becoming increasingly pronounced.

In Mozambique, socio-political instability and regulatory uncertainty have compounded these pressures, leading to a slowdown in foreign direct investment and a more cautious stance from multinational occupiers. Across the broader region, elevated commercial lending rates - particularly in Kenya (15% - 20%) and Ghana (28%) - have constrained access to affordable finance, further delaying development pipelines and lease commitments.

Consumer pressure has intensified amid rising inflation and currency volatility, with household purchasing power eroded by elevated food and energy costs. This has translated into weaker retail performance, with tenants increasingly seeking lease renegotiations, shorter lease terms, and rental concessions to preserve occupancy. As a result, the retail sector remains most exposed to affordability constraints, while light industrial, business processing and data centre assets have shown relative resilience due to their alignment with logistics and digital infrastructure demand.

Valuation headwinds persist across most asset classes, with retail properties facing the steepest declines. This is attributed to suppressed consumer demand, increased import duties, and inflation-linked cost pressures that have undermined tenant profitability and rental growth.

In response, Grit has adopted a more conservative approach to tenant risk and expansion strategy, prioritising defensive asset classes and stable jurisdictions.

These challenges impacted our net asset value, with EPRA NRV per share for the six months to end June 2025 contracting by US$9.5 cents per share or 16.4% to US$48.4 cents per share. Likewise, IFRS NAV contracted to US$35.5 cents per share.

For the twelve-month period ended 30 June 2025, the Group’s distributable performance turned negative, recording a loss of US$12.4 million compared to earnings of US$1.2 million in the prior year. This decline was largely driven by lower net operating income, the impact of rental reversions in the retail sector, and reduced economic interest following the June 2024 disposal of the Bora Africa Group to GREA, which lowered the Group’s effective ownership from 100% to 53.24% and contributed to a US$9.6 million contraction in NOI at a GRIT economic interest level.

Additional pressures on NOI arose from rental reversions to secure key long-term lease renewals and lease concessions granted, particularly within the retail sector.

Property Portfolio Revenue increased by 2.2% compared to the prior year but decreased by 6.4% for the six-month period ended 30 June 2025. Similarly, the Group’s Proportionate NOI recorded a 1.1% increase over the 12-month period ended 30 June 2025 but declined by 7.1% over the six-month period.

Contractual rental collections improved to 91.3% from 91.1% at 30 June 2024, whilst 91.7% of the Group’s revenue is earned in hard currency or from hard currency-linked long-term leases with mainly multinational, blue-chip tenants.

EPRA portfolio occupancy improved to 92.0% as at 30 June 2025, a 2.2% increase on the prior six months, mainly as a result of tenanting initiatives at Eneo at Tatu Central in Kenya, and Unity Building at The Precinct in Mauritius, which is now fully let.

Cost containment

During the twelve-month period ended 30 June 2025, administrative expenses reported under IFRS decreased by 1.4% year-on-year, notwithstanding the full-year inclusion of costs associated with the Group’s project development subsidiary, APDM. These expenses totaled US$4.0 million, compared to US$2.1 million in the prior year, when APDM was consolidated for only seven months following its effective date of 30 November 2023.

Owing to the limited development activity undertaken during the period, APDM-related costs were recognised as administrative expenses rather than capitalised. Excluding APDM, underlying administrative expenses registered a notable year-on-year decline of 13.9%, underscoring improved operational efficiency.

Focusing on the six-month period ended 30 June 2025, administrative expenses under IFRS declined by 9.7% year-on-year. When adjusted for APDM, the decrease improved to 21.6%, illustrating the substantive impact of the Group’s targeted savings initiatives.

Administrative expenses as a proportion of total income-producing assets fell to 1.26% for the six months ended 30 June 2025, down from 1.63% in the prior comparable timeframe. This metric closely mirrors the Group’s short-term target of 1.25%, further affirming progress toward its medium-term goal of 1.0%.

The Group’s strategic partnership with Broll Property Group (“Broll”) effective from 1 February 2025, is expected to further support Grit’s medium-term objective of reducing costs. This partnership is expected to deliver annual cost savings of approximately US$1 million and streamline operational efficiencies, enabling the Group to focus on its core expertise in impact real estate development, strategic asset management and retaining key tenant relationships.

Finance costs

For the twelve months ended 30 June 2025, finance charges increased by 20.8% year-on-year, largely reflecting the full-year impact of finance costs associated with the acquisition of GREA. In the comparative period, only seven months of GREA-related finance charges were recognised, following its consolidation effective 30 November 2023.

Despite increased borrowings, the overall impact was partially offset by modest reductions in global interest rates and the Group’s proactive use of interest rate derivatives. These measures contributed to a reduction in the weighted average cost of debt to 9.41% as at 30 June 2025, down from 10.00% in the prior year.

During the six-month period to 30 June 2025, finance charges rose by 3.3% compared to the prior period, primarily attributable to higher borrowing levels in support of the Group’s strategic growth initiatives.

During the reporting period, the Group increased its hedging positions to 71.8% of its US$ SOFR exposure from 60.8% in the corresponding period. Further hedging and capital allocation, particularly from disposals, is expected to improve the Group’s interest cover ratio (ICR) over the medium term.

Creation of largest embassy accommodation platform in Africa and equity issue

On 20 June 2025, the Group officially implemented the creation of Africa’s largest embassy accommodation platform through the combination of DH Africa and Verdant Ventures as well as Verdant Property Holdings Ltd’s (collectively “Verdant”) diplomatic housing businesses.

This transaction aligns with the Grit 2.0 strategy to streamline operations and deepen sector-focused expertise within its development subsidiary, GREA.

In exchange for increasing its stake to 99.99% in DH Ethiopia and DH Kenya, and gaining access to DH Ghana, Grit issued 24,742,277 new ordinary shares of no-par value  at an issue price of US$33.90 cents per share to Verdant, making Verdant a significant minority shareholder. These shares were listed on the LSE and SEM effective 20 June 2025.

DH Africa now encompasses three income-generating assets with a combined valuation of US$206.9 million, supported by long-term, sovereign-grade leases and a WALE of 5.2 years.

The platform’s future development pipeline includes US$130 million in projects across key geographies, which will enhance scale and income diversity once substantially pre-let. This enhanced structure positions Grit to benefit from the US State Department’s reform agenda and unlock recurring development and management income, reinforcing its role as a high-quality partner for diplomatic accommodation across Africa.

The full financial and strategic impact of the transaction is expected to be realised in the coming financial years.

Asset recycling

In the face of continued global market volatility and liquidity constraints across key African jurisdictions, the Group remains resolute in executing its asset disposal strategy - aimed at deleveraging the balance sheet and reducing the weighted average cost of capital. Central to this approach is the divestment of non-core and non-strategic assets, facilitating the redeployment of capital into higher-yielding, more resilient investments aligned with the Group’s long-term objectives.

As part of its strategic repositioning, the Group has earmarked an additional US$200 million in non-core assets for disposal. While macroeconomic headwinds (outlined earlier in this report) have contributed to delays in the sale of Tamassa Lux Resort and Artemis Curepipe Hospital, negotiations remain active. Concurrently, meaningful progress is being made on the potential divestment of Anfa Place Mall, alongside other selected retail and non-core corporate accommodation assets.

Change to accounting reference date and financial year end

Shareholders are referred to the RNS announcement of 18 June 2025, where the Group announced a change to its accounting reference date and financial year end from 30 June to 31 December.

The Board considers that this change will better align the reporting period to the operations of the business across all subsidiaries in the Group, as following this change all Group companies will follow the same accounting reference date. In addition, following a mandatory audit firm rotation, the change will allow the Company’s recently appointed auditors, MacIntyre Hudson LLP with Baker Tilly CI Audit Limited sufficient time to better understand the Group and complete their planning to ensure an efficient audit.

Accordingly, the Company’s next audited financial statements will be prepared for the 18-month period ending 31 December 2025 and will be required to be published on or before 30 April 2026.

Thereafter, the Company will publish each year its unaudited interim results for the 6 month ending 30 June by 30 September, and its audited financial statements for the 12 months ending 31 December by 30 April in accordance with the Disclosure Guidance and Transparency Rules.

Outlook 

Looking ahead, management remains focused on implementing a disciplined optimisation strategy that prioritises income resilience, cost efficiency, and capital redeployment.

Our recovery and business enhancement plan remains structured around six key pillars:

• Deepening capital partnerships through closer engagement with existing and new funders to lower the cost of funding
• Strengthening operational performance through tenant retention, rental collections, and sustainable real estate delivery, while improving profitability via reduced operating costs and enhanced recoveries.
• Recycling non-core assets to unlock capital for debt reduction and reinvestment into higher-yielding, strategically aligned properties.
• Deleveraging the balance sheet to create headroom for future growth and reduce overall funding costs.
• Streamlining operations by consolidating assets into specialised substructures and leveraging technology to enhance systems, processes, and workforce efficiency.
• Driving down administrative expenses with a clear target of reducing costs to 1.0% of total income-producing assets over the medium term.

Presentation of financial results

The condensed unaudited consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the IASB. Alternative performance measures (APMs) have also been provided to supplement the condensed financial statements as the Directors believe that this adds meaningful insight into the operations of the Group and how the Group is managed. European Public Real Estate Association (“EPRA”) Best Practice Recommendations have been adopted widely throughout this report and are used within the business when considering the operational performance of our properties. Full reconciliations between IFRS and EPRA figures are provided in notes 16a to 16b. Other APMs used are also reconciled below.

“Grit Proportionate Interest" income statement, presented below, is a management measure to assess business performance and is considered meaningful in the interpretation of the financial results. Grit Proportionate Interest Income Statement (including “Distributable Earnings”) are alternative performance measures. In the absence of the requirement for Distributable Reserves in the domicile countries of the group, Distributable Earnings is utilised to determine the maximum amount of operational earnings that would be available for distribution as dividends to shareholders in any financial period. This factors the various company specific nuances of operating across a number of diverse jurisdictions across Africa and the investments’ legal structures of externalising cash from the various regions. The IFRS statement of comprehensive income is adjusted for the Group proportionate share of the income statement line items of properties held in joint ventures and associates. This measure, in conjunction with adjustments for non-controlling interest (for properties consolidated by the group, but part owned by minority partners), form the basis of the Group’s distributable earnings build up, which is alternatively shown in Note 16b – Distributable Earnings.

Performance for the six months ended 30 June 2025

For the six months ended 30 June 2025, the Group reported a distributable loss of US$7.7 million, compared to US$4.2 million for the corresponding period in 2024. The key drivers for the year-on-year variance is net operating income which was largely impacted by rental reversions to secure key long term lease renewals, lease concessions granted, particularly within the retail sector as well as the impact of foreign exchange on rental income in Ghana. Although global interest rates remained elevated, most notably on SOFR-linked debt, the increase in finance charges contributed only a modest 2.9% year-on-year increase in the distributable loss.Offsetting these pressures, the Group continued to drive down administration expenses through targeted cost saving initiatives. As a result, administration expenses decreased by 16.8% year-on-year.

IFRS Income statement to distribution reconciliation	IFRS for the six months ended 30 June 2025	Extracted from Associates	GRIT Proportionate Income statement	Split NCI	GRIT Economic Interest	Distributable earnings for the six months ended 30 June 2025
	US$'000	US$'000	US$’000	US$'000	US$'000	US$'000
Gross rental income	33,259	3,467	36,726	(10,053)	26,673	26,647
Property operating expenses	(6,870)	(746)	(7,616)	1,466	(6,150)	(6,132)
Net operating profit	26,389	2,721	29,110	(8,587)	20,523	20,515
Other income	24	-	24	9	33	37
Administration expenses	(8,175)	(75)	(8,250)	2,499	(5,751)	(6,154)
Net impairment charge on financial assets	(454)	-	(454)	133	(321)	21
Profit / (loss) from operations	17,784	2,646	20,430	(5,946)	14,484	14,419
Fair value adjustment on investment properties	(23,425)	(684)	(24,109)	8,456	(15,653)	-
Fair value adjustment on derivative financial instruments	(2,882)	-	(2,882)	79	(2,803)	-
Share of profits from joint ventures	503	(503)	-	-	-	-
Foreign currency (losses) / gains	(2,863)	(78)	(2,941)	(505)	(3,446)	-
Loss on extinguishment of other financial liabilities and borrowings	(163)	-	(163)	-	(163)	-
(Loss)/ Profit before interest and taxation	(11,046)	1,381	(9,665)	2,084	(7,581)	14,419
Interest income	1,936	176	2,112	(975)	1,137	1,137
Finance costs - Intercompany	-	-	-	1,659	1,659	1,659
Finance charges	(31,847)	(1,564)	(33,411)	4,120	(29,291)	(25,892)
(Loss)/Profit before taxation	(40,957)	(7)	(40,964)	6,888	(34,076)	(8,677)
Current tax	(796)	(97)	(893)	386	(507)	(507)
Deferred tax	1,798	104	1,902	(506)	1,396	-
(Loss)/Profit after taxation	(39,955)	-	(39,955)	6,768	(33,187)	(9,184)
Total comprehensive loss	(39,955)	-	(39,955)	6,768	(33,187)	(9,184)
VAT credits						1,499
Distributable loss						(7,685)

 

Performance for the twelve months ended 30 June 2025

For the twelve month period ended 30 June 2025, the Group recorded a distributable loss of US$12.4 million, compared to distributable earnings of US$1.2 million for the prior corresponding period. The primary variance drivers for this variance are net operating income, which, while the Grit proportionate income statement reflected a 1.1% year-on-year increase in NOI, the was offset by a US$9.6 million impact stemming from changes in non-controlling interests when calculating the Group economic interest and distributable earnings. This effect primarily resulted from the June 2024 disposal of the Bora Africa Group to GREA, reducing the Group’s effective ownership from 100% to 53.24%. Additional pressures on NOI arose from rental reversions to secure key long term lease renewals and lease concessions granted, particularly within the retail sector. Finance costs increased by 6.4% year-on-year,driven by sustained elevated global interest rates, notably affecting debt linked to SOFR benchmarks. Partially offsetting these impacts, administration expenses declined by 25.4% year-on-year, reflecting the effectiveness of ongoing cost saving initiatives implemented across the Group.

IFRS Income statement to distribution reconciliation	IFRS for the twelve months ended 30 June 2025	Extracted from Associates	GRIT Proportionate Income statement	Split NCI	GRIT Economic Interest	Distributable earnings for the twelve months ended 30 June 2025
	US$'000	US$'000	US$’000	US$'000	US$'000	US$'000
Gross rental income	72,245	7,073	79,318	(22,849)	56,469	56,193
Property operating expenses	(13,700)	(1,428)	(15,128)	3,333	(11,795)	(11,758)
Net operating profit	58,545	5,645	64,190	(19,516)	44,674	44,435
Other income	129	-	129	(257)	(128)	(92)
Administration expenses	(17,705)	(359)	(18,064)	3,711	(14,353)	(13,894)
Net impairment charge on financial assets	(840)	-	(840)	173	(667)	21
Profit / (Loss) from operations	40,129	5,286	45,415	(15,889)	29,526	30,470
Fair value adjustment on investment properties	(42,954)	(819)	(43,773)	13,133	(30,640)	-
Fair value adjustment on other financial asset	20	-	20	(13)	7	-
Fair value adjustment on derivative financial instruments	(4,393)	-	(4,393)	48	(4,345)	-
Share-based payment	-	-	-	-	-	-
Share of profits from joint ventures	1,105	(1,105)	-	-	-	-
Foreign currency (losses) / gains	1,791	(4)	1,787	(3,169)	(1,382)	-
Loss on extinguishment of other financial liabilities and borrowings	(163)	-	(163)	-	(163)	-
Other transaction costs	(3,723)	(1)	(3,724)	991	(2,733)
(Loss)/Profit before interest and taxation	(8,188)	3,357	(4,831)	(4,899)	(9,730)	30,470
Interest income	4,907	176	5,083	(1,776)	3,307	3,309
Finance costs - Intercompany	-	-	-	3,137	3,137	3,137
Finance charges	(64,679)	(3,385)	(68,064)	9,763	(58,301)	(51,610)
(Loss)/Profit before taxation	(67,960)	148	(67,812)	6,225	(61,587)	(14,694)
Current tax	(1,296)	(254)	(1,550)	518	(1,032)	(1,032)
Deferred tax	3,834	106	3,490	(704)	2,786	-
(Loss)/Profit after taxation	(65,422)	-	(65,872)	6,039	(59,833)	(15,726)
Total comprehensive (loss)/income	(65,422)	-	(65,872)	6,039	(59,833)	(15,726)
VAT credits						3,316
Distributable loss						(12,410)

Financial and Portfolio summary

Operational performance for the six and twelve months ended 30 June 2025

The Grit Proportionate Income Statement is further broken down to provide a sectoral analysis of Property Portfolio Revenue² and Net Operating Income (NOI)². Property Portfolio Revenue decreased by 6.4% for the six-month period ended 30 June 2025, while on a year-to-date basis, it increased by 2.2% compared to the prior year. Similarly, the Group’s Proportionate NOI declined by 7.1% over the six-month period but recorded a 1.1% increase over the 12-month period ended 30 June 2025.

Sector	Revenue Six months ended 30 June 2025 Reported2	Revenue Six months ended 30 June 2024 Reported2	Year-on-year change in Revenue reported	NOI Six months ended 30 June 2025  Reported2	NOI Six months ended 30 June 2024 Reported2	Year-on-year change in NOI Reported	Rental Collection1 30 June 2025
	US$'000	US$'000	%	US$’000	US$’000	%	%
Retail	9,796	10,469	(6.4%)	6,636	7,223	(8.1%)	95.1%
Hospitality	3,018	3,183	(5.2%)	3,003	3,183	(5.7%)	94.1%
Office	10,938	10,721	2.0%	9,093	9,216	(1.3%)	89.2%
Light industrial	1,631	2,994	(45.5%)	1,489	2,871	(48.1%)	113.0%
Corp Accommodation	8,434	8,541	(1.3%)	7,047	7,003	0.6%	113.7%
Medical	1,324	1,218	8.7%	1,322	1,211	9.2%	67.9%
Data Centre	1,317	1,313	0.3%	1,322	1,313	0.7%	83.3%
Corporate	268	808	(66.8%)	(802)	(690)	(16.2%)	-
TOTAL	36,726	39,247	(6.4%)	29,110	31,330	(7.1%)	97.4%
Subsidiaries	33,259	33,833	(1.7%)	26,389	26,697	(1.2%)	-
Joint Ventures	3,467	5,414	(36.0%)	2,721	4,633	(41.3%)	-
TOTAL	36,726	39,247	(6.4%)	29,110	31,330	(7.1%)	97.4%

 

Sector	Revenue Twelve months ended 30 June 2025 Reported2	Revenue Twelve months ended 30 June 2024 Reported2	Year-on-year change in Revenue reported	NOI Twelve months ended 30 June 2025  Reported2	NOI Twelve months ended 30 June 2024 Reported2	Year-on-year change in NOI Reported	Rental Collection1 30 June 2025
	US$'000	US$'000	%	US$’000	US$’000	%	%
Retail	20,409	20,914	(2.4%)	13,448	13,994	(3.9%)	96.2%
Hospitality	6,129	6,160	(0.5%)	6,106	6,160	(0.9%)	98.8%
Office	22,040	20,117	9.6%	18,214	17,355	4.9%	88.6%
Light industrial	4,551	6,043	(24.7%)	4,194	5,789	(27.6%)	76.3%
Corp Accommodation	20,487	18,647	9.9%	17,429	15,615	11.6%	104.0%
Medical	2,567	1,966	30.6%	2,547	1,956	30.2%	76.0%
Data Centre	3,058	2,099	45.7%	3,050	2,099	45.3%	102.2%
Corporate	77	1,649	(95.3%)	(798)	542	(247.2%)	-
TOTAL	79,318	77,595	2.2%	64,190	63,510	1.1%	94.7%
Subsidiaries	72,245	63,977	12.9%	58,545	51,611	13.4%	-
Associates	7,073	13,618	(48.1%)	5,645	11,899	(52.6%)	-
TOTAL	79,318	77,595	2.2%	64,190	63,510	1.1%	94.7%

Notes

1 Rental Collections represents the amount of cash received as a percentage of contractual income. Contractual income is stated before the effects of any rental deferment and concessions provided to tenants.

2 The Revenue and NOI figures presented in the table above reflect the Group’s consolidated results from its subsidiaries, along with its proportionate share of revenue and NOI from joint ventures, which are otherwise presented within ‘share of profit from joint ventures’ in the condensed consolidated interim financial statements.”

Retail sector: Leasing activity in the retail sector remains strong, with new leases signed at both Anfa Place Mall and the Zambian malls. This has led to a reduction in overall vacancies from 14.2% in June 2024 to 12.8% in June 2025, despite ongoing challenges in the retail environment.

However, revenue and Net Operating Income (NOI) for the six- and twelve-month periods ended 30 June 2025 have declined compared to 2024. This is primarily due to rental concessions that were conservatively accrued in the prior year but ultimately did not materialise and were reversed in 2024, resulting in an elevated comparative base. As these concessions reversal were not repeated in 2025, they contributed to the year-on-year decline. Additionally, NOI was further affected by rising operating costs, reflecting broader market pressures.

Hospitality sector: Performance remained broadly in line with expectations, underpinned by strong occupancy levels at both Tamassa Resort and Club Med Cap Skirring Resort. The net decrease in revenue and Net Operating Income (NOI) for the six-month period was primarily due to development rental adjustments made during the period, which also contributed to a lower result over the twelve-month period. On a like-for-like basis, EBITDA rental from Tamassa was higher in 2024 compared to 2025, further contributing to the year-on-year decline.

Office sector: 5-year renewals were secured for Vodacom Mocambique SA and ATC Ghana Serviceco Limited, in Mozambique and Ghana, respectively. Recently completed assets such as The Precinct (Mauritius) and Eneo at Tatu Central (Kenya) also benefited from increased tenant demand, with both assets now reporting  occupancy rates aboves 92%.

Light Industrial sector: Despite ongoing macroeconomic headwinds, the lease with Imperial Managed Solutions East Africa Limited was successfully renewed for a further five-year term, albeit at prevailing market rental levels. In Kenya, the challenging economic environment impacted the operations of Orbit Products Africa Limited, resulting in a reduced space requirement and a renegotiation of rental terms at lower rates. Although the surrendered space has since been fully re-let, it was done so at lower market rentals.

In Mozambique, renewed optimism and positive developments in the LNG sector have supported market confidence, with Africa Global Logistics Moçambique S.A. now committing to a new five-year lease.

Corporate accommodation sector: Despite global uncertainties and US policy changes, demand for corporate accommodation units remain healthy with TotalEnergies EP Mozambique Area1 Limitada renewing leases on 32 units in Acacia Estate (Mozambique) for a period of 5 years, as well lease renewals secured at Elevation Residences (Ethiopia).

Healthcare and Data Centre sector: Properties within the Healthcare and Data Centre sectors have continued to perform well. The increase in revenue and Net Operating Income (NOI) compared to the prior periods was driven by the full-year consolidation of Africa Data Centres and Curepipe Artemis Hospital, contractual rental escalations on the data centre asset, and the appreciation of the Euro against the US Dollar, which positively impacted the Euro-denominated lease at Curepipe Artemis Hospital.

 

Cost control

During the twelve-month period ended 30 June 2025, administrative expenses reported under IFRS declined by 1.4% year-on-year, despite the full-year consolidation of costs from the Group’s project development arm (APDM), totalling US$4.0 million. This compares to seven months of APDM costs amounting to US$2.1 million in the prior year, following its consolidation effective 30 November 2023. Given the limited development activity undertaken during the period, APDM-related costs were absorbed under administrative expenses rather than capitalised as development costs. Excluding these, underlying administrative expenses decreased by 13.9% year-on-year—reflecting improved operational efficiency.

For the six-month period ended 30 June 2025, administrative expenses under IFRS fell by 9.7% year-on-year. Adjusting for APDM-related costs, the decline was even more pronounced at 21.6%, highlighting the tangible impact of the Group’s targeted savings initiatives.

Administrative expenses as a percentage of total income-producing assets reduced to 1.26% for the six months ended 30 June 2025, down from 1.63% for the prior comparable period. This is closely aligned with the Group’s short-term target of 1.25%, reinforcing momentum toward its medium-term goal of 1.0%.

Administrative expenses	Six months ended 30 June 2025	Six months ended 30 June 2024	Movement six months ended	Movement six months ended	Twelve months ended 30 June 2025	Twelve months ended 30 June 2024	Movement twelve months ended	Movement twelve months ended
	US$’000	US$’000	US$’000	%	US$'000	US$'000	US$'000	%
Total administrative expenses reported under IFRS	8,175	9,056	(881)	(9.7%)	17,705	17,951	(246)	(1.4%)
Less: Administrative expenses related to APDM not capitalised against development projects	(1,967)	(1,140)	(827)	72.5%	(4,038)	(2,070)	(1,968)	95.1%
Total ongoing administrative expenses – Excluding APDM costs	6,208	7,916	(1,708)	(21.6%)	13,667	15,881	(2,214)	(13.9%)
Administrative expenses reported under IFRS as % of total income producing assets	1.66%	1.86%	(0.20%)	(10.75%)	1.80%	1.85%	(0.05%)	(2.70%)
Ongoing administrative expense –Excluding APDM costs as a % of total income producing assets	1.26%	1.63%	(0.37%)	(22.70%)	1.38%	1.64%	(0.26%)	(15.85%)

Material finance cost increases

For the twelve months ended 30 June 2025, finance charges increased by 20.8% year-on-year. This increase primarily reflects the full twelve-month impact of finance costs associated with the GREA acquisition. The comparative period reflected only seven months of GREA related finance charges, following its consolidation on 30 November 2023. Despite higher borrowings, the impact was partially mitigated by marginal reductions in global interest rates and the strategic use of interest rate derivatives, which collectively reduced the Group’s the weighted average cost of debt to 9.41% as of 30 June 2025, from 10.00% a year earlier.

During the six-month period ended 30 June 2025, finance charges increased by 3.3% versus the comparable period, primarily due to increased borrowings.

The net finance charge disclosed below includes an amortisation of loan issuance costs and the impact of interest rate derivatives utilised.

Net finance costs	Six months ended 30 June 2025	Six months ended 30 June 2024	Movement six months ended	Movement six months ended	Twelve months ended 30 June 2025	Twelve months ended 30 June 2024	Movement twelve months ended	Movement twelve months ended
	US$’000	US$’000	US$’000	%	US$'000	US$'000	US$'000	%
Finance costs as per statement of profit or loss	31,847	30,825	1,022	3.3%	64,679	53,536	11,143	20.8%
Less: Interest income as per statement of profit or loss	(1,936)	(3,767)	1,831	(48.6%)	(4,907)	(4,882)	(25)	0.5%
Net finance costs - IFRS	29,911	27,058	2,853	10.5%	59,772	48,654	11,118	22.9%

 

Interest rate risk exposure and management

The exposure to interest rate risk at 30 June 2025 is summarised below, and the table highlights the value of the Group’s interest-bearing borrowings that are exposed to the base rates indicated:

Lender		TOTAL	SOFR	EURIBOR	PLR1	FIXED
		US$'000	US$'000	US$'000	US$'000	US$'000
Standard Bank Group		318,368	267,580	50,788	-	-
NCBA Bank Kenya		30,424	30,424	-	-	-
Maubank Ltd		30,000	15,000	-	-	15,000
Investec Group		30,409	-	30,409	-	-
SBM Bank (Mauritius) Ltd		27,391	27,391	-	-	-
International Finance Corporation		16,100	16,100	-	-	-
Nedbank Group		15,620	15,620	-	-	-
ABSA Group		45,000	45,000	-	-	-
SBI (Mauritius) Ltd		9,500	9,500	-	-	-
Private Equity		6,633	-	-	-	6,633
Zemen Bank S.C		4,140	-	-	-	4,140
Housing Finance Corporation		3,884	-	-	-	3,884
First National Bank		540	-	-	540	-
AfrAsia Bank Ltd		3	-	-	3	-
Total Exposure- IFRS		538,012	426,615	81,197	543	29,657
Exposure %		100.0%	79.3%	15.1%	0.1%	5.5%

Notes

1	PLR – Local Banks’ Prime lending rate

Interest rate risk mitigation

The Group utilises interest rate derivative instruments as well as back-to-back arrangements with joint venture partners to partially mitigate against the risk of rising interest rates. Taking this into consideration along with the impact of fixed interest rate instruments the Group is 73.4% hedged on US$ loans but remains largely unhedged to interest movements on its EUR loans and local bank prime lending rates in Mauritius and South Africa. The hedged position of the Group as at 30 June 2025 is detailed below:

Lender		TOTAL	SOFR	EURIBOR	PLR1	FIXED
		US$'000	US$'000	US$'000	US$'000	US$'000
Total exposure - IFRS		538,012	426,615	81,197	543	29,657
Less: Derivative instruments in place		(285,332)	(285,332)	-	-	-
Less: Partner loans offsetting group exposure		(21,034)	(21,034)	-	-	-
Less: Fixed interest instruments not subject to interest rate volatility		(29,657)	-	-	-	(29,657)
Net exposure (after interest rate derivatives and other mitigating instruments) - IFRS		201,989	120,249	81,197	543	-
% Exposure hedged		62.5%	71.8%	0.0%	0.0%	100.0%
% Exposure unhedged		37.5%	28.2%	100.0%	100.0%	0.0%

 

Notes

1	PLR – Local Banks’ Prime lending rate

Interest rate sensitivity

Management monitor and manages the business relative to the weighted average cost of debt (“WACD”), which is the net finance costs adjusted for the effects of interest rate derivative instruments that are in place as a percentage of the interest-bearing borrowings due at the reporting date. A sensitivity of the Group’s expected WACD to further movements in the base rates are summarised below:

All debt	WACD	Movement vs current WACD	Impact on finance costs vs current WACD
	%	bps	US$’000
At 30 June 2025 (including hedges)	9.41%
+50bps	9.70%	29bps	1,656
+25bps	9.58%	17bps	961
-25bps	9.24%	(17bps)	(965)
-50bps	9.07%	(34bps)	(1,915)
-100bps	8.75%	(65bps)	(3,724)

 

Portfolio performance

For the year to date period ended 30 June 2025, the Group’s income producing assets increased by US$14.6 million, representing a 1.8% growth compared to the position as at 30 June 2024. The increase is primarily attributable to the consolidation of DH3 (refer to note 10) which transitioned from a joint venture to a fully consolidated subsidiary. The increase was partially offset by fair value adjustments recognised on investment properties (including those held by joint ventures) during the period, amounting to US$43.8 million.

Composition of income producing assets	30 Jun 2025	30 Jun 2024
	US$'m	US$'m
Investment properties	806.0	792.4
Investment properties included within ‘Investment in joint ventures’	51.5	80.7
Investment properties included under non-current assets classified as held for sale	75.5	49.0
	933.0	922.1
Deposits paid on investment properties	5.1	5.0
Other investments, property, plant & equipment, Intangibles & related party loans	50.7	44.1
Total income producing assets	988.8	971.2

Property valuations

Reported property values, based on Grit’s proportionate share of the total portfolio (including joint ventures), declined by 1.8% over the 12 months ended 30 June 2025. The reduction was primarily attributable to negative fair value adjustments of US$43.7 million, representing a 5.10% decrease. However, this was partially offset by positive foreign exchange movements amounting to US$14.9 million (+1.75%), mainly relating to properties valuation denominated in currencies that appreciated against the US dollar, notably AnfaPlace Mall, Club Med Cap Skirring Resort and Kafubu Mall. During the period, Artemis Curepipe Hospital was classified as held for sale, while Rosslyn Grove in Kenya was fully consolidated as a subsidiary.

Sector	Property Value 30 Jun 2024	Foreign exchange movement	Development and capital expenditures	Fair value movement	Other movement	Effect of step up of joint venture to subsidiary	Effect of reclassification to held for sale	Property Value 30 June 2025	Total Valuation Movement
	US$'000	US$'000	US$’000	US$’000	US$'000	US$'000	US$'000	US$'000	%
Retail	214,395	5,341	883	(10,189)	2,194	-	-	212,624	(0.8%)
Hospitality	31,406	7,631	2,344	(8,409)	(22)	-	-	32,950	4.9%
Office	271,011	-	2,928	(14,421)	651	-	-	260,169	(4.0%)
Light industrial	64,714	-	73	(10,506)	15	-	-	54,296	(16.1%)
Data Centres	28,500	-	33	964	503	-	-	30,000	5.3%
Healthcare	24,726	2,004	352	(646)	102	-	(26,538)	-	(100.0%)
Corporate Accommodation	221,021	-	165	(4,737)	(277)	29,550	-	245,722	11.2%
GREA under construction	17,262	-	365	4,172	-	-	-	21,799	26.3%
TOTAL	873,035	14,976	7,143	(43,772)	3,166	29,550	(26,538)	857,560	(1.8%)
Subsidiaries	792,351	12,476	7,143	(42,954)	4,440	59,100	(26,538)	806,018	1.7%
Joint Ventures	80,684	2,500	-	(818)	(1,274)	(29,550)	-	51,542	(36.1%)
TOTAL	873,035	14,976	7,143	(43,772)	3,166	29,550	(26,538)	857,560	(1.8%)

Interest-bearing borrowings movements

As at 30 June 2025, the Group’s interest-bearing borrowings totaled US$540.6 million, up from US$501.2 million at 30 June 2024. The increase of US$39.4 million primarily reflects the consolidation of DH3 on 30 June 2025, as further detailed in note 10.

Movement in reported interest-bearing borrowings for the period (subsidiaries)	As at 30 Jun 2025	As at 30 Jun 2024
	US$'000	US$'000
Balance at the beginning of the period	501,164	396,735
Proceeds of interest bearing-borrowings	75,515	79,075
Loan acquired through asset acquisition	36,018	10,770
Loan acquired through business combination	-	88,240
Reclassify to held for sale disposal group	(10,425)	(37,066)
Loan issue costs	(4,399)	(2,658)
Amortisation of loan issue costs	5,450	3,539
Foreign currency translation differences	1,719	(1,612)
Interest accrued	58,240	49,510
Interest paid during the year	(57,871)	(48,453)
Debt settled during the year	(64,771)	(36,916)
As at period end	540,640	501,164

 

The following debt-related transactions were concluded during the period under review:

• A total facility of US$30.0 million was secured from MauBank Ltd by Grit Services Limited and Grit Real Estate Income Group Limited.
• A facility of approximately US$0.56 million (ZAR 10 million) was obtained from First National Bank to finance the acquisition of Parc Nicol.
• Gateway Real Estate Africa secured a facility of US$9.5 million from SBI (Mauritius) Ltd.
• A partial repayment of US$7.5 million was made on the SBSA facility relating to Zambian Property Holdings Limited.
• A further partial repayment of US$18.0 million was made on the SBSA corporate facility held by Gateway Real Estate Africa.
• A partial repayment of approximately US$3.2 million was made on the Investec facility relating to AnfaPlace Mall.
• The facility previously held by DH One Real Estate PLC with Bank of Oromia in Ethiopia, amounting to approximately US$4.8 million, was successfully refinanced through Zemen Bank.

For more meaningful analysis, a further breakdown is provided below to better reflect debt related to non-consolidated joint ventures. As at 30 June 2025, the Group had a total of US$541.8 million in interest-bearing borrowings outstanding, comprised of US$538.0 million in subsidiaries (as reported in IFRS balance sheet) and US$3.8 million proportionately consolidated and held within its joint ventures.

	30 June 2025				30 June 2024
	Debt in Subsidiaries	Debt in joint ventures	Total		Debt in Subsidiaries	Debt in joint ventures	Total
	USD’000	USD’000	USD’000	%	USD’000	USD’000	USD’000	%
Standard Bank Group1	318,369	3,750	322,119	59.5%	334,358	7,500	341,858	65.1%
NCBA Bank Kenya	30,424	-	30,424	5.6%	30,587	-	30,587	5.8%
MauBank Ltd	30,000	-	30,000	5.5%	-	-	-	0.0%
Investec Group	30,409	-	30,409	5.6%	30,288	-	30,288	5.8%
SBM Bank (Mauritius) Ltd	27,390	-	27,390	5.0%	38,132	-	38,132	7.3%
International Finance Corporation	16,100	-	16,100	3.0%	16,100	-	16,100	3.1%
Nedbank Group	15,620	-	15,620	2.9%	15,400	-	15,400	2.9%
ABSA Group	45,000	-	45,000	8.3%	10,000	17,500	27,500	5.2%
SBI (Mauritius) Ltd	9,500	-	9,500	1.8%	5,408	-	5,408	1.0%
Private Equity	6,633	-	6,633	1.2%	5,046	-	5,046	1.0%
Cooperative Bank of Oromia	-	-	-	0.0%	10,491	-	10,491	2.0%
Zemen Bank S.C	4,140	-	4,140	0.8%
Housing Finance Corporation	3,884	-	3,884	0.7%	4,131	-	4,131	0.8%
First National Bank	540	-	540	0.1%	-	-	-	0.0%
Afrasia Bank Ltd	3	-	3	0.0%	15	-	15	0.0%
Total Bank Debt	538,012	3,750	541,762	100.0%	499,956	25,000	524,956	100.00%
Interest accrued	9,957				9,588
Unamortised loan issue costs	(7,329)				(8,380)
As at 30 June	540,640				501,164

Notes

1 The facility held by the Group with Stanbic Bank has been aggregated with those of the Standard Bank Group. As of 30 June 2025, the total interest-bearing borrowings with Stanbic Bank amounted to US$ 43.9 million (30 June 2024: US$ 46.4 million).

Net Asset Value and EPRA Net Realisable Value

Further reconciliations and details of EPRA earnings per share and other metrics are provided in notes 16a to 16b.

NET REINSTATEMENT VALUE (“NRV”) EVOLUTION	US$'000	US$ cps
June 2024 as reported – IFRS NRV	211,938	44.0
Financial instruments	26,742	5.5
Deferred tax in relation to fair value gain on investment properties	40,437	8.4
EPRA NRV at 30 Jun 2024	279,117	57.9
Portfolio valuations attributable to subsidiaries	(42,954)	(8.9)
Portfolio valuations attributable to joint ventures	(819)	(0.2)
Other fair value adjustments	(4,373)	(0.9)
Transactions with non-controlling interests	31,531	6.5
Other non-cash items (including non-controlling interest)	6,774	1.4
Cash losses	(15,727)	(3.3)
Movement in Foreign Currency Translation reserve	6,253	1.3
Movement in revaluation reserve	312	0.1
Coupon paid on preference dividends through retained earnings	(1,500)	(0.3)
Share issue expenses and transaction costs relating to equity instruments	(1,524)	(0.3)
Other equity movements	(2,628)	(0.5)
EPRA NRV before dilution	254,462	52.8
Issue of ordinary share capital	(8,388)	(2.0)
Movement in treasury share reserve	(9,809)	(2.4)
EPRA NRV at 30 Jun 2025	236,265	48.4
Deferred tax in relation to fair value gain on investment properties	(33,719)	(7.0)
Financial instruments	(29,231)	(5.9)
IFRS NRV at 30 Jun 2025	173,315	35.5

Dividend

No interim dividend has been declared for the six-month period ended 30 June 2025.

 

Bronwyn Knight Chief Executive Officer

 

12 August 2025

PRINCIPAL RISKS AND UNCERTAINTIES

Grit has a detailed risk management framework in place that is reviewed annually and duly approved by the Risk Committee and the Board. Through this risk management framework, the Company has developed and implemented appropriate frameworks and effective processes for the sound management of risk.

The principal risks and uncertainties facing the Group as at 30 June 2024 are set out on pages 80 to 85 of the 2024 Integrated Annual Report together with the respective mitigating actions and potential consequences to the Group’s performance in terms of achieving its objectives. These principal risks are not an exhaustive list of all risks facing the Group but are a snapshot of the Company’s main risk profile as at year end.

The Board has reviewed the principal risks and existing mitigating actions in the context of the current reporting period and believes there has been no material change to the risk categories and are satisfied that the existing mitigation actions remain appropriate to manage them.

STATEMENT OF DIRECTORS RESPONSIBILITIES IN RESPECT OF THE CONDENSED UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

The directors confirm that the condensed unaudited consolidated interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting, as issued by the International Accounting Standards Board (“IASB”). They further confirm that the interim financial report provides a fair review of the information required by the Disclosure Guidance and Transparency Rules (“DTR”) 4.2.7R and 4.2.8R, including:

•	A summary of significant events that occurred during the six-month period under review and their impact on the condensed unaudited consolidated interim financial statements, along with a description of the principal risks and uncertainties for the remaining six months of the financial year; and
•	Details of material related party transactions during the period, together with a fair review of any significant changes in related party transactions disclosed in the last Annual Report.

The directors are responsible for maintaining the integrity of the Grit website. Legislation in Guernsey governing the preparation and publication of financial statements may differ from legislation in other jurisdictions.

The directors of the Group are listed in the Annual Report for the year ended 30 June 2024. A list of current directors is maintained on the Grit website: www.grit.group.

 

On behalf of the Board

Bronwyn Knight

Chief Executive Officer

CONDENSED CONSOLIDATED INCOME STATEMENT

		Unaudited six months ended 30 June 2025	Unaudited six months ended 30 June 2024	Unaudited Twelve months ended 30 June 2025	Audited Twelve months ended 30 June 2024
	Notes	US$'000	US$'000	US$'000	US$'000
Gross property income	7	33,259	33,833	72,245	63,977
Property operating expenses		(6,870)	(7,136)	(13,700)	(12,366)
Net property income		26,389	26,697	58,545	51,611
Other income		24	305	129	345
Administrative expenses		(8,175)	(9,056)	(17,705)	(17,951)
Net impairment on financial assets		(454)	(4,552)	(840)	(3,217)
Profit from operations		17,784	13,394	40,129	30,788
Fair value adjustment on investment properties		(23,425)	(7,988)	(42,954)	(27,930)
Fair value adjustment on other financial liability		-	(2,001)	-	(2,236)
Fair value adjustment on other financial asset		-	(949)	20	(949)
Fair value adjustment on derivative financial instruments		(2,882)	1,566	(4,393)	(2,475)
Fair value loss on revaluation of previously held interest		-	-	-	(23,874)
Share-based payment expense		-	10	-	(90)
Share of (loss)/profit from associates and joint ventures	3	503	4,328	1,105	7,142
Loss arising from dilution in equity interest		-	-	-	(12,492)
Loss on derecognition of loans and other receivables		-	-	-	1
Foreign currency (losses)/gains		(2,863)	3,484	1,791	886
Loss on extinguishment of other financial liabilities and borrowings		(163)	(1,353)	(163)	(1,353)
Gain on disposal of property, plant and equipment		-	33	-	33
Other transaction costs		-	(9,419)	(3,723)	(8,871)
(Loss)/ Profit before interest and taxation		(11,046)	1,105	(8,188)	(41,420)
Interest income	8	1,936	3,767	4,907	4,882
Finance costs	9	(31,847)	(30,825)	(64,679)	(53,536)
Loss for the period before taxation		(40,957)	(25,953)	(67,960)	(90,074)
Taxation		1,002	(839)	2,538	1,132
Loss for the period after taxation		(39,955)	(26,792)	(65,422)	(88,942)
Loss attributable to:
Equity shareholders		(37,341)	(25,701)	(62,244)	(84,496)
Non-controlling interests		(2,614)	(1,091)	(3,178)	(4,446)
		(39,955)	(26,792)	(65,422)	(88,942)
Basic and diluted losses per ordinary share (cents)	13	(7.80)	(5.30)	(12.84)	(17.47)

 

 

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	Unaudited six months ended 30 June 2025	Unaudited six months ended 30 June 2024	Unaudited Twelve months ended 30 June 2025	Audited Twelve months ended 30 June 2024
	US$'000	US$'000	US$'000	US$'000
Loss for the period	(39,955)	(26,792)	(65,422)	(88,942)
Retirement benefit obligation	-	32	-	32
Exchange differences on translation of foreign operations	8,216	(635)	6,265	(2,694)
Share of other comprehensive income/(expense) of joint ventures	1,695	171	1,011	(2,166)
Revaluation gain through other comprehensive income	124	2,429	436	2,429
Other comprehensive income/(expense) that may be reclassified to profit or loss	10,035	1,997	7,712	(2,399)
Total comprehensive expense relating to the period	(29,920)	(24,795)	(57,710)	(91,341)
Total comprehensive expense attributable to:
Owners of the parent	(28,484)	(23,408)	(55,555)	(86,628)
Non-controlling interests	(1,436)	(1,387)	(2,155)	(4,713)
	(29,920)	(24,795)	(57,710)	(91,341)

 

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

		Unaudited as at 30 June 2025	Audited as at 30 Jun 2024
	Notes	US$'000	US$'000
Assets
Non-current assets
Investment properties	2	806,018	792,351
Deposits paid on investment properties	2	5,050	4,976
Property, plant and equipment		15,953	13,952
Intangible assets and goodwill		10,680	2,406
Investments in joint ventures	3	42,760	52,628
Related party loans receivable		208	316
Finance lease receivable		-	1,906
Other loans receivable		27,397	22,348
Derivative financial instruments		342	17
Trade and other receivables	4	2,100	2,503
Deferred tax		15,767	13,124
Total non-current assets		926,275	906,527
Current assets
Trade and other receivables	4	39,511	72,809
Current tax receivable		5,134	4,093
Related party loans receivable		8,669	1,534
Derivative financial instruments		19	45
Cash and cash equivalents		21,142	18,766
		74,475	97,247
Non-current assets classified as held for sale		82,065	50,624
Total current assets		156,540	147,871
Total assets		1,082,815	1,054,398
Equity and liabilities
Total equity attributable to ordinary shareholders
Ordinary share capital		544,082	535,694
Treasury shares reserve		(3,684)	(13,493)
Foreign currency translation reserve		1,271	(4,982)
Revaluation reserve		2,865	2,429
Accumulated losses		(371,219)	(307,710)
Equity attributable to owners of the Company		173,315	211,938
Perpetual preference notes	5	46,874	42,771
Non-controlling interests		124,187	102,605
Total equity		344,376	357,314
Liabilities
Non-current liabilities
Redeemable preference shares		-	-
Proportional shareholder loans		14,736	36,983
Interest-bearing borrowings	6	430,509	111,635
Lease liabilities		50	578
Derivative financial instruments		5,369	1,857
Related party loans payable		17,921	-
Deferred tax liability		46,395	47,749
Total non-current liabilities		514,980	198,802
Current liabilities
Interest-bearing borrowings	6	110,131	389,529
Lease liabilities		465	137
Trade and other payables		33,575	28,974
Current tax payable		1,395	1,361
Derivative financial instruments		397	1,073
Other financial liabilities		1,386	18,886
Bank overdrafts		1,898	1,988
		149,247	441,948
Liabilities directly associated with non-current assets classified as held for sale		74,212	56,334
Total current liabilities		223,459	498,282
Total liabilities		738,439	697,084
Total equity and liabilities		1,082,815	1,054,398

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

		Unaudited twelve months ended 30 June 2025	Audited twelve months ended 30 June 2024
	Notes	US$'000	US$'000
Cash generated from operations
Loss for the year before taxation		(67,960)	(90,074)
Adjusted for:
Depreciation and amortisation		1,174	1,172
Interest income	8	(4,907)	(4,882)
Share of profit from associates and joint ventures	3	(1,105)	(7,142)
Finance costs	9	64,679	53,536
IFRS 9 charges		840	3,217
Foreign currency gains		(1,791)	(886)
Straight-line rental income accrual		(3,380)	(2,685)
Amortisation of lease premium		681	459
Share based payment expense		-	90
Fair value adjustment on investment properties	2	42,954	27,930
Fair value adjustment on other financial liability		(20)	2,236
Fair value adjustment on other financial asset		-	949
Fair value adjustment on derivative financial instruments		4,393	2,475
Loss on derecognition of loans and other receivables		-	(1)
Loss on extinguishment of borrowings		163	1,353
Loss on disposal of property, plant and equipment		-	(33)
Loss arising from dilution in equity interest		-	12,492
Fair value loss on revaluation of previously held interest		-	23,874
Other transaction costs		3,723	8,871
		39,444	32,951
Changes to working capital		20,430	(10,526)
Cash generated from operations		59,874	22,425
Taxation paid		(3,036)	(2,044)
Net cash generated from operating activities		56,838	20,381
Cash (utilised in)/ generated from investing activities
Acquisition of, and additions to investment properties	2	(7,142)	(22,775)
Deposits received/ (paid) on investment properties	2	-	1,128
Additions to property, plant, and equipment		(80)	(443)
Additions to intangible assets		(25)	(50)
Acquisition of subsidiary, other than business combination, net of cash acquired		83	3,771
Acquisition of subsidiary through business combination, net of cash acquired		-	6,286
Related party loans payables paid		(721)	-
Proportional shareholder loans repayments from joint ventures	3	2,539	1,852
Proportional shareholder loans granted to joint ventures		(923)	-
Interest received		4,036	2,533
Proceeds from disposal of property, plant, and equipment			195
Related party loans receivable granted		-	712
Other loans receivable repaid by partners		-	1,000
Other loans receivable granted		-	(1,518)
Net cash utilised in investing activities		(2,233)	(7,309)
Proceeds from the issue of perpetual preference note		-	16,875
Prepetual preference note issue expenses		(68)	(3,599)
Perpetual note dividend paid		(1,500)	(1,232)
Ordinary dividends paid		-	(6,911)
Proceeds from interest bearing borrowings		75,515	79,075
Settlement of interest bearing borrowings		(64,771)	(36,916)
Finance costs paid		(57,871)	(48,453)
Proportional shareholder loans repaid		(1,105)	(2,158)
Proceeds received from partners		-	1,386
Buy back of own shares		-	(98)
Payment on derivative instrument		(1,359)	(397)
Payments of leases		(30)	(1,057)
Net cash utilised in financing activities		(51,189)	(3,485)
Net movement in cash and cash equivalents		3,416	9,587
Cash at the beginning of the year		16,778	7,332
Effect of foreign exchange rates		(950)	(141)
Total cash and cash equivalents at the end of the period		19,244	16,778
Total cash and cash equivalents comprise of:
Cash and cash equivalents		21,142	18,766
Less: Bank overdrafts		(1,898)	(1,988)
Total cash and cash equivalents at the end of the period		19,244	16,778

 

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	Ordinary share capital	Treasury shares reserve	Foreign currency translation reserve	Revaluation reserve	Accumulated losses	Preference share capital	Perpetual preference notes	Non-controlling interests	Total Equity
	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000
Balance as at 1 July 2023	535,694	(16,306)	(389)	-	(218,349)	31,596	26,827	(25,456)	333,617
Loss for the year	-	-	-	-	(84,496)	-	-	(4,446)	(88,942)
Other comprehensive (expense) / income for the year	-	-	(4,593)	2,429	32	-	-	(267)	(2,399)
Total comprehensive (expense) /income	-	-	(4,593)	2,429	(84,464)	-	-	(4,713)	(91,341)
Share based payments	-	-	-	-	90	-	-	-	90
Ordinary dividends declared	-	-	-	-	(7,227)	-	-	-	(7,227)
Treasury shares buy back	-	(98)	-	-	-	-	-	-	(98)
Settlement of shared based payment arrangement	-	2,911	-	-	(2,911)	-	-	-	-
Perpetual preference notes issued	-	-	-	-	-	-	16,875	-	16,875
Preferred dividend accrued on perpetual notes	-	-	-	-	(3,900)	-	2,668	-	(1,232)
Share issue expenses relating to issue of perpetual notes	-	-	-	-	-	-	(3,599)	-	(3,599)
Preferred dividend accrued on preference shares	-	-	-	-	(634)	634	-	-	-
Settlement of pre-existing relationship as part business combination	-	-	-	-	-	(32,230)	-	-	(32,230)
Non controlling interest on acquisition of subsidiaries through business combination	-	-	-	-	-	-	-	102,971	102,971
Non controlling interest on acquisition of subsidiary other than business combination	-	-	-	-	-	-	-	13,094	13,094
Transaction with non-controlling interests as part of business combination	-	-	-	-	(5,158)	-	-	(16,190)	(21,348)
Transaction with non-controlling interests without change in control	-	-	-	-	17,336	-	-	(17,336)	-
Transaction with non-controlling interests arising from capital raise of subsidiary	-	-	-	-	-	-	-	47,310	47,310
Transaction with non-controlling interests	-	-	-	-	(2,925)	-	-	2,925	-
Other movement	-	-	-	-	432	-	-	-	432
Balance as at 30 June 2024 (audited)	535,694	(13,493)	(4,982)	2,429	(307,710)	-	42,771	102,605	357,314
Balance as at 1 July 2024	535,694	(13,493)	(4,982)	2,429	(307,710)	-	42,771	102,605	357,314
Loss for the period	-	-	-		(62,244)	-	-	(3,178)	(65,422)
Other comprehensive income for the period	-	-	6,253	436	-	-	-	1,023	7,712
Total comprehensive income/(expense) for the period	-	-	6,253	436	(62,244)	-	-	(2,155)	(57,710)
Ordinary shares issued	8,388	-	-	-	-	-	-	-	8,388
Preferred dividend accrued on perpetual notes	-	-	-	-	(5,671)	-	4,171	-	(1,500)
Treasury shares movement	-	9,809	-	-	(7,071)	-	-	-	2,738
Share issue expenses relating to issue of perpetual notes	-	-	-	-	-	-	(68)	-	(68)
Transaction with non-controlling interests without change in control	-	-	-	-	(3,513)	-	-	3,513	-
Non-controlling interest on acquisition of subsidiary other than business combination	-	-	-	-	-	-	-	5,612	5,612
Transaction costs relating to issurance of equity instruments	-	-	-	-	-	-	-	(1,456)	(1,456)
Transaction with non-controlling interests without change in control	-	-	-	-	15,463	-	-	16,068	31,531
Other movement in equity	-	-	-	-	(473)	-	-	-	(473)
Balance as at 30 June 2025 (Unaudited)	544,082	(3,684)	1,271	2,865	(371,219)	-	46,874	124,187	344,376

 

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of this condensed consolidated interim financial statements are set out below.

1.     Basis of Preparation

The condensed unaudited consolidated interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting, as issued by the International Accounting Standards Board (“IASB”), together with interpretations issued by the IFRS Interpretations Committee, the pronouncements of the Financial Reporting Standards Council (“FRC”), and the listing rules of both the London Stock Exchange (“LSE”) and the Stock Exchange of Mauritius (“SEM”). The financial information presented in these condensed unaudited consolidated interim financial statements comprises the results of the holding company, Grit Real Estate Income Group, and its subsidiaries (the “Group”), together with the Group’s share of its investments in joint ventures. These condensed unaudited consolidated interim financial statements should be read in conjunction with the Group’s most recent audited consolidated statutory accounts for the year ended 30 June 2024.

Change in Accounting Year End

On 18 June 2025, the Company announced a change in its accounting reference date from 30 June to 31 December. As a result, the most recent audited consolidated statutory accounts covered the twelve-month period ended 30 June 2024, and the next audited consolidated statutory accounts will cover an eighteen-month transitional period ending 31 December 2025. Since the last audited statutory accounts, the Company has published consolidated interim results for the six-month period ended 31 December 2024. This announcement presents the Group’s second set of interim results, covering the six-month period from 1 January 2025 to 30 June 2025. Where relevant, financial information for the twelve months ended 30 June 2025 has been presented to provide appropriate year to date context, in accordance with the requirements of IAS 34.

Going Concern

The directors are required to consider an assessment of the Group's ability to continue as a going concern when producing the condensed consolidated interim financial statements. As of 30 June 2025, the Directors have assessed the Group’s financial position and concluded that the Group remains a going concern. The condensed unaudited consolidated financial statements for the period ended 30 June 2025 continue to be prepared on a going concern basis.

Functional and presentation currency

The condensed unaudited consolidated interim financial statements are prepared and are presented in United States Dollars (US$). Amounts are rounded to the nearest thousand, unless otherwise stated. Some of the underlying subsidiaries and joint ventures have functional currencies other than the US$. The functional currency of those entities reflects the primary economic environment in which they operate.

Presentation of alternative performance measures

The Group presents certain alternative performance measures on the face of the income statement. Revenue is shown on a disaggregated basis, split between gross rental income and the straight-line rental income accrual. Additionally, if applicable, the total fair value adjustment on investment properties is presented on a disaggregated basis to show the impact of contractual receipts from vendors separately from other fair value movements. These are non-IFRS measures and supplement the IFRS information presented. The directors believe that the presentation of this information provides useful insight to users of the financial statements and assists in reconciling the IFRS information to industry wide EPRA metrics.

1.2 Segmental reporting

In accordance with IFRS 8, operating segments are identified based on internal financial reports regularly reviewed by the Chief Operating Decision Makers (CODM) for the purpose of allocating resources and assessing performance. The CODM was determined to be the C-Suite members of the Group.The C-Suite members, which include the Chief Executive Officer, Chief Financial Officer, and senior executives from GREA, have been identified as the CODM because they bear the primary responsibility for making strategic decisions regarding the allocation of resources to the Group’s operating segments and for evaluating the performance of these segments. In line with the requirements of IFRS 8, the Group's operating segments continue to be defined based on the nature of the properties and the markets they serve. These segments include Hospitality, Retail, Office, Light Industrial, Corporate Accommodation, Healthcare, Data Centres, Development Management, and Corporate functions. Management believes that this segmentation provides the most relevant information for stakeholders, and, accordingly, no further aggregation of operating segments into reportable segments has been made. Although the Group's operations span several geographical locations across Africa, and this geographic footprint is disclosed to provide users with a more comprehensive understanding of the Group’s activities, management primarily evaluates the performance of its segments based on their economic characteristics rather than their geographic location.

1.3 Significant accounting judgements, estimates and assumptions

The preparation of these abridged consolidated half year financial statements in conformity with IFRS requires the use of accounting estimates which by definition will seldom equal the actual results. Management also needs to exercise judgement in applying the group's accounting policies. Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectation of future events that may have a monetary impact on the entity and that are believed to be reasonable under the circumstances.

Significant Judgements

In the process of applying the Group’s accounting policies, management has made the following judgements.

Historical significant judgements which continue to affect the condensed unaudited consolidated interim financial statements

Freedom Asset Management (FAM) as a subsidiary

The Group has considered Freedom Asset Management (FAM) to be its subsidiary for consolidation purposes due to the Group’s implied control of FAM, as the Group has ability to control the variability of returns of FAM and has the ability to affect returns through its power to direct the relevant activities of FAM. The Group does not own any interest in FAM however it has exposure to returns from its involvement in directing the activities of FAM.

Grit Executive Share Trust (GEST) as a subsidiary

The Group has considered Grit Executive Share Trust (GEST) to be its subsidiary for consolidation purposes due to the Group’s implied control of GEST, as the Group’s ability to appoint the majority of the trustees and to control the variability of returns of GEST. The Group does not own any interest in GEST but is exposed to the credit risk and losses of (GEST) as the Group shall bear any losses sustained by GEST and shall be entitled to receive and be paid any profits made in respect of the purchase, acquisition, sale or disposal of unawarded shares in the instance where shares revert back to GEST.

Grit Executive Share Trust II (GEST II) as a subsidiary

During the financial year 2023, Grit Executive Share Trust II has been incorporated to act as trust for the new long term incentive plan of the Group. The trust will hold Grit shares to service the new scheme when the shares will vest to the employees in the future. The corporate set-up of GEST II is like GEST and the Group  has considered the latter to be a subsidiary due to the implied control that the Group has over it.

African Development Managers Limited (“APDM”) as subsidiary

Africa Development Managers Ltd transitioned from being classified as a joint venture to a subsidiary on 30 November 2023. Despite holding a majority shareholding of 78.95%, the Group previously did not exercise control over APDM due to the power criteria not being met under the previous shareholders agreement. Decision-making authority for relevant activities rested with the investment committee of the Company, requiring seventy-five percent of its members' approval for decisions to pass. The Group could appoint four out of the seven members to the committee, while the Public Investment Corporation (PIC), holding 21.05% of APDM, could appoint two members. Additionally, a non executive member was appointed. Given the requirement for unanimous agreement among the Group and PIC to pass resolutions, control was not previously established. On 30 November 2023, the Group and PIC collectively signed an amended and restated APDM shareholder agreement, clarifying and amending the shareholder rights. Notably, the decision approval threshold at the investment committee was lowered to a simple majority. With the Group's ability to appoint four out of seven members and the revised decision threshold, control now resides with the Group. In assessing control, the Group also evaluated the reserved matters outlined in the amended agreement, where PIC's approval is still required for specific events. Upon a comprehensive review performed by the Group, it was concluded that none of these matters grant PIC the ability to block decisions related to APDM's relevant activities, but rather are included to safeguard the minority shareholder's interests. Due to the inherent judgment that needs to be applied in interpreting terms that are protective rather than substantive, the Group has considered the interpretation of the reserved matters to be an area of significant judgement.

Gateway Real Estate Africa Limited (“GREA”) as subsidiary.

The Group has recognized Gateway Real Estate Africa Ltd (GREA) as a subsidiary on 30th of November 2023. Similar to APDM, although the Group held a majority equity stake in GREA, it was previously treated as a joint venture due to the previous shareholders agreement where its board of directors largely directed its relevant activities. The Group could appoint three out of seven directors on the board, while PIC could appoint two directors, with the remaining being nonexecutive. Decisions required seventy-five percent of present members' votes, necessitating the support of PIC for Grit to make decisions.

On 30th of November 2023, the Group and PIC signed an amended and restated GREA shareholder agreement, clarifying and amending shareholder rights. Importantly, under the new agreement, the Group now has the ability to appoint four out of seven directors, while PIC retains the right to appoint two directors. The decision approval threshold at the board level has been lowered to a simple majority and it was therefore concluded that control of GREA has been established by the Group. The Group also evaluated specific events where PIC's approval is still required, reflected in the reserved matter section of the new agreement. Upon comprehensive review, it was concluded that these matters do not grant PIC the ability to block decisions related to GREA's relevant activities but are included to safeguard PIC's interests. Due to the inherent judgment that needs to be applied in interpreting terms that are protective rather than substantive, the Group has considered the interpretation of the reserved matter to be an area of significant judgement.

Significant Estimates

The principal areas where such estimations have been made are:

Fair value of investment properties

The fair value of investment properties and owner occupied property are determined using a combination of the discounted cash flows method and the income capitalisation valuation method using assumptions that are based on market conditions existing at the relevant reporting date. For further details of the valuation method, judgements and assumptions made, refer to note 2.

2. INVESTMENT PROPERTIES

	As at 30 June 2025	As at 30 June 2024
	US$'000	US$'000
Net carrying value of properties	806,018	792,351
Movement for the year excluding straight-line rental income accrual, lease incentive and right of use of land
Investment property at the beginning of the year	770,424	611,854
Acquisition through subsidiary other than a business combination	-	141,110
Transfer from associate on step up to subsidiary1	59,100	75,040
Reduction in property value on asset acquisition1	(1,410)	(938)
Other capital expenditure and construction	7,143	22,775
Transfer to disposal group held for sale2	(24,124)	(49,000)
Foreign currency translation differences	12,476	(2,487)
Revaluation of properties at end of year	(42,954)	(27,930)
As at period end	780,655	770,424
Reconciliation to consolidated statement of financial position and valuations
Carrying value of investment properties excluding right of use of land, lease incentive and straight-line income accrual	780,655	770,424
Right of use of land	6,614	6,681
Lease incentive	3,701	4,070
Straight-line rental income accrual	15,048	11,176
Total valuation of properties	806,018	792,351

1 The status of the investment in DH3 Kenya Limited, the beneficial owner of Rosslyn Grove in Kenya has changed from a joint venture to a subsidiary during the reporting period. Refer to note 10 for more information.

2 St Helene, the beneficial owner of Artemis Curepipe Clinic has been reclassified as held for sale during the reporting period. Refer to note 11 for more information.

Lease incentive asset included in investment property

In accordance with IFRS 16, rental income is recognised in the Group income statement on a straight-line basis over the lease term. This includes the effect of lease incentives given to tenants. The Group has granted lease incentives to tenants (in the form of rent-free periods). The result is a receivable balance included within investment property in the balance sheet as those are balances that must be considered when reconciling to valuation figures to prevent double counting of assets. This balance is subject to impairment testing under IFRS 9 using the simplified approach to expected credit loss of IFRS 9.

	As at 30 June 2025	As at 30 June 2024
	US$'000	US$'000
Lease incentive receivables before impairment	4,098	4,442
Impairment of lease incentive receivables	(397)	(372)
Net lease incentive included within investment property	3,701	4,070

 

Summary of valuations by reporting date	Most recent independent valuation date	Valuer (for the most recent valuation)	Sector	Country	As at 30 June 2025 US$'000	As at 30 June 2024 US$'000
Commodity House Phase 1	30-Jun-25	REC	Office	Mozambique	58,567	56,957
Commodity House Phase 2	30-Jun-25	REC	Office	Mozambique	22,162	20,717
Hollard Building	30-Jun-25	REC	Office	Mozambique	21,277	21,123
Vodacom Building	30-Jun-25	REC	Office	Mozambique	40,762	51,281
Zimpeto Square	30-Jun-25	REC	Retail	Mozambique	2,553	3,277
Bollore Warehouse	30-Jun-25	REC	Light industrial	Mozambique	9,815	10,144
Anfa Place Mall	30-Jun-25	Knight Frank	Retail	Morocco	67,800	67,506
VDE Housing Compound	30-Jun-25	REC	Corporate accommodation	Mozambique	40,772	44,021
Imperial Distribution Centre	30-Jun-25	Knight Frank	Light industrial	Kenya	16,140	18,620
Mara Viwandani	30-Jun-25	Knight Frank	Light industrial	Kenya	2,530	2,530
Buffalo Mall	30-Jun-25	Knight Frank	Retail	Kenya	9,560	9,950
Eneo Tatu City- CCI Phase 2	30-Jun-25	Knight Frank	Office	Kenya	28	-
Mall de Tete	30-Jun-25	REC	Retail	Mozambique	13,742	13,396
Acacia Estate	30-Jun-25	REC	Corporate accommodation	Mozambique	71,042	70,237
5th Avenue	30-Jun-25	Knight Frank	Office	Ghana	17,070	16,660
Capital Place	30-Jun-25	Knight Frank	Office	Ghana	18,640	20,040
Mukuba Mall	30-Jun-25	Knight Frank	Retail	Zambia	60,070	62,180
Orbit Complex	30-Jun-25	Knight Frank	Light industrial	Kenya	19,130	26,750
Copia Land	30-Jun-25	Knight Frank	Light industrial	Kenya	6,680	6,670
Club Med Cap Skirring Resort	30-Jun-25	Knight Frank	Hospitality	Senegal	32,950	31,406
Coromandel Hospital	30-Jun-25	Knight Frank	Healthcare	Mauritius	910	877
Artemis Curepipe Clinic	30-Jun-25	Knight Frank	Healthcare	Mauritius	-	24,726
The Precint- Freedom House	30-Jun-25	Knight Frank	Office	Mauritius	940	658
The Precint- Harmony House	30-Jun-25	Knight Frank	Office	Mauritius	2,091	2,085
The Precint- Unity House	30-Jun-25	Knight Frank	Office	Mauritius	17,345	18,058
Eneo Tatu City- CCI	30-Jun-25	Knight Frank	Office	Kenya	48,316	47,990
Metroplex Shopping Mall	30-Jun-25	Knight Frank	Retail	Uganda	18,030	20,020
Adumuah Place	30-Jun-25	Knight Frank	Office	Ghana	2,329	2,717
Africa Data Centers	30-Jun-25	Knight Frank	Data Centre	Nigeria	30,000	28,500
DH4 Bamako	30-Jun-25	Knight Frank	Corporate accommodation	Mali	20,857	16,385
DH1 Elevation	30-Jun-25	Knight Frank	Corporate accommodation	Ethiopia	75,180	76,870
DH3 Rosslyn Grove	30-Jun-25	Knight Frank	Corporate accommodation	Kenya	58,730	-
Total valuation of investment properties directly held by the Group- IFRS					806,018	792,351
Valuation of investment property classified as held for sale					75,538	49,000
Valuation of owner-occupied property classified as property, plant and equipment					14,084	12,500
Total valuation of property portfolio					895,640	853,851
Total valuation of investment properties directly held by the Group					806,018	792,351
Deposits paid on Imperial Distribution Centre Phase 2					1,500	1,426
Deposits paid on Capital Place Limited					3,550	3,550
Total deposits paid on investment properties					5,050	4,976
Total carrying value of property portfolio including deposits paid					811,068	797,327
Investment properties held within joint ventures - Group share
Kafubu Mall - Kafubu Mall Limited (50%)	30-Jun-25	Knight Frank	Retail	Zambia	11,863	9,875
CADS II Building - CADS Developers Limited (50%)	30-Jun-25	Knight Frank	Office	Ghana	10,675	12,725
Cosmopolitan Shopping Centre - Cosmopolitan Shopping Centre Limited (50%)	30-Jun-25	Knight Frank	Retail	Zambia	29,005	28,190
DH3- Rosslyn Grove (50%)	30-Jun-25	Knight Frank	Corporate accommodation	Kenya	-	29,850
Total of investment properties acquired through joint ventures					51,543	80,640
Total portfolio					862,611	877,967
Functional currency of total property portfolio
United States Dollars					747,468	741,924
Euros					32,950	56,132
Moroccan Dirham					67,800	67,506
Kenyan Shilling					2,530	2,530
Zambian Kwacha					11,863	9,875
Total portfolio					862,611	877,967

 

All valuations performed in currencies other than US$ have been translated into US$ at the effective closing exchange rate prevailing on the respective valuation dates. All valuations have been carried out in accordance with the RICS Valuation – Global Standards applicable at the relevant valuation date and are further compliant with both the International Valuation Standards and International Financial Reporting Standards. The discounted cash flow method has been applied in the valuation of all buildings, while all land parcels have been valued using the comparable method.

3. INVESTMENTS IN JOINT VENTURES

The following entities have been accounted for as associates and joint ventures in the current and comparative consolidated financial statements using the equity method:

			As at 30 June 2025	As at 30 June 2024
Name of joint venture	Country	% Held	US$'000	US$'000
Kafubu Mall Limited1	Zambia	50.00%	11,795	9,822
Cosmopolitan Shopping Centre Limited1	Zambia	50.00%	29,124	28,143
CADS Developers Limited1	Ghana	50.00%	1,841	4,114
DH3 Holdings Ltd2	Kenya	50.00%	-	10,549
Carrying value of joint ventures			42,760	52,628

1 The percentage of ownership interest during the period ending 30 June 2025 did not change.

2 Joint venture status changed to subsidiary during the period. Refer to note 10 for more information.

 

All investments in joint ventures are private entities and do not have quoted prices available.

The two tables below present a reconciliation of the carrying value of the investment in joint ventures at 30 June 2025 for the six-month period ended 30 June 2025, as well as for the twelve-month period ended 30 June 2025.

Reconciliation of carrying value in joint ventures for the six months to 30 June 2025

 

	Kafubu Mall Limited	CADS Developers Limited	Cosmopolitan Shopping Centre Limited	DH3 Holdings Ltd	Total
	US$'000	US$'000	US$'000	US$'000	US$'000
Balance at the beginning of the period- 01 January 2025	9,372	3,483	28,481	10,604	51,940
Profit / (losses) from associates and joint ventures	1,067	(1,894)	1,568	(238)	503
Revenue	529	287	1,425	1,226	3,467
Property operating expenses and construction costs	(96)	(185)	(271)	(194)	(746)
Admin expenses and recoveries	(11)	(3)	(29)	(202)	(245)
Unrealised foreign exchange gains/(losses)	-	(9)	(67)	(8)	(84)
Interest income	-	-	-	176	176
Finance charges	(5)	(449)	-	(936)	(1,390)
Fair value movement on investment property	682	(1,594)	574	(345)	(683)
Current tax	(32)	-	(64)	-	(96)
Deferred tax	-	59	-	45	104
Repayment of proportionate shareholders loan	(339)		(925)		(1,264)
Additional loan granted	-	252	-	2	254
Foreign currency translation differences	1,695	-	-	-	1,695
Associate step up to subsidiary	-	-	-	(10,368)	(10,368)
Carrying value of joint ventures- 30 June 2025	11,795	1,841	29,124	-	42,760

 

Reconciliation of carrying value in joint ventures for the twelve months to 30 June 2025

 

	Kafubu Mall Limited	CADS Developers Limited	Cosmopolitan Shopping Centre Limited	DH3 Holdings Ltd	Total
	US$'000	US$'000	US$'000	US$'000	US$'000
Balance at the beginning of the period- 01 July 2025	9,822	4,114	28,143	10,549	52,628
Profit / (losses) from associates and joint ventures	1,632	(2,802)	2,850	(575)	1,105
Revenue	1,025	573	2,750	2,725	7,073
Property operating expenses and construction costs	(191)	(267)	(525)	(445)	(1,428)
Admin expenses and recoveries	(14)	(6)	(32)	(475)	(527)
Unrealised foreign exchange gains/(losses)	-	(10)	14	(15)	(11)
Interest income	-	-	-	176	176
Finance charges	(5)	(1,078)	-	(2,127)	(3,210)
Fair value movement on investment property	903	(2,073)	812	(460)	(818)
Current tax	(86)	-	(169)	-	(255)
Deferred tax	-	59	-	46	105
Repayment of proportionate shareholders loan	(670)		(1,869)		(2,539)
Additional loan granted	-	529	-	394	923
Foreign currency translation differences	1,011	-	-	-	1,011
Associate step up to subsidiary	-	-	-	(10,368)	(10,368)
Carrying value of joint ventures- 30 June 2025	11,795	1,841	29,124	-	42,760

4. TRADE AND OTHER RECEIVABLES

	As at 30 June 2025	As at 30 June 2024
	US$'000	US$'000
Trade receivables	24,861	17,918
Total allowance for credit losses and provisions	(9,031)	(7,914)
IFRS 9 - Impairment on financial assets (ECL)	(2,851)	(2,801)
IFRS 9 - Impairment on financial assets (ECL) Management overlay on specific provisions	(6,180)	(5,113)
Trade receivables – net	15,830	10,004
Accrued Income	7,630	2,645
Loan interest receivable	22	44
Deposits paid	173	172
VAT recoverable	8,621	11,496
Purchase price adjustment account	946	965
Deferred expenses and prepayments	11,835	5,126
Listing receivables	228	48,751
IFRS 9 - Impairment on other financial assets (ECL)	(3,891)	(3,891)
Sundry debtors	217	-
Other receivables	25,781	65,308
As at period end	41,611	75,312
Classification of trade and other receivables:
Non-current assets	2,100	2,503
Current assets	39,511	72,809
As at period end	41,611	75,312

5. PERPETUAL PREFERENCE NOTES

	As at 30 June 2025	As at 30 June 2024
	US$'000	US$'000
Opening balance	42,771	26,827
Issue of perpetual preference note classified as equity	-	16,875
Preferred dividend accrued	5,671	3,900
Preferred dividend paid	(1,500)	(1,232)
Less: Incremental costs related to the perpetual preference note issuance	(68)	(3,599)
As at period end	46,874	42,771

 

The Group has two perpetual peference notes arrangements as at 30 June 2025. Included below are more details of each arrangement including the salient features of each note:

International Finance Corporation ("IFC") Perpetual Preference Notes

During the financial year 2024, the Group, through one of its indirect subsidiaries, Orbit Africa Limited ("OAL"), has issued perpetual preference notes to the International Finance Corporation ("IFC"). The proceeds received by the Group from the issue amounted to US$16.8 million. Below are the salient features of the notes:

- The notes attract cash coupon at a rate of 3% + Term SOFR per annum and a 3% redemption premium per annum. At its sole discretion, the Group has the contractual right to elect to capitalize the cash coupons.

- The notes do not have a fixed redemption date and are perpetual in tenor. However, if not redeemed on the redemption target date, the notes carry a material coupon step-up provision and are therefore expected to result in an economic maturity and redemption by the Group on or before that date.

- The Group has classified the notes in their entirety as equity in the statement of financial position because of the unconditional right of the Group to avoid delivering cash to the noteholder.

 

TRG Africa Mezzanine Partners GP Proprietary Ltd and Blue Peak Private Capital GP Perpetual Preference Notes

In the financial year 2022, the Group through its wholly owned subsidiary Grit Services Limited has issued perpetual preference note to two investors TRG Africa Mezzanine Partners GP Proprietary Ltd (“TRG Africa”) and Blue Peak Private Capital GP (“Blue Peak”). The total cash proceeds received from the two investors for the issuance of the perpetual note amounted to US$31.5million.

Below are salient features of the notes:

- The Note has a cash coupon of 9% per annum and a 4% per annum redemption premium. The Group at its sole discretion may elect to capitalise cash coupons.

- Although perpetual in tenor, the note carries a material coupon step-up provision after the fifth anniversary that is expected to result in an economic maturity and redemption by the Group on or before that date.

- The Note may be voluntarily redeemed by the Group at any time, although there would be call-protection costs associated with doing so before the third anniversary.

- The Note if redeemed in cash by the Group can offer the noteholders an additional return of not more than 3% per annum, linked to the performance of Grit ordinary shares over the duration of the Note.

- The noteholders have the option to convert the outstanding balance of the note into Grit equity shares. If such option is exercised by the noteholders, the number of shares to be issued shall be calculated based on a pre-defined formula as agreed between both parties in the note subscription agreement.

On recognition of the perpetual preference note, the Group has classified eighty five percent of the instrument that is US$26.8million as equity because for this portion of the instrument the Group at all times will have an unconditional right to avoid delivery of cash to the noteholders. The remaining fifteen percent of the instrument that is US$4.7million has been classified as debt and included as part of interest bearing borrowings. The debt portion arises because the Note contains terms that can give the noteholders the right to ask for repayment of fifteen percent of the outstanding amount of the note on the occurence of some future events that are not wholly within the control of the Group. The directors believe that the probability that those events will happen are remote but for classification purposes, because the Group does not have an unconditional right to avoid delivering cash to the noteholders on fifteen percent of the notes, this portion of the instrument has been classified as liability.

The incremental costs directly attributable to issuing the notes (classified as equity) have been recorded as a deduction in equity, in the same equity line where the equity portion of the instrument has been recorded, so that effectively the equity portion of the instrument is recorded net of transaction costs.

6. INTEREST-BEARING BORROWINGS

The following debt-related transactions were concluded during the period under review:

• A total facility of US$30.0 million was secured from MauBank Ltd by Grit Services Limited and Grit Real Estate Income Group Limited.
• A facility of approximately US$0.56 million (ZAR 10 million) was obtained from First National Bank to finance the acquisition of Parc Nicol.
• Gateway Real Estate Africa secured a facility of US$9.5 million from SBI (Mauritius) Ltd.
• A partial repayment of US$7.5 million was made on the SBSA facility relating to Zambian Property Holdings Limited.
• A further partial repayment of US$18.0 million was made on the SBSA corporate facility held by Gateway Real Estate Africa.
• A partial repayment of approximately US$3.2 million was made on the Investec facility relating to AnfaPlace Mall.
• The facility previously held by DH One Real Estate PLC with Bank of Oromia in Ethiopia, amounting to approximately US$4.8 million, was successfully refinanced through Zemen Bank.

 

	As at 30 June 2025	As at 30 Jun 2024
	US$'000	US$'000
Non-current liabilities	430,509	111,635
Current liabilities	110,131	389,529
As at period end	540,640	501,164
Currency of the interest-bearing borrowings (stated gross of unamortised loan issue costs)
United States Dollars	453,216	404,509
Euros	80,116	84,956
Ethiopian Birr	4,140	10,491
South African Rand	540	-
	538,012	499,956
Interest accrued	9,957	9,588
Unamortised loan issue costs	(7,329)	(8,380)
As at period end	540,640	501,164
Movement for the period
Balance at the beginning of the year	501,164	396,735
Proceeds of interest bearing-borrowings	75,515	79,075
Loan acquired through asset acquisition	36,018	10,770
Loan acquired through business combination	-	88,240
Reclassify to held for sale disposal group	(10,425)	(37,066)
Loan issue costs	(4,399)	(2,658)
Amortisation of loan issue costs	5,450	3,539
Foreign currency translation differences	1,719	(1,612)
Interest accrued	58,240	49,510
Interest paid during the year	(57,871)	(48,453)
Debt settled during the year	(64,771)	(36,916)
As at period end	540,640	501,164

Analysis of facilities and loans in issue

			As at 30 June 2025	As at 30 June 2024
Lender	Borrower	Initial facility	US$'000	US$'000
Financial institutions
Standard Bank South Africa	Commotor Limitada	US$140.0m	140,000	140,000
Standard Bank South Africa	Zambian Property Holdings Limited	US$70.4m	56,900	64,400
Standard Bank South Africa	Grit Services Limited	EUR33m	29,138	24,502
Standard Bank South Africa	Capital Place Limited	US$6.2m	6,200	6,200
Standard Bank South Africa	Casamance Holdings Limited	EUR6.5m	7,717	7,060
Standard Bank South Africa	Grit Accra Limited	US$6.4m	8,400	8,400
Standard Bank South Africa	Casamance Holdings Limited	EUR11m	3,561	3,257
Standard Bank South Africa	Casamance Holdings Limited	EUR11m	8,168	7,472
Standard Bank South Africa	Gateway Real Estate Africa Ltd	US$18m	9,700	23,000
Standard Bank South Africa	Grit Services Limited	EUR0.5m	629	576
Standard Bank South Africa	Grit Services Limited	EUR0.4m	494	452
Standard Bank South Africa	Grit Services Limited	US$2.5m	-	588
Standard Bank South Africa	Grit Services Limited	US$0.9m	1,081	-
Standard Bank South Africa	Grit Services Limited	US$1.5m	-	-
Standard Bank South Africa	Grit Services Limited	US$2.41m	2,445	-
Standard Bank South Africa	Grit Services Limited	US$2.02m	-	2,025
Total Standard Bank Group			274,433	287,932
State Bank of Mauritius	St Helene Clinic Co Ltd	EUR 11.64M	-	4,600
State Bank of Mauritius	St Helene Clinic Co Ltd	EUR1.06m	-	964
State Bank of Mauritius	St Helene Clinic Co Ltd	EUR339k (capitalised)	-	337
State Bank of Mauritius	St Helene Clinic Co Ltd	EUR48k (capitalised)	-	40
State Bank of Mauritius	GD (Mauritius) Hospitality Investments Ltd	US$10m	-	10,000
State Bank of Mauritius	GR1T House Limited	US$22.5m	21,310	22,190
State Bank of Mauritius	GD (Mauritius) Hospitality Investments Ltd	US$10m	6,081	-
Total State Bank of Mauritius			27,391	38,131
Investec South Africa	Freedom Property Fund SARL	EUR36m	30,409	30,288
Total Investec Group			30,409	30,288
ABSA Bank (Mauritius) Limited	Gateway Real Estate Africa Ltd	US$10.0m	10,000	10,000
ABSA Bank Kenya PLC	DH3 Kenya Limited	US$35.0m	35,000
Total ABSA Group			45,000	10,000
Maubank Mauritius	Grit Real Estate Income Group Limited	US$15.0m	15,000	-
Maubank Mauritius	Grit Services Limited	US$15.0m	15,000	-
Total Maubank Mauritius			30,000	-
Nedbank South Africa	Warehously Limited	US$8.6m	8,620	8,620
Nedbank South Africa	Grit Real Estate Income Group Limited	US$7m	7,000	6,780
Total Nedbank South Africa			15,620	15,400
NCBA Bank Kenya	Grit Services Limited	US$3.9m	4,111	3,984
NCBA Bank Kenya	Grit Services Limited	US$8.0m	8,255	8,000
NCBA Bank Kenya	Grit Services Limited	US$6.5m	6,707	6,500
NCBA Bank Kenya	Grit Services Limited	US$11.0m	11,351	11,000
NCBA Bank Kenya	Grit Services Limited	US$6.5m	-	514
NCBA Bank Kenya	Grit Services Limited	US$11.0m	-	589
Total NCBA Bank Kenya			30,424	30,587
Ethos Mezzanine Partners GP Proprietary Limited	Grit Services Limited	US$2.4m	2,648	2,475
Blue Peak Holdings S.A.R.L	Grit Services Limited	US$2.2m	2,295	2,250
Total Private Equity			4,943	4,725
International Finance Corporation	Stellar Warehousing and Logistics Limited	US$16.1m	16,100	16,100
Total International Finance Corporation			16,100	16,100
Housing Finance Corporation	Buffalo Mall Naivasha Limited	US$4.24m	3,884	4,131
Total Housing Finance Corporation			3,884	4,131
AfrAsia Bank Limited	Africa Property Development Managers Ltd	Term Loans	3	15
Total AfrAsia Bank Limited			3	15
SBI (Mauritius) Ltd	St Helene Clinic Co Ltd	EUR 11.64m	-	5,159
SBI (Mauritius) Ltd	St Helene Clinic Co Ltd	EUR0.25m	-	249
SBI (Mauritius) Ltd	Grit Real Estate Income Group Limited	US$9.5m	9,500	-
Total SBI (Mauritius) Ltd			9,500	5,408
Stanbic Bank Ghana Ltd	GD Appolonia Limited	US$1.5m	595	1,295
Stanbic Bank Uganda Limited	Gateway Metroplex Ltd	US$10.75m	6,965	8,337
Stanbic IBTC PLC Nigeria	DC One FZE	US$13.59m	10,696	11,155
Stanbic Bank Kenya	Gateway CCI Limited	US$13.59m	25,679	13,988
Stanbic Bank Ghana Ltd	Gateway CCI Limited	US$2.0m	-	2,397
Stanbic Bank Uganda Limited	Gateway CCI Limited	US$1.8m	-	1,947
Stanbic IBTC PLC Nigeria	Gateway CCI Limited	US$1.2m	-	1,319
Stanbic Bank Kenya	Gateway CCI Limited	US$0.86m	-	864
Stanbic Bank Kenya	Gateway CCI Limited	US$5.04m	-	5,125
Total Stanbic Bank			43,935	46,427
Bank of Oromia	DH One Real Estate PLC	Ethiopian Birr 620m	-	10,491
Total Bank of Oromia			-	10,491
High West Capital Partners	Grit Services Limited	US$3.5m	1,690	321
Total High West Capital Partners			1,690	321
FNB	Grit Parc Nicol	ZAR10m	540	-
Total FNB			540	-
Zemen Bank S.C	DH One Real Estate PLC	Ethiopian Birr571m	4,140	-
Total Zemen Bank S.C			4,140	-
Total loans in issue			538,012	499,956
plus: interest accrued			9,957	9,588
less: unamortised loan issue costs			(7,329)	(8,380)
As at period end			540,640	501,164

Fair value of borrowings is not materially different to their carrying value amounts since interest payable on those borrowings are either close to their current market rates or the borrowings are short-term in nature.

7. GROSS PROPERTY INCOME

	Unaudited Six months ended 30 June 2025	Unaudited Six months ended 30 June 2024	Unaudited Twelve months ended 30 June 2025	Audited Twelve months ended 30 June 2024
	US$'000	US$'000	US$'000	US$'000
Contractual rental income	28,690	27,358	57,754	51,755
Retail parking income	847	851	1,727	1,730
Straight-line rental income accrual	1,069	1,661	3,380	2,685
Other rental income	(1,619)	(329)	(559)	(473)
Gross rental income	28,987	29,541	62,302	55,697
Asset management fees	231	808	35	1,525
Recoverable property expenses	4,041	3,484	9,908	6,755
Total gross property income	33,259	33,833	72,245	63,977

8. INTEREST INCOME

	Unaudited Six months ended 30 June 2025	Unaudited Six months ended 30 June 2024	Unaudited Twelve months ended 30 June 2025	Audited Twelve months ended 30 June 2024
	US$’000	US$'000	US$'000	US$'000
Finance lease interest income	-	98	97	114
Interest on loans to partners	1,072	1,160	2,598	2,683
Interest on loans from related parties	262	2,318	691	1,833
Interest on tenant rental arrears	516	49	1,172	49
Interest on property deposits paid	-	117	74	178
Bank interest	18	-	62	-
Other interest income	68	25	213	25
Total interest income	1,936	3,767	4,907	4,882

9. FINANCE COSTS

	Unaudited Six months ended 30 June 2025	Unaudited Six months ended 30 June 2024	Unaudited Twelve months ended 30 June 2025	Audited Twelve months ended 30 June 2024
	US$'000	US$'000	US$'000	US$'000
Interest-bearing borrowings - financial institutions	28,098	28,038	57,724	48,312
Interest on unwinding of financial liability		553	-	553
Early settlement charges	128	1,197	516	1,198
Amortisation of loan issue costs	2,738	1,910	5,450	3,539
Preference share dividends	478	463	958	962
Interest on derivative instrument1	(665)	(1,676)	(2,047)	(2,449)
Interest on lease liabilities	70	112	90	256
Interest on loans to proportional shareholders	500	156	1,373	1,032
Interest on loans to related parties	436	-	496	-
Interest on bank overdraft	64	72	119	133

Total finance costs

31,847

30,825

64,679

53,536

 

 

1 The Group includes the net interest income from its derivative instruments within finance costs. Although hedge accounting is not applied, these instruments were contracted as an economic hedge to mitigate the impact of unfavorable movements in interest rates.

10. ACQUISITION OF SUBSIDIARY AND TRANSACTION WITH NON-CONTROLLING INTEREST

Completion of the Establishment of the Diplomatic Accommodation Platform

10.1 Consolidation of DH3 Kenya

In continuation of the disclosures in Notes30(b) and41 of the Group’s 2024 Annual Report, Grit Real Estate Income Group (“the Group”) announced in June2025 that all outstanding conditions and implementation steps had been fulfilled to combine the diplomatic housing businesses of its subsidiary, Diplomatic Holdings Africa Ltd (“DH Africa”), with those of Verdant Ventures LLC and Verdant Property Holdings Ltd (together, “Verdant”). Gateway Real Estate Africa (“GREA”), a subsidiary of the Group, together with Verdant, had previously co-developed the Elevation Diplomatic Residences in Addis Ababa, Ethiopia (“DH Ethiopia”) and the Rosslyn Grove Diplomatic Apartment and Townhouse Complex in Nairobi, Kenya (“DH Kenya”), with GREA and Verdant each holding a 50% equity interest in these entities. Following completion of the transaction, DH Africa now holds a 99.9% equity interest in both DH Ethiopia and DH Kenya and has secured exposure to DH Ghana, a 108-unit diplomatic development in Ghana, through a convertible note.

As at 30 June 2025, the properties owned by DH Africa comprise (i) Acacia Estate in Mozambique, (ii) Elevation Diplomatic Residences in Ethiopia, (iii) Rosslyn Grove Diplomatic Apartment and Townhouse Complex in Kenya, and (iv) a land plot in Mali earmarked for future consular accommodation.

As part of the transaction, Verdant subscribed for shares in DH Africa, which was previously wholly owned by GREA, and now holds a 38.70% equity interest therein. In consideration for its subscription, Verdant assigned receivables amounting to US$26.7 million, which were previously owed by DH Ethiopia and DH Kenya, to DH Africa and a US$4.7 million convertible note, convertible into equity in DH Ghana. Following completion of the transaction, Grit, through GREA and DH Africa, has obtained control over DH Kenya in accordance with IFRS 10, and DH Kenya has been consolidated into the Group’s financial statements. This consolidation did not arise through the exchange of consideration but rather through changes to the governance structure of the broader diplomatic housing platform, which is now managed at the DH Africa level under a revised shareholder agreement. In accordance with the terms of this shareholder agreement, Grit through GREA exercises control as defined by IFRS 10 over DH Africa and its subsidiaries.

 

DH Kenya was previously treated as an joint venture for the Group. The acquisition of DH3 did not constitute the acquisition of a business as the Group, having applied the optional concentration test concluded that the fair value of the gross asset was concentrated in a single identifiable asset being the investment property. The acquisition has resulted in the Group acquiring some incidental assets and liabilities. The previously held equity interest has not been re-measured but instead the Group has used a cost accumulation approach inaccordance with the section 1.5 of its accounting policy (disclosed in the annual financial statements section of the 2024 annual report) which resulted in no gain or loss being recognized upon stepping up from joint venture to subsidiary.

 

Details of the assets and liabilities acquired as part of the asset acquisition of DH Kenya are:

 

 

Assets Acquired	US$'000
Investment property	59,100
Property, plant and equipment	2
Trade and other receivables	1,808
Cash and cash equivalents	83
Total assets	60,993
Liabilities assumed
Interest-bearing borrowings	(35,450)
Related party loans payable	(5,397)
Trade and other payables	(2,900)
Intercompany loans	(29)
Total liabilities	(43,776)
Identifiable net assets acquired	17,217
Cost of Group of assets acquired and liabilities assumed
Previously equity accounted carrying amount of investment in joint venture	10,368
Non-controlling interest acquired1	5,439
Total consideration	15,807
Excess net assets acquired over consideration	1,410

 

1 The Group elected to measure the non-controlling interest in DH Kenya based on its proportionate share of the net identifiable assets acquired. At the acquisition date, the non-controlling interest amounted to 50%. This percentage was applied to the net assets of DH Kenya before the settlement of any pre-existing relationships. The assets and liabilities presented in the table above reflect the balances after the elimination of these pre-existing relationships. In particular, a balance of US$6.3 million, representing a payable by DH Kenya to GREA, was excluded from the liabilities assumed.

 

As the acquisition was determined to be an asset acquisition, the Group applied the cost accumulation approach and adjusted the net assets acquired, specifically the investment property, so that the group of assets and liabilities assumed are recorded at the total consideration transferred. This resulted in a corresponding and equal fair value adjustment to the investment property, recognised as a gain, to reflect the corrected valuation of the property immediately following the acquisition.

 

10.2 Transaction with non-controlling interest

As previously disclosed, the transaction resulted in Verdant acquiring a 38.2% equity interest in DH Africa. As consideration for the shares subscribed in DH Africa, Verdant re-assigned receivables amounting to US$26.7 million to DH Africa. In the Group’s consolidated financial statements, US$21.7 million of this amount was classified as a liability under the financial statement line item “Proportional shareholder loans”, with the remaining US$5.0 million recorded under “Related party loan payable” as reflected in the table above. Verdant also granted DH Africa a convertible note with a principal amount of US$4.7 million, which is convertible into equity shares in DH Accra. Following the change in shareholding in DH Africa, the Group continues to consolidate all assets held within DH Africa. However, this change in shareholding has resulted in a change in the Group’s effective interest in the underlying assets held by DH Africa. This change has been accounted for as a transaction with non-controlling interests, in accordance with IFRS 10, without a change in control. The table below summarises the impact of this transaction on the equity attributable to the shareholders of the Group.

 

	US$’000
Carrying amount of non-controlling interests disposed	16,068
Consideration received from non-controlling interests 1	31,531
Increase in equity attributable to equity shareholders	15,463

1 The consideration received represents the liabilities previously owed to Verdant, which have been effectively extinguished from a Group perspective as part of the transaction, amounting to US$26.7 million, together with the convertible loan receivable of US$4.7 million. The convertible loan receivable has been disclosed as part of “other loans receivable” on the face of the statement of financial position.

10.3 Acquisition of asset and development management contract

As part of the overall transaction, Grit has issued 24.7 million new ordinary shares at an issue price of US$ 33.9 cents per share to acquire Verdant’s contractual rights to asset management and development management fees in respect of the diplomatic housing assets that transferred to DH Africa. Under the previous arrangement, Verdant was contractually entitled to receive these fees over the life of the diplomatic assets. Following this transaction, these rights have been ceded to Grit which in turn will be ceded to its subsidiary DHA Real Estate Management Ltd, enabling the Group to internalise these functions through its existing development and asset management platforms.

In accordance with the requirements of IAS 38 – Intangible Assets, Grit has recognised an intangible asset in respect of these contractual rights, reflecting the Group’s control over the rights and its ability to generate future economic benefits through either the receipt of development and asset management fees, or through the avoidance of external costs that would have otherwise been payable to Verdant. As the future economic benefits arise from contractual rights, the asset meets the contractual-legal criterion for identifiability under IAS 38.

The intangible asset has been recognised at a cost of US$8.3 million, representing the fair value of the consideration exchanged. The useful life of the asset has been determined to be 12.5 years, aligned with the adjusted average lease terms of the underlying assets held within DH Africa. The intangible asset will be amortised on a straight-line basis over this period through the income statement. The carrying amount will be subject to impairment testing should any indicators of impairment arise in accordance with IAS 36.

11. Non-current assets classified as held for sale

In October 2024, the Group entered into a Share Purchase Agreement (“SPA”) for the disposal of its equity interest in St Helene Clinic Co Ltd (“St Helene”), the beneficial owner of Artemis Curepipe Hospital in Mauritius. The classification of this investment as held for sale was reassessed as at 30 June 2025 and remains appropriate.

 

Furthermore, on 30 June 2024, the Group classified Mara Delta (Mauritius) Property Limited (“Mara Delta”), the beneficial owner of Tamassa Resort in Mauritius, as a disposal group held for sale. This classification was similarly reassessed as at 30 June 2025 and remains appropriate.

 

The table below sets out the major classes of assets and liabilities of St Helene and Mara Delta that have been classified as held for sale as at 30 June 2025:

Assets of disposal group classified as held for sale as at 30 June 2025

	Mara Delta (Mauritius) Property Limited	St Helene Clinic Co Ltd	Total
	US$'000	US$'000	US$'000
Investment property	49,000	26,538	75,538
Trade and other receivables	737	874	1,611
Current tax refundable	295	173	468
Deferred tax asset - non current	1,516	19	1,535
Cash and cash equivalents	62	883	945
Finance lease receivable	-	1,968	1,968
	51,610	30,455	82,065

 

 

Liabilities of disposal group classified as held for sale as at 30 June 2025

 

	Mara Delta (Mauritius) Property Limited	St Helene Clinic Co Ltd	Total
	US$'000	US$'000	US$'000
Interest-bearing borrowings	40,123	11,301	51,424
Trade and other payables	4,218	1,264	5,482
Redeemable preference shares	13,036	-	13,036
Deferred tax liabilities - non current	3,287	144	3,431
Current tax payable	-	30	30
Proportional shareholder loans	-	809	809
	60,664	13,548	74,212

 

12. Segmental reporting

Consolidated segmental analysis

The Group reports on a segmental basis in terms of geographical location and sector. Geographical location is split between Senegal, Morocco, Mozambique, Zambia, Kenya, Ghana and Mauritius, as relevant to each reporting period. Following the integration of Gateway Real Estate Africa within the Group the Geographical segment has been extended to now include Ethiopia, Mali, Uganda and Nigeria. The Group sectors are split into Hospitality, Retail, Office, Light industrial, Corporate Accommodation, Healthcare, Data Centre, Coporate, Development management and other investments.

Geographical location 30 June 2025	Senegal	Morocco	Mozam bique				Zambia		Kenya		Ghana		Maurit ius		Nigeria	Uganda	Mali		Ethio pia	Total
Reportable segment profit and loss
Gross property income	2,232	6,989	22,128				5,514		9,024		3,590		9,663		3,058	887	-		9,160	72,245
Property operating expenses	(12)	(3,744)	(3,934)				(577)		(1,443)		(690)		(1,772)		(6)	(618)	-		(904)	(13,700)
Net property income	2,220	3,245	18,194				4,937		7,581		2,900		7,891		3,052	269	-		8,256	58,545
Other income	-	-	-				-		-		-		129		-	-	-		-	129
Administrative expenses	(85)	(548)	(2,254)				(29)		(512)		(375)		(12,799)		(405)	(370)	(58)		(270)	(17,705)
Net impairment (charge) / credit on financial assets	-	(237)	(207)				-		40		(196)		(146)		-	(94)	-		-	(840)
Profit / (loss) from operations	2,135	2,460	15,733				4,908		7,109		2,329		(4,925)		2,647	(195)	(58)		7,986	40,129
Fair value adjustment on investment properties	(3,845)	(7,007)	(10,532)				(2,110)		(11,520)		(1,459)		(6,840)		963	(2,053)	4,172		(2,723)	(42,954)
Fair value adjustment on other financial asset	-	-	-				-		20		-		-		-	-	-		-	20
Fair value adjustment on derivatives financial instruments	-	-	-				-		(103)		-		(4,290)		-	-	-		-	(4,393)
Share of profits / (losses) from associates and joint ventures	-	-	-				4,482		(575)		(2,802)		-		-	-	-		-	1,105
Impairment of loans and other receivables	-	(78)	-				-		-		-		78		-	-	-		-	-
Foreign currency gains / (losses)	318	1,319	52				(78)		(289)		133		(3,306)		(1)	(12)	7		3,648	1,791
Other transaction costs	-	-	-				-		-		-		(3,723)		-	-	-		-	(3,723)
Profit / (loss) before interest and taxation	(1,392)	(3,306)	5,253				7,202		(5,358)		(1,799)		(23,169)		3,609	(2,260)	4,121		8,911	(8,188)
Interest income	-	-	-				-		-		-		4,907		-	-	-		-	4,907
Finance costs	(176)	(2,729)	(15,141)				-		(5,645)		(1,886)		(33,266)		(1,261)	(799)	-		(3,776)	(64,679)
Profit / (loss) for the year before taxation	(1,568)	(6,035)	(9,888)				7,202		(11,003)		(3,685)		(51,528)		2,348	(3,059)	4,121		5,135	(67,960)
Taxation	-	(347)	2,807				(376)		321		(129)		(36)		(136)	544	1		(111)	2,538
Profit / (loss) for the year after taxation	(1,568)	(6,382)	(7,081)				6,826		(10,682)		(3,814)		(51,564)		2,212	(2,515)	4,122		5,024	(65,422)
Reportable segment assets and liabilities
Non-current assets
Investment properties	32,950	67,800	280,692				60,070		102,384		38,039		21,286		30,000	18,030	20,857		133,910	806,018
Deposits paid on investment properties	-	-	-				-		-		-		5,050		-	-	-		-	5,050
Property, plant and equipment	-	21	92				-		10		4		14,569		-	47	-		1,210	15,953
Intangible assets	-	(10)	-				-		-		-		10,690		-	-	-		-	10,680
Other investments	-	-	-				-		-		-		-		-	-	-		-	-
Investment in associates and joint ventures	-	-	-				40,919		-		1,841		-		-	-	-		-	42,760
Related party loans receivable	-	-	-				-		-		-		208		-	-	-		-	208
Finance lease receivable	-	-	-				-		-		-		-		-	-	-		-	-
Other loans receivable	-	-	1,515				-		-		-		25,882		-	-	-		-	27,397
Derivative financial instruments	-	-	-				-		-		-		342		-	-	-		-	342
Trade and other receivables	-	(144)	-				-		2,244		-		-		-	-	-		-	2,100
Deferred tax	-	1,027	9,383				-		2,209		2,432		1,018		-	43	-		(345)	15,767
Total non-current assets	32,950	68,694	291,682				100,989		106,847		42,316		79,045		30,000	18,120	20,857		134,775	926,275
Current assets
Trade and other receivables	1,016	2,560	8,262				-		6,547		1,255		17,849		646	315	256		805	39,511
Current tax receivable	-	-	999				-		1,309		1,701		909		-	29	-		187	5,134
Related party loans receivable	-	-	-				-		-		-		8,669		-	-	-		-	8,669
Derivative financial instruments	-	-	-				-		-		-		19		-	-	-		-	19
Cash and cash equivalents	366	176	5,251				157		2,010		387		10,067		10	20	71		2,627	21,142
	1,382	2,736	14,512				157		9,866		3,343		37,513		656	364	327		3,619	74,475
Non-current assets classified as held for sale	-	-	-				-		-		-		82,065		-	-	-		-	82,065
Total assets	34,332	71,430	306,194				101,146		116,713		45,659		198,623		30,656	18,484	21,184		138,394	1,082,815
Liabilities
Total liabilities	3,716	47,939	193,630				5,155		99,482		24,178		334,360		11,164	7,430	44		11,341	738,439
Net assets	30,616	23,491	112,564				95,991		17,231		21,481		(135,737)		19,492	11,054	21,140		127,053	344,376

 

Type of property 30 June 2025	Hospitality			Retail		Office		Light industrial		Corporate Accom		Health care		Data Centre		Dev. Mngt		Corporate		Total
Reportable segment profit and loss
Gross property income	6,121			15,516		22,622		4,554		17,623		2,569		3,058		-		182		72,245
Property operating expenses	(24)			(5,949)		(3,560)		(354)		(2,613)		(20)		(8)		-		(1,172)		(13,700)
Net property income	6,097			9,567		19,062		4,200		15,010		2,549		3,050		-		(990)		58,545
Other income	-			(2)		127		-		(44)		-		-		2		46		129
Administrative expenses	(435)			(1,039)		(1,280)		(121)		(2,584)		(337)		(397)		(2,105)		(9,407)		(17,705)
Net impairment (charge) / credit on financial assets	-			(383)		(223)		26		(134)		-		(1)		-		(125)		(840)
Profit / (loss) from operations	5,662			8,143		17,686		4,105		12,248		2,212		2,652		(2,103)		(10,476)		40,129
Fair value adjustment on investment properties	(8,409)			(11,904)		(12,348)		(10,506)		(105)		(646)		964		-		-		(42,954)
Fair value adjustment on other investments	-			-		-		-		-		-		-		-		-		-
Fair value adjustment on other financial asset	-			-		-		20		-		-		-		-		-		20
Fair value adjustment on derivatives financial instruments	-			-		(103)		-		-		-		-		-		(4,290)		(4,393)
Share of profits / (losses) from associates and joint ventures	-			4,482		(2,802)				(575)		-		-		-		-		1,105
Foreign currency gains / (losses)	(394)			1,234		(106)		(13)		3,657		398		(1)		(7)		(2,977)		1,791
Loss on extinguishment of borrowings	-			-		-		-		-		-		-		-		(163)		(163)
Other transaction costs	-			-		-		-		-		-		-		(3,100)		(623)		(3,723)
Profit / (loss) before interest and taxation	(3,141)			1,955		2,327		(6,394)		15,225		1,964		3,615		(5,210)		(18,529)		(8,188)
Interest income	-			-		-		-		-		-		-		-		4,907		4,907
Finance costs	(3,972)			(4,060)		(21,572)		(2,875)		(3,403)		(807)		(1,264)		(115)		(26,611)		(64,679)
Profit / (loss) for the year before taxation	(7,113)			(2,105)		(19,245)		(9,269)		11,822		1,157		2,351		(5,325)		(40,233)		(67,960)
Taxation	(23)			(177)		2,087		275		524		(6)		(135)		-		(7)		2,538
Profit / (loss) for the year after taxation	(7,136)			(2,282)		(17,158)		(8,994)		12,346		1,151		2,216		(5,325)		(40,240)		(65,422)
Reportable segment assets and liabilities
Non-current assets
Investment properties	32,950			171,783		249,499		54,295		266,581		910		30,000		-		-		806,018
Deposits paid on investment properties	-			-		-		-		-		-		-		-		5,050		5,050
Property, plant and equipment	-			75		14		-		1,300		-		-		1,114		13,450		15,953
Intangible assets	-			27		-		-		-		-		-		2,212		8,441		10,680
Investment in associates and joint ventures	-			40,919		1,841		-		-		-		-		-		-		42,760
Related party loans receivable	-			-		-		-		-		-		-		-		208		208
Finance lease receivable	-			-		-		-		-		-		-		-		-		-
Other loans receivable	-			-		1,515		-		-		-		-		-		25,882		27,397
Derivative financial instruments	-			-		-		-		-		-		-		-		342		342
Trade and other receivables	-			(144)		-		2,244		-		-		-		-		-		2,100
Deferred tax	-			3,231		6,194		1,395		3,935		-		-		-		1,012		15,767
Total non-current assets	32,950			215,891		259,063		57,934		271,816		910		30,000		3,326		54,385		926,275
Current assets
Trade and other receivables	1,023			2,969		8,802		5,317		5,165		38		646		1,878		13,673		39,511
Current tax receivable	295			568		2,224		1,201		239		149		-		12		446		5,134
Related party loans receivable	-			-		-		-		-		-		-		-		8,669		8,669
Derivative financial instruments	-			-		-		-		-		-		-		-		19		19
Cash and cash equivalents	367			902		4,875		467		4,845		15		10		2,119		7,542		21,142
		1,685	4,439		15,901		6,985		10,249		202		656		4,009		30,349		74,475
Non-current assets classified as held for sale	51,610			-		-		-		1		30,454		-		-		-		82,065
Total assets	86,245			220,330		274,964		64,919		282,066		31,566		30,656		7,335		84,734		1,082,815
Liabilities
Total liabilities	64,391			70,053		232,731		30,868		79,192		13,773		11,164		2,106		234,161		738,439
Net assets	21,854			150,277		42,233		34,051		202,874		17,793		19,492		5,229		(149,427)		344,376

Major customers

Rental income stemming from the US Embassy represented approximately 19.3% of the Group’s total contractual rental income for the period, with Total Group 8.49%, Tamassa LUX 4.48%, CCI 4.14% and Vodacom Mozambique 4.04%, making up the top 5 tenants of the Group.

13. Basic and diluted LOSSES per ordinary share

	Attributable earnings		Weighted average number of shares		Cents per share
	Six months ended 30 June 2025	Six months ended 30 June 2024	Six months ended 30 June 2025	Six months ended 30 June 2024	Six months ended 30 June 2025	Six months ended 30 June 2024
	US$'000	US$'000	Shares '000	Shares '000	US Cents	US Cents
Earnings per share - Basic	(37,341)	(25,701)	478,793	485,171	(7.80)	(5.30)
Earnings per share - Diluted	(37,341)	(25,701)	478,793	485,171	(7.80)	(5.30)

 

	Attributable earnings		Weighted average number of shares		Cents per share
	Twelve months ended 30 June 2025	Twelve months ended 30 June 2024	Twelve months ended 30 June 2025	Twelve months ended 30 June 2024	Twelve months ended 30 June 2025	Twelve months ended 30 June 2024
	US$'000	US$'000	Shares '000	Shares '000	US Cents	US Cents
Earnings per share - Basic	(62,244)	(84,496)	484,764	483,657	(12.84)	(17.47)
Earnings per share - Diluted	(62,244)	(84,496)	484,764	483,657	(12.84)	(17.47)

 

14. sUBSEQUENT EVENTS

•	No material events have been identified between the balance sheet date and the date of this report that will have a material impact on the financial results presented.

15. CAPITAL COMMITMENTS

•	Club Med Senegal phase 2 development US$22.9 million for the period up to February 2027.
•	DH4 Bamako development – US$44.7 million up to July 2027.

16. EPRA financial metrics

16a. EPRA earnings

Basis of Preparation

The directors of GRIT Real Estate Income Group Limited ("GRIT") ("Directors") have chosen to disclose additional non-IFRS measures, these include EPRA earnings, adjusted net asset value, EPRA net asset value, adjusted profit before tax and funds from operations (collectively "Non-IFRS Financial Information").

The Directors have chosen to disclose:

•	EPRA earnings to assist in comparisons with similar businesses in the real estate sector. EPRA earnings is a definition of earnings as set out by the European Public Real Estate Association. EPRA earnings represents earnings after adjusting for fair value adjustments on investment properties, gain from bargain purchase on associates, fair value adjustments included under income from associates, ECL provisions, fair value adjustments on other investments, fair value adjustments on other financial assets, fair value adjustments on derivative financial instruments, and non-controlling interest included in basic earnings (collectively the "EPRA earnings adjustments") and deferred tax in respect of these EPRA earnings adjustments. The reconciliation between basic and diluted earnings and EPRA earnings is detailed in the table below;
•	EPRA net asset value to assist in comparisons with similar businesses in the real estate sector. EPRA net asset value is a definition of net asset value as set out by the European Public Real Estate Association. EPRA net asset value represents net asset value after adjusting for net impairment on financial assets (ECL), fair value of financial instruments, and deferred tax relating to revaluation of properties (collectively the "EPRA net asset value adjustments"). The reconciliation for EPRA net asset value is detailed in the table below;
•	Adjusted EPRA earnings to provide an alternative indication of GRIT and its subsidiaries' (the "Group") underlying business performance. Accordingly, it excludes the effect of non-cash items such as unrealised foreign exchange gains or losses, straight-line leasing adjustments, amortisation of right of use land, impairment of loans and deferred tax relating to the adjustments. The reconciliation for adjusted EPRA earnings is detailed in the table below; and
•	Total distributable earnings to assist in comparisons with similar businesses and to facilitate the Group's dividend policy which is derived from total distributable earnings. Accordingly, it excludes VAT credit utilised on rentals, Listing and set-up costs, depreciation, and amortisation, share based payments, antecedent dividends, operating costs relating to AnfaPlace Mall’s refurbishment costs, amortisation of lease premiums and profits withheld/released. The reconciliation for total distributable earnings is detailed in the table below.

In this note, Grit presents European Real Estate Association (EPRA) earnings and other metrics which is non-IFRS financial information.

EPRA Earnings

		Six months ended 30 June 2025	Six months ended 30 June 2025	Six months ended 30 June 2024	Six months ended 30 June 2024
			Per share		Per share
		US$'000	US cents per share	US$'000	US cents per share
EPRA earnings		(14,657)	(3.06)	(12,933)	(2.67)
Total company specific adjustments		3,756	0.78	1,843	0.38
Adjusted EPRA earnings		(10,901)	(2.28)	(11,090)	(2.29)
Total company specific distribution adjustments		3,216	0.67	6,870	1.42
Total distributable earnings available to equity providers		(7,685)	(1.61)	(4,220)	(0.87)

 

		Twelve months ended 30 June 2025	Twelve months ended 30 June 2025	Twelve months ended 30 June 2024	Twelve months ended 30 June 2024
			Per share		Per share
		US$'000	US cents per share	US$'000	US cents per share
EPRA earnings		(23,391)	(4.83)	(8,465)	(1.76)
Total company specific adjustments		1,976	0.41	221	0.04
Adjusted EPRA earnings		(21,415)	(4.42)	(8,244)	(1.72)
Total company specific distribution adjustments		9,004	1.86	9,429	1.97
Total distributable earnings available to equity providers		(12,411)	(2.56)	1,185	0.25

EPRA Asset Values

		At 30 June 2025	At 30 June 2025	At 30 June 2024	At 30 June 2024
			Per share		Per share
		US$'000	US cents per share	US$'000	US cents per share
EPRA NRV		236,265	48.40	279,006	57.85
EPRA NTA		221,227	45.32	271,862	56.37
EPRA NDV		173,315	35.50	211,938	43.94
		Six months ended 30 June 2025	Six months ended 30 June 2024	Twelve months ended 30 June 2025	Twelve months ended 30 June 2024
		Shares ‘000	Shares ‘000	Shares ‘000	Shares ‘000
Weighted-average shares in issue		495,093	495,093	495,093	495,093
Less: Weighted average treasury shares for the year		(16,639)	(9,922)	(11,006)	(15,479)
Add: Issue of new shares		339	-	678	-
Add: Weighted average shares vested shares in long-term incentive scheme		1,702	3,225	3,405	2,682
EPRA Shares		480,495	488,396	488,170	482,296
Less: Vested shares in consolidated entities		(1,702)	(3,225)	(3,405)	(2,682)
Distribution shares		478,793	485,171	484,765	479,614

Grit presents European Real Estate Association (EPRA) earnings and other metrics which is non-IFRS financial information.

	Six months ended 30 Jun 2025	Six months ended 30 Jun 2024	Twelve months ended 30 Jun 2025	Twelve months ended 30 Jun 2024
	US$'000	US$'000	US$'000	US$'000
EPRA Earnings Calculated as follows:
Basic Loss attributable to the owners of the parent	(39,954)	(26,764)	(65,420)	(82,678)
Add Back:
- Fair value adjustment on investment properties	23,425	7,988	42,954	27,930
- Fair value adjustments included under income from associates	684	(3,775)	819	2,067
- Change in value on other financial asset	-	2,950	(20)	3,700
- Change in value on derivative financial instruments	2,882	(1,566)	4,393	2,475
- Fair value loss on revaluation of previously held equity instruments	-	-	-	23,874
- Loss arising from dilution in equity instruments	-	-	-	12,492
- Changes in fair value of financial instruments and associated close outs	-	-	-	(1)
- Acquisition costs not capitalised	(660)	9,062	3,328	9,051
- Goodwill written off	-	(72)		285
- Deferred tax in relation to the above 6	1,141	(1,973)	(1,396)	(3,146)
- Non-controlling interest included in basic earnings 5	(2,175)	1,217	(8,049)	(4,514)
EPRA EARNINGS	(14,657)	(12,933)	(23,391)	(8,465)
EPRA EARNINGS PER SHARE (DILUTED) (cents per share)	(3.06)	(2.67)	(4.42)	(1.76)
Company specific adjustments
- Unrealised foreign exchange gains or losses (non-cash) 1	2,941	(2,739)	(1,787)	(2,943)
- Straight-line leasing and amortisation of lease premiums (non-cash rental) 2	(485)	410	(1,999)	(890)
- Profit or loss on disposal of property, plant and equipment	15	(18)	66	(17)
- Amortisation of right of use of land (non-cash) 3	34	35	70	69
- Impairment of loan and other receivables 4	479	4,863	865	5,209
- Non-controlling interest included above 5	732	(1,207)	4,699	(2,127)
- Deferred tax in relation to the above 6	40	499	62	920
Total Company Specific adjustments	3,756	1,843	1,976	221
ADJUSTED EPRA EARNINGS	(10,901)	(11,090)	(21,415)	(8,244)
ADJUSTED EPRA EARNINGS PER SHARE (DILUTED) (cents per share)	(2.28)	(2.29)	(4.42)	(1.72)

 

COMPANY SPECIFIC ADJUSTMENTS TO EPRA EARNINGS

1.	Unrealised foreign exchange gains or losses
	The foreign currency revaluation of assets and liabilities in subsidiaries gives rise to non-cash gains and losses that are non-cash in nature. These adjustments (similar to those adjustments that are recorded to the foreign currency translation reserve) are added back to provide a true reflection of the operating results of the Group.
2.	Straight-line leasing (non-cash rental)
	Straight-line leasing adjustment and amortised lease incentives under IFRS relate to non-cash rentals over the period of the lease. This inclusion of such rental does not provide a true reflection of the operational performance of the underlying property and are therefore removed from earnings.
3.	Amortisation of intangible asset (right of use of land)
	Where a value is attached to the right of use of land for leasehold properties, the amount is amortised over the period of the leasehold rights. This represents a non-cash item and is adjusted to earnings.
4	Impairment on loans and other receivables
	Provisions for expected credit loss are non-cash items related to potential future credit loss on non- property operational provisions and is therefore added back to provide a better reflection of underlying property performance. The add back excludes and specific provisions for against tenant accounts.
5	Non-Controlling interest
	Any non-controlling interest related to the company specific adjustments.
6.	Other deferred tax (non-cash)
	Any deferred tax directly related to the company specific adjustments.

 

16b. Company distribution calculation

	Six months ended 30 Jun 2025	Six months ended 30 Jun 2025	Twelve months ended 30 Jun 2025		Twelve months ended 30 Jun 2025
	US$'000	US$'000	US$'000		US$'000
Adjusted EPRA Earnings	(10,901)	(11,090)	(21,415)		(8,244)
Company specific distribution adjustments
- VAT Credits utilised on rentals 1	1,499	1,488	3,316		2,197
- Listing and set up costs under administrative expenses 2 -	396	-	396		5
- Depreciation and amortisation 3	181	452	553		1,203
- Share based expenses	-	(10)	-		90
- Dividends (not consolidated out)	-	-	-		(205)
- Right of use imputed leases	70	111	89		317
- Amortisation of capital funded debt structure fees 4	3,233	5,111	6,418		6,755
- Deferred tax in relation to the above	(3,085)	(239)	(2,605)		(1,651)
- Non-controlling interest included above	922	(43)	837		718
Total company specific distribution adjustments	3,217	6,870	9,004		9,429
TOTAL DISTRIBUTABLE EARNINGS (BEFORE PROFITS WITHELD)	(7,685)	(4,220)	(12,411)		1,185
DISTRIBUTABLE INCOME PER SHARE (DILUTED) (cents per share)	(1.61)	(0.87)	(2.56)		0.25
DIVIDEND PER SHARE (cents share)	-	-	-		-

COMPANY DISTRIBUTION NOTES IN TERMS OF THE DISTRIBUTION POLICY

1.	VAT credits utilised on rentals
	In certain African countries, there is no mechanism to obtain refunds for VAT paid on the purchase price of the property. VAT is recouped through the collection of rentals on a VAT inclusive basis. The cash generation through the utilisation of the VAT credit obtain on the acquisition of the underlying property is thus included in the operational results of the property.
2.	Listing and set up costs under administrative expenses
	Costs associated with the new listing of shares, setup of new companies and structures are capital in nature and added back for distribution purposes.
3.	Depreciation and amortisation
	Non-cash items added back to determine the distributable income.
4.	Amortisation of capital funded debt structure fees
	Amortisation of upfront debt structuring fees.

OTHER NOTES

The condensed consolidated interim financial statements for the six months period ended 30 June 2025 (“abridged unaudited consolidated financial statements”) have been prepared in accordance with the measurement and recognition requirements of International Financial Reporting Standards (“IFRS”), the FCA Listing Rules and the SEM Listing Rules. The accounting policies are consistent with those of the previous audited annual financial statements.

The Group is required to publish financial results for the six months ended 30 June 2025 in terms of SEM Listing Rule 15.44 and the FCA Listing Rules. The Directors are not aware of any matters or circumstances arising subsequent to the period ended 30 June 2025 that require any additional disclosure or adjustment to the condensed consolidated interim financial statements. These unaudited condensed consolidated interim financial statements were approved by the Board on 12 August 2025.

Copies of the unaudited condensed consolidated interim financial statements, and the statement of direct and indirect interests of each officer of the Company pursuant to rule 8(2)(m) of the Mauritian Securities (Disclosure Obligations of Reporting Issuers) Rules 2007, are available free of charge, upon request at the Company's registered address. Contact Person: Ali Joomun.

Forward-looking statements

This document may contain certain forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Actual outcomes and results may differ materially from any outcomes or results expressed or implied by such forward-looking statements.

Any forward-looking statements made by, or on behalf of, Grit speak only as of the date they are made, and no representation or warranty is given in relation to them, including as to their completeness or accuracy or the basis on which they were prepared. Grit does not undertake to update forward-looking statements to reflect any changes in its expectations with regard thereto or any changes in events, conditions, or circumstances on which any such statement is based.

Information contained in this document relating to Grit or its share price, or the yield on its shares, should not be relied upon as an indicator of future performance.

Any forward-looking statements and the assumptions underlying such statements are the responsibility of the Board of directors and have not been reviewed or reported on by the Company’s external auditors.