JSE-listed real estate investment trust Growthpoint Properties on Wednesday posted a distribution growth of 6.5% for the year ended June 30, surpassing its guidance. The group declared a final dividend of 100.8c a share for the year – a 6.9% rise on the 94.3c apiece declared in 2016 and in excess of the guidance of between 5% and 6%.
In rand terms, distributions increased by R528-million, or 10.4%, to R5.6-billion, supported by a solid performance from the South African portfolio, the V&A Waterfront, the Healthcare Fund and Growthpoint Properties Australia (GOZ), along with new income streams introduced this year. The results for the 2017 financial year included the maiden contribution of Globalworth, which was acquired in December 2016 for R2.7-billion, as well as the first inclusion of trading profit and development fee income.
“Growthpoint [also] maintained high occupancy levels, achieved good leasing results, and kept its costs well contained,” said Growthpoint CEO Norbert Sasse on Wednesday. He highlighted the “admirable” performance of Growthpoint’s South African portfolio, particularly considering the “fiercely” competitive and weak domestic market, contributing 73% to its total distributable income.
“Vacancies in the portfolio improved to 4.4% from 5.7% during the year, and its arrears remain low. It delivered revenue growth of 6.58%. The total letting success rate increased from 82.4% to 85.3%, and it reported an improved renewal success rate of 73.6%,” Growthpoint outlined in its 2017 financial results report. The company also pointed to the performance of GOZ, which had its “best year ever”, delivering 9.6% increase in distributable income to shareholders on the ASX and increasing its net tangible assets by 10.3%. “GOZ outperformed its benchmarks and became the best performing A-Reit over one year, three years and five years,” Sasse said.
