Growthpoint sees little to no growth from SA portfolio
JOHANNESBURG - Property investment holding company Growthpoint said on Wednesday it had delivered growth in distributions per share for the six months to December 31 of 4.5 percent and declared an interim dividend of 105.8 cents per share for the six months ended 31 December 2018.
Growthpoint, the largest South African primary listed real estate investment trust (REIT) with a quality portfolio of 447 directly owned properties in South Africa valued at R77.2 billion, said this growth was in line with the guidance given to the market for the financial year to 2019.
It said with 62.3 percent of properties by book value exposed to South Africa’s macro-economic environment where property fundamentals were weak and worsening, little to no growth was expected from the SA portfolio.
"The V&A Waterfront, which benefits from local and international tourism, is positioned to deliver growth but is not immune to the erosion in the domestic economy and turnover rentals declined in HY19," it said.
Most of the financial year's growth would come from international investments, Growthpoint said, noting that property fundamentals in Australia remained strong and Growthpoint Properties Australia (GOZ) was expected to deliver on its guidance.
Additional offshore growth would come from its central and eastern Europe investments in Globalworth Real Estate Investments and Globalworth Poland Real Estate, which enhanced the diversity and defensiveness of the Growthpoint portfolio.
- African News Agency (ANA)