South Africa's Growthpoint Properties Ltd on Wednesday its said half-year distributable income rose by 1.3%, but warned that growth is expected to be muted in 2023 due to uncertainty in the global macroeconomic environment.
Growthpoint said its distributable income per share, the primary measure of underlying financial performance in the listed property sector, rose to 77.9 cents in the six months to Dec. 31 from 76.9 cents a year earlier.
The co-owner of the upmarket V&A Waterfront development, which is home to several corporate head offices, hotels, shops and restaurants, said revenue rose by 7.4%, aided by a rise in rental income in South Africa and acquisitions in Australia.
Growthpoint, with a portfolio of 541 properties across South Africa, Australia, the United Kingdom, Poland, and Romania, said vacancies increased in its home retail sector, but decreased in the office and industrial sectors.
While the office sector remains oversupplied and employers enforce a hybrid working model, there is renewed appetite for premium office buildings that offer amenities and backup power amid the country's energy crisis.
In retail, trading has improved to pre-Covid levels, "however, consumers are experiencing increased financial pressure due to higher inflation and interest rates," the company said.
Reuters