Growthpoint boosts income

Posted On Thursday, 19 February 2009 02:00 Published by eProp Commercial News
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Growthpoint has an excellent risk diversification both geographically and sectorally.

Norbert-Sasse

 

 

 

 

 

 

JSE-listed Growthpoint Properties, the largest South African listed property company, said yesterday it grew distribution income by 10,2% to 56,3c per linked unit for the six months to December compared to the prior interim period.

This was in line with analysts’ expectations, but the company said that a tougher trading environment lay ahead.

Norbert Sasse, CEO of Growthpoint, said there were signs that the property market was heading for more subdued times.

“While building costs have peaked and are coming off, occupancy costs including rates and electricity are on the rise and not all are recoverable from occupants.”

He said the expected decrease in short-term interest rates over the next 12 months would have a limited benefit to the property sector because banks were taking higher margins.

Leon Allison, property analyst at Macquarie First South, said Growthpoint’s outlook reflected the uncertain macro- environment and deteriorating property fundamentals.

Sasse said despite the poorer economic conditions he was still confident of achieving growth in distributions for the year to June 30 of 7% 10%, assuming no further change in market conditions or unforeseen major tenant failure.

Growthpoint had “excellent risk diversification both geographically and sectorally,” he said.

Last modified on Friday, 18 April 2014 11:20

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