Growthpoint distribution up 5.8% to 121.2c

Posted On Wednesday, 25 August 2010 02:00 Published by eProp Commercial Property News
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Growthpoint Properties has reported that its distribution growth for the year ended June 2010 increased by 5.8% to 121.2c per linked unit.

Growthpoint PropertiesSouth African property investment holding group Growthpoint Properties reported on Wednesday that its distribution growth for the year ended June 2010 increased by 5.8% to 121.2 cents per linked unit.

Operating profit was up R3.1 million compared with R2.5 million a year ago.

Headline earnings per linked unit increased to 100.12 cents from 45.26 cents a year earlier.

Profit for the year under review came in at R106 million against a R69 million loss a year ago.

The group said apart from contractual rental escalations, the increase in gross revenue (23.2%) and property expenses (20.6%) was mainly due to the acquisition of the Australian property trust (GOZ) for R1.3 billion.

On a "like-for-like" basis, net property income increased by 7.4%.

The revaluation of properties resulted in an upward revaluation on South African properties of R662 million (2.2%) to R30.0 billion for investment property, including investment properties reclassified as held for sale.

On the Australian portfolio, an upward revaluation of R166 million (3.5%) was made, bringing the value to R4.9 billion.

As at 30 June 2010 Growthpoint's vacancy levels in South Africa, as a percentage of gross lettable area (GLA) were 2.7 (retail) compared with 3.2% a year ago.

Office recorded 9.0% versus 8.9% year ago.

Industrial came in at 6.7% compared with4.4% a year ago.

The total vacancy rate stands 6.4% compared with 5.4 a year ago.

The group said the industrial sector was worst affected by the poor economic conditions experienced over the last year.

Since the first quarter of 2010 conditions appear to have stabilised and started slowly improving.

It is expected that this will see a slow but steady improvement in occupancy levels in the office and industrial sectors in the next year.

There were no vacancies in the Australian portfolio.

Looking ahead, Growhtpoint said indications are that the economy is experiencing a moderate recovery.

Should this be maintained and interest rates remain at current levels, it is expected that distributions for the year to 30 June 2011 should grow at a higher rate than that for 2010, it said.

Last modified on Tuesday, 22 April 2014 16:41

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