The interim results for property loan stock company, Growthpoint Properties Limited, managed by Investec Property Group, were announced today by Chairman David Kuper. Highlights include:

·        Increase in distribution per linked unit of 5.2% over the distribution for the previous six month period January to June 2002. A distribution of R108,8 million, equating to a distribution per linked unit of 32 cents was declared for the six-month period ended 31 December 2002.

·        Conclusion of the listed investment portfolio acquisition, making re-evaluation profit of 9,23%, which equates to R60,54m after capitalisation of transaction costs.

·        Net income before debenture interest and taxation for the period amounted to R170,2 million.

Norbert Sasse head of property fund management at Investec Property Group, explained that because the year-end reporting period had changed, the interim reporting period ending 31 December 2001 had not been disclosed as it was for 9 months and was therefore not comparable.

Further, he said, the company accounted for listed investments it acquired in October 2002 for the first time.  The earnings per linked unit and headline earnings per linked unit of 66.98 cents and 43.15 cents, respectively, have been calculated based on the weighted average number of linked units in issue. In other words, 254 116 303 and therefore could not be compared to the distribution per linked unit of 32,00 cents which has been calculated based on 340 054 700 linked units in issue.

Growthpoint continues to be the largest listed property loan stock company measured by a market capitalisation of R1.9 billion. During the period under review the company acquired an investment portfolio of 8 listed linked units in property loan stock (“PLS”) companies and 4 property unit trusts (“PUT”) from the Mine Pension Funds for a total purchase consideration of R650,0 million.

Sasse said the results incorporate the earnings of the existing property portfolio (61 properties) two months income from the Nestlè building disposed of at the end of August 2002 for a cash consideration of R53,0 million; three months income from the listed investment portfolio acquired and one months income from the Laser portfolio of 9 industrial warehouse and office buildings acquired with effect from November 2002.

The physical property portfolio produced R188,3 million revenue for the period. Total operating income amounted to R117,4 million. Sasse said the portfolio now comprises 67 commercial, retail and industrial properties and three hotels. Major assets by value include La Lucia Mall in Kwa-Zulu Natal, Constantia Office Park, River Square Shopping Centre, Alberton City Shopping Centre (31,25%) and Gillooly’s View Office Park in Gauteng and Belmont Office Towers in the Western Cape.

Vacancies were reduced to 72 121 square metres, or 9,43% of total gross lettable area (“GLA”) compared to the 80 806 square metres, or 11% of GLA reported in June 2002. This represents a 10,7% improvement in the vacancy percentage over the reported six-month period.

 “It is management’s objective to continuously reduce Growthpoint’s vacancies,” said Sasse.

The listed investment portfolio returned R19,2 million for the period 9 October 2002 to 31 December 2002 in the form of dividends and debenture interest.

 “With regard to the total investment portfolio, its yield enhancing nature will give us a mechanism to enable Growthpoint and its Board to pursue the long term strategy of selectively targeting better quality, lower yielding physical properties and property portfolios. This should secure the long-term sustainability and quality of income streams from the overall Growthpoint portfolio and asset base.”

Growthpoint linked unitholders are advised that the company is still involved in negotiations which, if successfully concluded, may have an effect on the market price at which the company’s linked units trade on the JSE Securities Exchange South Africa. Growthpoint linked unitholders are accordingly advised to exercise caution in dealing in their linked units until a further announcement is made.

ENDS

Prepared by:                Beachhead Media & Investor Relations (Jennifer Cohen)

                                    011 214 2401 / 082 468 6469 / This email address is being protected from spambots. You need JavaScript enabled to view it.

On behalf of:               Investec Property Group

Further info:                Norbert Sasse

                                    011 286 7306 / 083 632 1599 / This email address is being protected from spambots. You need JavaScript enabled to view it.