Growthpoint Properties H1 distribution up 6.1%

Posted On Wednesday, 22 February 2012 02:00 Published by Commercial Property News
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Growthpoint posts a 6.1% rise in distribution per linked unit to 67.8c for the six months ended December 2011.

Growthpoint PropertiesGrowthpoint Properties (GRT) on Wednesday posted a 6.1% rise in distribution per linked unit to 67.8 cents for the six months ended December 2011.

Net property income was up 26.1% to R2.080 billion, largely due to the inclusion of revenue of R201 million from the V&A Waterfront and higher revenue from Growthpoint Properties Australia (R175 million) due to acquisitions made, as well as contractual rental escalations. Operating profit was up R2.003 billion, from R1.679 billion.

South Africa's largest property fund said the economic conditions during the period continued to improve, albeit at a slow pace, as evidenced by a decrease in vacancies in the industrial and office sectors.

Growthpoint's vacancy levels in SA - excluding V&A Waterfront- as a percentage of gross lettable dropped to 4%, from 5% as at June 2011.

"Earnings from the V&A Waterfront for the six months have been in line with our expectations at the time of concluding the transaction. The ongoing difficult economic conditions are impacting on the hotel and leisure industries and this will have an impact on turnover rentals earned from the V&A Waterfront, however this is not significant," the company said in a statement.

The ratio of property expenses to revenue has improved from 23.0% to 22.7%, while other operating expenses remained the same at 2.9%.

The company said it expected that growth in distributions for the full year would be in line with the growth rate achieved in the first half.

Source: I-Net Bridge

Publisher: I-Net Bridge
Source: I-Net Bridge

Last modified on Sunday, 09 June 2013 14:19

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