Growthpoint Properties Limited (GRT) announces a distribution of 39.1 cents per linked unit for its six-month interim period ended 31 December 2005, representing a growth in distribution of 10.1% from the prior comparable period.
 
"This distribution growth is ahead of expectations and market conditions indicate that Growthpoint can expect similar growth for the full
year," said Norbert Sasse, CEO, Growthpoint Properties Limited, South Africa's largest JSE-listed property holding and investment company.
 
The increase in the Growthpoint's linked unit price from 906 cents at 30 June 2005 to 1,100 cents at 31 December 2005 together with the 39.1 cents per linked unit distribution, equates to an annualised return of 51.5%. The linked unit price has since increased to over 1,300 cents taking Growthpoint's market capitalisation to over 9 billion.
 
The strong performance of Growthpoint's linked unit price together with the additional 43 million linked units issued pursuant to the acquisition of 48 properties valued at 1.08 billion rand acquired from Tresso Trading resulted in the company's market captitalisation increasing to just below 8 billion rand at the end of December 2005. Growthpoint's property assets grew to in excess of 10 billion rand during the period.
 
Growthpoint, after the close of its interim period, announced it has agreed to acquire a further portfolio of 24 properties from Tresso Trading
for approximately 1.6 billion rand at a forward yield of 9%, which will increase its property assets to over 11.5 billion rand and its market
capitalisation to over 10 billion rand, based on the current unit price.
 
Resulting from its robust performance, Growthpoint was included in the FTSE/JSE Africa Financial Top 15 Companies Index (FINI 15), effective from 13 February 2006.
 
Sasse said that Growthpoint's double digit distribution growth could be attributed to strong property performance, the reduction in the cost of the company's borrowings through securitisation and reduced vacancies across the property portfolio.
 
During the period Growthpoint secured its position as the most highly traded listed property stock offering superior liquidity. 2.5 billion rand
of Growthpoint linked units traded on the JSE Limited, representing an annualised 74.5% of linked units in issue.
 
Growthpoint successfully launched its uniquely structured 5 billion rand commercial mortgage backed securitisation (CMBS) programme in November 2005. The initial issue on the Bond Exchange of South Africa of 5-year floating-rate notes of 805 million rand was the largest commercial property securitisation issue placed in South Africa to date. The refinancing of the securitised portion of Growthpoint's debt consequently reduced the funding rate by over 1.15% per annum.
 
At 31 December 2005 Growthpoint's loan to value ratio amounted to 42.5% and 89% of interest bearing debt was fixed at a weighted average interest rate of 10.8% for an average period of 7.3 years.
 
In line with its decision to disinvest from listed property investment other than its strategic stake in Metboard Properties Limited the focused
industrial fund, Growthpoint sold a major portion of its listed property investments before the period, thus resulting in a decline in investment
income.

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