The listed property sector has bounced back from its low in the middle of last month, rising 7,5% in value

The latest round of results from listed property funds confirm that the sector has more than delivered on its earnings growth promises

Growthpoint Properties Limited has achieved a Moody’s Investor Services rating in excess of the South African Government sovereign ceiling for the notes issued during its most recent commercial mortgage backed securitization (CMBS) in November 2006

Strong property fundamentals, improved letting and cost containment helped boost Growthpoint Properties’ distributions 14,5% to 93,1c, a linked unit for the year to June

Growthpoint Properties Limited this week announced a distribution of 93,1 cents per linked unit (cplu) for its financial year ended 30 June 2007. The results show a 14.5% increase on the distribution of 81, 3 cplu achieved by the fund in its 2006 results

The Public Investment Corporation (PIC), which plans to invest about R70bn in property assets over the next five years, is increasingly going to be competing with listed property companies for scarce property stock

Listed Property in South Africa is finding its way on to the buying lists of leading international pension fund/asset managers now that the sector is starting to offer the size and liquidity required by offshore investors

Listed property companies have fixed the interest rates on portions of their debt to mitigate this risk

In a tactical transaction which has already proven beneficial to its linked unitholders, Growthpoint Properties Limited fixed interest rates for a total of R1,3 billion of floating rate debt the week prior to Reserve Bank Governor Tito Mboweni's announcement of a 0,5% interest rate increase

Investec Property Group is being showered with praise for moving its external management of Growthpoint into the listed property fund