Growthpoint distribution growth 7.2% to 149c

Listed property company Growthpoint Properties (GRT) on Wednesday reported 7.2% distribution growth to 149c per share for the year ended June.

The company said this growth exceeded the guidance released to the market in the prior year-end financial results of about 6.1%.

The growth in the unit price from R23 at June 30 2012 to R26.39 as at June 30 2013 gave investors a capital growth of 14.7% for the year.

The distribution of 149c per share accounts for an income yield of 6.5%‚ providing a total return of 21.2% for the year.

“Apart from normal escalations in the South African property portfolio's revenue‚ the increase in distributions was further enhanced by the investment in Growthpoint Properties Australia‚ where a weaker rand against the Australian dollar was in Growthpoint's favour‚” Growthpoint said.

Distributions per unit from Growthpoint Properties Australia grew by 10.2% in rand terms on a like-for-like basis.

Growthpoint’s portfolio consists of 393 directly-owned properties in SA valued at R39.1bn‚ as well as a 65.8% interest in Growthpoint Properties Australia‚ which owns 44 properties in Australia valued at R15.1bn‚ and a 50% interest in the V&A Waterfront with Growthpoint's share of the properties valued at R5.6bn.

During the year‚ R1.5bn of capital was raised through the distribution reinvestment plan‚ while R2.5bn of capital was raised through new equity issues.

Growthpoint’s average vacancy level rose slightly in the year‚ from 3.3% at the end of 2012 to 3.6% at year-end 2013.

The company said should current economic conditions prevail‚ growth in distribution per share for the year ending June 2014 “is expected to be similar to that achieved this year”.

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