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GRT
GRT
GRT - Growthpoint Properties Limited - Results for the Six Months Ended 31
December 2009
Growthpoint Properties Limited
(Incorporated in the Republic of South Africa)
(Registration number 1987/004988/06)
Share code: GRT
ISIN: ZAE000037669
("Growthpoint" or "the company")
RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2009
- 5,0% distribution growth to 59,1 cents per linked unit
- Acquisition of 76,2% share in Australian property trust
- R1,3 billion capital raised through a vendor placement
- Launch of R5 billion Domestic Medium Term Note Programme
- Innovative distribution reinvestment option raises R540 million
STATEMENT OF COMPREHENSIVE INCOME
Six months Six months 12 months
31 Dec 31 Dec 30 Jun
2009 2008 2009
Note Rm Rm Rm
Revenue excluding 1 939 1 558 3 211
straight-line
leaseincome adjustment
Straight-line lease 161 103 219
income adjustment
Revenue 2 100 1 661 3 430
Property expenses (455) (390) (759)
Net property income 1 645 1 271 2 671
Other operating (52) (30) (75)
expenses
Net property income 1 593 1 241 2 596
after other operating
expenses
Investment income - - 1
Operating profit 1 593 1 241 2 597
Fair value adjustments 1 (111) (50) (143)
Finance costs (589) (451) (921)
Non-cash charges 2 131 (61) (140)
Capital items 3 (13) (41) (35)
Finance income 81 35 162
Profit before 1 092 673 1 520
debenture interest
Debenture interest (914) (720) (1 612)
Profit/(loss) before 178 (47) (92)
taxation
Taxation 28 13 23
credit/(charge)
- Normal taxation - (1) (5)
- Deferred taxation 14 14 28
- Capital gains 14 - -
taxation
Profit/(loss) for the 206 (34) (69)
period
Profit/(loss)
attributable to:
Equity holders 160 (34) (69)
Non-controlling 46 - -
interest
206 (34) (69)
Other comprehensive
income:
Foreign currency 35 - -
translation gain
Total comprehensive 241 (34) (69)
income/(loss)
Equity holders 187 (34) (69)
Non-controlling 54 - -
interest
CALCULATION OF DISTRIBUTABLE EARNINGS
Six months Six months 12 months
31 Dec 31 Dec 30 Jun
2009 2008 2009
Note Rm Rm Rm
Net property income 1 593 1 241 2 596
after operating
expenses
Less: straight-line (161) (103) (219)
lease income
adjustment
Investment income - - 1
Finance costs (589) (451) (921)
Finance income 81 35 162
Adjustment for non- (9) - -
controlling interest
Taxation (excluding - (1) (5)
deferred tax)
Distributable earnings 915 721 1 614
Total distribution (915) (721) (1 614)
- Debenture interest (914) (720) (1 612)
- Ordinary dividend (1) (1) (2)
Linked units Linked units Linked units
Linked units in issue 1 547 521 1 280 926 1 409 018
at the end of the 924 195 815
period
Weighted number of 1 547 521 1 280 926 1 409 018
linked units in issue 924 195 815
cents cents cents
Distribution per 59,10 56,30 114,60
linked unit
Six months ended 31 59,10 56,30 56,30
December
Six months ended 30 - - 58,30
June
Basic earnings/(loss) 4 10,34 (2,65) (4,90)
per share
Headline 5 56,90 (62,98) 45,26
earnings/(loss) per
linked unit
Rm Rm Rm
Note 1:
Fair value adjustments (111) (50) (143)
Gross investment 657 495 189
property fair value
adjustment
Less: straight-line (161) (103) (219)
lease income
adjustment
Net investment 496 392 (30)
property fair value
adjustment
Fair value adjustment 30 17 -
on investment property
reclassified as
property held for sale
Listed property 1 1 1
investments
Borrowings and (50) (2 144) (1 442)
derivatives
Long-term loans 14 97 35
granted to BEE
consortia
Debentures (602) 1 587 1 293
Debentures are
adjusted to fair value
which represents the
net asset value
attributable to
Growthpoint`s
debenture holders,
excluding the
intangible assets.
The debentures` fair
value adjustment
consists of:
Fair value adjustments (492) 1 637 1 436
on other assets and
liabilities excluding
fair value adjustment
on debentures
Straight-line lease (161) (103) (219)
income adjustment
Non-controlling 30 - -
interest`s portion of
fair value adjustments
Capital gains taxation (14) - -
Non-cash financing 14 10 20
charge
Decrease in other long- 8 2 21
term employee benefits
Capital items 13 41 35
Debenture fair value (602) 1 587 1 293
adjustment
Note 2:
Non-cash charges 131 (61) (140)
Non-cash financing (14) (10) (20)
charge
Amortisation of (49) (49) (99)
intangible asset
Negative goodwill 202 - -
Decrease in other long- (8) (2) (21)
termemployee benefits
Note 3:
Capital items
In terms of IFRS 3, Business Combinations, R22 million transaction costs
relating to the acquisition of GOZ was expensed. Furthermore, R9 million
proceeds from an insurance claim was received. The above costs and proceeds are
disclosed as capital items and do not affect distribution earnings.
Note 4:
The directors are of the view that the disclosure of earnings per share, while
obligatory in terms of IAS 33, Earnings per Share, and the JSE Listings
Requirements, is not meaningful to investors as the shares are traded as part of
a linked unit and practically all the revenue earnings are distributed in the
form of debenture interest plus dividends in the ratio of 1 000 to 1. In
addition, headline earnings include profit on the sale of listed property
investments, fair value adjustments on listed property investments, fair value
adjustments on interest-bearing and zero-coupon borrowings and debentures, as
well as non-cash charges, which do not affect distributable earnings. The
calculation of distributable earnings as set out above is more meaningful to
investors and is in accordance with Growthpoint`s reporting policy.
Note 5:
In terms of Circular 3/2009, issued by SAICA, both the fair value adjustment on
investment property and debentures are added back in the calculation of headline
earnings per linked unit. The Circular does not make provision for the fair
value adjustment on other non-current financial liabilities to be added back.
Rm Rm Rm
Basic earnings/(loss)
is reconciled to
headline earnings as
follows:
Profit/(loss) after 206 (34) (69)
taxation
Negative goodwill (202) - -
Add back: net fair (455) (350) 26
value adjustment -
investment property
- Fair value (527) (409) 30
adjustment
- Applicable taxation 72 59 (4)
Less: Profit (16) - -
attributable to non-
controlling interest
Headline loss (467) (384) (43)
attributable to
shareholders
Less: net fair value 433 (1 143) (931)
adjustment -
debentures
- Fair value 602 (1 587) (1 293)
adjustment
- Applicable taxation (169) 444 362
Add back: debenture 914 720 1 612
interest paid
Headline 880 (807) 638
earnings/(loss)
attributable to linked
unitholders
STATEMENT OF FINANCIAL POSITION
31 Dec 31 Dec 30 Jun
2009 2008 2009
Note Rm Rm Rm
ASSETS
Non-current assets 36 439 31 451 30 991
Fair value of 32 912 28 177 27 582
investment property
for accounting
purposes
Straight-line lease 1 216 939 1 055
income adjustment
Fair value of long- 34 128 29 116 28 637
term property assets
Intangible assets 1 684 1 783 1 733
Other long-term 39 57 47
employee benefits
Equipment 4 2 2
Listed property - 10 10
investments
Long-term loans 430 449 396
granted to BEE
consortia
Derivative assets 154 34 166
Current assets 1 378 1 111 1 374
Investment property 493 76 574
reclassified as held
for sale
Residential units held 21 - 22
for sale
Trade and other 331 387 281
receivables
Cash and cash 533 648 497
equivalents
Total assets 37 817 32 562 32 365
EQUITY AND LIABILITIES
Shareholders` interest 1 706 1 466 1 436
Ordinary share capital 77 64 70
Foreign currency 27 - -
translation reserve
Non-distributable 1 602 1 402 1 366
reserve
Non-current 6 21 005 16 696 18 641
liabilities -
debentures
Linked unitholders` 22 711 18 162 20 077
interest
Non-controlling 506 - -
interest
Total unitholders` 23 217 18 162 20 077
interest
Other non-current 10 817 10 541 9 174
liabilities
Other non-current 10 472 10 168 8 815
financial liabilities
Deferred tax liability 345 373 359
Current liabilities 3 783 3 859 3 114
Trade and other 969 568 615
payables
Rights issue - 1 000 -
underwriting amount
received in advance
Current portion of non- 1 881 1 566 1 673
current liabilities
Taxation payable 1 1 3
Linked unitholders for 932 724 823
interest and dividends
Total equity and 37 817 32 562 32 365
liabilities
Net asset value per 1 468 1 418 1 425
linked unit (cents)
Tangible net asset 1 381 1 308 1 327
value per linked unit
(cents)
Note 6:
Non-current
liabilities -
debentures
Fair value at the 18 641 18 283 18 283
beginning of the
period
Issued during the 1 762 - 1 651
period
Fair value adjustment 602 (1 587) (1 293)
(Note 1)
Fair value at the end 21 005 16 696 18 641
of the period
CASH FLOW STATEMENT
Six months Six months 12 months
31 Dec 31 Dec 30 Jun
2009 2008 2009
Rm Rm Rm
Cash flow from operating 1 842 1 005 2 416
activities
Investment income - - 1
Net finance costs (588) (410) (780)
Taxation received/(paid) 12 (5) (7)
Capital items (13) (41) (35)
Distribution to unitholders (820) (708) (1 502)
Net cash inflow/(outflow) 433 (159) 93
from operating activities
Net cash outflow from (1 663) (1 393) (1 767)
investing activities
Net cash inflow from 1 266 2 173 2 144
financing activities
Net increase in cash and 36 621 470
cash equivalents
Cash and cash equivalents at 497 27 27
beginning of the period
Cash and cash equivalents at 533 648 497
end of the period
STATEMENT OF CHANGES IN EQUITY
Foreign
Non- currency
distribut- transla-
Ordinary able tion
share reserve reserve Retained
capital (NDR) (FCTR) earnings
Rm Rm Rm Rm
Audited balance at 30 June 64 1 437 - -
2008
Loss for the period - - - (34)
Transfer amortisationnet of - (35) - 35
deferred tax to NDR
Dividends - - - (1)
Balance at 31 December 2008 64 1 402 - -
Shares issued 6 - - -
Loss for the period - - - (35)
Transfer amortisation net - (36) - 36
of deferred taxation to NDR
Dividends - - - (1)
Audited balance at 30 June 70 1 366 - -
2009
Shares issued 7 - - -
Total comprehensive income - - 27 160
for the six month period
Transfer amortisation net - (35) - 35
of deferred taxation to NDR
Transfer negative goodwill - 202 - (202)
write-off to NDR
Business acquisition - GOZ - - - 77
Transfer reserves with non- - 77 - (77)
controlling interest to NDR
Transfer forex gain to NDR - (8) - 8
Dividends declared - non- - - - -
controlling interest
Dividends declared - linked - - - (1)
unitholders
Balance at 31 December 2009 77 1 602 27 -
Non-
Share- controll-
holders` ing Total
interest interest equity
Rm Rm Rm
Audited balance at 30 June 1 501 - 1 501
2008
Loss for the period (34) - (34)
Transfer amortisationnet of - - -
deferred tax to NDR
Dividends (1) - (1)
Balance at 31 December 2008 1 466 - 1 466
Shares issued 6 - 6
Loss for the period (35) - (35)
Transfer amortisation net - - -
of deferred taxation to NDR
Dividends (1) - (1)
Audited balance at 30 June 1 436 - 1 436
2009
Shares issued 7 - 7
Total comprehensive income 187 54 241
for the six month period
Transfer amortisation net - - -
of deferred taxation to NDR
Transfer negative goodwill - - -
write-off to NDR
Business acquisition - GOZ 77 466 543
Transfer reserves with non- - - -
controlling interest to NDR
Transfer forex gain to NDR - - -
Dividends declared - non- - (14) (14)
controlling interest
Dividends declared - linked (1) - (1)
unitholders
Balance at 31 December 2009 1 706 506 2 212
SEGMENTAL ANALYSIS
STATEMENT OF COMPREHENSIVE INCOME EXTRACTS
Retail Office Industrial Australia Total
Rm Rm Rm Rm Rm
Six months ended 31
December 2009
Revenue excluding 623 725 423 168 1 939
straight-line lease
income adjustment
Property expenses (172) (170) (104) (9) (455)
Segment result 451 555 319 159 1 484
Fair value adjustment:
- Investment property 232 223 80 92 627
- Investment property - - - 30 30
- non-controlling
interest
Total fair value 232 223 80 122 657
adjustment on
investment property
South
Africa Australia Total
Rm Rm Rm
Further extracts of
comprehensive income
Other property 41 11 52
expenses
Finance costs 496 93 589
Retail Office Industrial Australia Total
Rm Rm Rm Rm Rm
Year ended 30 June
2009
Revenue excluding 1 144 1 315 752 - 3 211
straight-line lease
income adjustment
Property expenses (289) (304) (166) - (759)
Segment result 855 1 011 586 - 2 452
Fair value adjustment:
- Investment property 210 (73) 52 - 189
STATEMENT OF FINANCIAL POSITION EXTRACTS
Retail Office Industrial Australia Total
Rm Rm Rm Rm Rm
At 31 December 2009
- Investment property
Opening balance - 30 10 152 12 377 6 682 - 29 211
June 2009
Acquisitions - - - - 4 148 4 148
Australia
Acquisitions - Other - - 50 431 481
Developments and 81 130 68 113 392
capital expenditure
Disposals (58) (261) (60) - (379)
Foreign exchange - - - 81 81
translation
Fair value adjustment 232 253 80 122 687
- Long-term property 232 223 80 122 657
assets
- Reclassified as - 30 - - 30
held for sale
Fair value of 10 407 12 499 6 820 4 895 34 621
property assets - 31
December 2009
- Fair value of long- 10 277 12 136 6 820 4 895 34 128
term property assets
- Investment 130 363 - - 493
property reclassified
as held for sale
South
Africa Australia Total
Rm Rm Rm
Further extracts of financial position
Trade and other receivables 313 18 331
Cash and cash equivalents 509 24 533
Trade and other payables (532) (437) (969)
Other financial liabilities (10 037) (2 316) (12 353)
- Nominal value - interest-bearing (9 491) (2 316) (11 807)
liabilities
- Nominal value - non-interest bearing (76) - (76)
liabilities
- Fair value adjustment (470) - (470)
Retail Office Industrial Australia Total
Rm Rm Rm Rm Rm
At 30 June 2009
- Investment
property
Opening balance - 9 692 11 381 6 172 - 27 245
30 June 2008
Acquisitions 10 195 190 - 395
Developments and 241 960 303 - 1 504
capital
expenditure
Disposals - (88) (34) - (122)
Fair value 209 (71) 51 - 189
adjustment
Fair value of 10 152 12 377 6 682 - 29 211
property assets
-30 June 2009
- Fair value of 10 152 11 803 6 682 - 28 637
long-term property
assets
- Investment - 574 - - 574
property
reclassified as
held for sale
COMMENTARY
INTRODUCTION
Growthpoint is the largest South African listed property company with a quality
portfolio of 435 properties in South Africa valued at R29,7 billion and 24
properties in Australia through its investment in Growthpoint Properties
Australia (GOZ), valued at R4,9 billion.
The company`s mission is to provide investors with a highly liquid, tradable
instrument delivering consistently growing income returns and real capital
appreciation over the long term. Effectively, all rental income received by the
company, less operating costs is distributed to unitholders semi-annually, so
that the company is very similar to the Real Estate Investment Trust (REIT)
models that are well established internationally. Growthpoint`s distributions
are based on sustainable income generated from rentals. The company does not
distribute capital profits.
Growthpoint is included in the JSE ALSI Top 40 Companies Index, having a market
capitalisation of over R21 billion at 31 December 2009. Over the last six
months, on average more than 64 million linked units traded per month. The
monthly average value traded was more than R870 million.
In November 2009 Moody`s Investors Service assigned Growthpoint global long-term
and short-term Issuer Ratings of Baa2 and P2 respectively, and long-term and
short-term South African National Scale Ratings (NSR) of A1.za and P1.za
respectively. These favourable ratings allow Growthpoint direct access to the
debt capital markets and enabled Growthpoint to launch a R5 billion Domestic
Medium Term Note Programme (DMTN).
In terms of gross lettable area (GLA), the South African portfolio amounts to 4
520 170mSquared and the Australian portfolio 732 275mSquared. The South African
portfolio represents 86% of the total portfolio, by value and GLA, and is well
diversified in the three major sectors of commercial property, being office,
retail and industrial. The bulk of the value of the South African properties is
situated in the major metropolitan areas in strong economic nodes.
Financial results
In spite of difficult economic conditions that prevailed since the last quarter
of 2008, Growthpoint has delivered growth in distributions for the six months
ended 31 December 2009 of 5.0%.
The increases in revenue and expenses for the period are impacted by the
inclusion of the results of GOZ for the first time.
Acquisition of a controlling share in an Australian Property Trust
On 30 July 2009, unitholders in Australia`s Orchard Industrial Property Fund
(OIF) voted in favour of all the resolutions required to issue 50.1% of the
units in OIF to Growthpoint for a cash consideration of AUD56 million and to
internalise the management of the fund.
OIF unitholders also approved a 13 for 10 rights offer at 16 Australian cents
per unit, in September 2009, that was underwritten by Growthpoint. In terms of
the rights offer, Growthpoint paid a further AUD139 million and now owns 76.2%
of OIF. The fund`s investment mandate was also expanded to include office and
retail properties.
OIF was renamed Growthpoint Properties Australia (GOZ) and trades on the
Australian Stock Exchange under the share code "GOZ".
Growthpoint used the Institutional investment allowance of a South African
institution to make the AUD195 million investment in GOZ.
GOZ had a market capitalisation of approximately AUD260 million at 31 December
2009. It is management`s goal to grow the fund to a market capitalisation of
over AUD1 billion and to increase liquidity.
The Australian portfolio consists of high quality distribution and logistic
warehouses leased out on long leases to blue chip tenants, which are well
located in the major metropolitan areas of Australia, situated in Victoria
(45%), Queensland (21%), Western Australia (14%), New South Wales (11%) and
South Australia (9%). Australia`s premier retailers, Woolworths and Coles, as
well as Star Trek Express, a freight express company jointly owned by Qantas and
Australian Post Office, account for 76% of the net property income. The weighted
average lease expiry (WALE) is 10.6 years with average rent escalations of 3% in
Australian currency.
Taking into account the expected Rand depreciation against the Australian dollar
over the long term this should provide sustainable, growing income streams to
Growthpoint, together with capital appreciation on the investment. The
diversification should also improve Growthpoint`s overall risk profile.
Inclusion in various indices
Besides the inclusion in the JSE ALSI Top 40 Companies Index, the inclusion in
the MSCI emerging markets index in November 2008 has resulted in increased
international exposure for Growthpoint and the foreign shareholding has
increased to 7.2% at 31 December 2009, from levels of around 3.3% prior to the
inclusion in these indices. In the current period Growthpoint has also been
included in the JSE`s Socially Responsible Investment Index.
COMMENTARY ON RESULTS
BASIS OF ACCOUNTING
These interim consolidated financial statements have not been reviewed or
audited by Growthpoint`s auditors.
These condensed financial statements have been prepared in accordance with IAS
34, Interim Financial Reporting, and the Companies Act of South Africa. The
company`s accounting policies as set out in the audited financial statements for
the year ended 30 June 2009 have been consistently applied, except for the
effect of adopting the revised version of IFRS 3, Business Combinations, and IAS
27, Consolidated and Separate Financial Statements. The adoptions of these
revised standards are applied prospectively.
Investment property comprises land and buildings held to generate rental income
over the long term. Should any properties no longer meet the company`s
investment criteria and be sold, any profits or losses will be of a capital
nature and will be taxed at rates applicable to capital gains. Deferred taxation
on the revaluation of investment property is off-set against the deferred
taxation asset that arises on the revaluation of the company`s issued debentures
(excluding deferred taxation on intangible assets).
ACCOUNTING FOR THE ACQUISITION OF GOZ
In terms of IAS 21, The Effects of Changes in Foreign Exchange Rates, the
consolidated statement of financial position includes 100% of the assets and
liabilities of GOZ, converted at the closing exchange rate at 31 December 2009
of R6,58:AUD1. The consolidated statement of comprehensive income also includes
100% of the revenue and expenses of GOZ, which was translated at an average
exchange rate of R6,56:AUD1 throughout the period. The resulting exchange
differences are recognised in other comprehensive income. A non-controlling
interest was raised for the 23.8% not owned by Growthpoint. Growthpoint entered
into foreign exchange contracts (FEC`s) to hedge the interim distribution that
will be received from GOZ at an average rate of R6.87 per AUD.
The estimated fair value of the assets and liabilities of OIF acquired were as
follows:
AUD`000 Rm
Investment property 642,6 4 148,0
Trade and other receivables 20,7 133,6
Cash and cash equivalents 7,5 48,4
Trade and other payables (30,1) (194,3)
Derivatives (16,7) (107,8)
Interest-bearing borrowings (450,5) (2 908,0)
Net asset value 173,5 1 119,9
50.1% of net asset value obtained 86,9 560,9
Consideration 55,6 358,9
Net asset value exceeding consideration 31,3 202,0
(Negative goodwill)
The exchange rate at the date of acquisition was R6,46:AUD1, due to the fact
that Growthpoint entered into FEC`s for the full purchase consideration of the
GOZ investment.
Based on the proportionate interest measurement basis applied, the non-
controlling interest at the initial acquisition amounted to R559 million.
After the above transaction was concluded, Growthpoint acquired an additional
26.1% in terms of the rights offer. An additional R77 million was accounted for
in the statement of changes in equity as reserves acquired from non-controlling
interests in terms of the revised IAS 27, Consolidated and Separate Financial
Statements.
The initial accounting is incomplete and the amounts are provisional, since
taxation related matters require clarification from independent tax advisors.
REVENUE
Apart from contractual rental escalations, the increase in gross revenue (24.5%)
and property expenses (16.7%) was mainly due to the acquisition of GOZ, as well
as other acquisitions and new developments that contributed, net of disposals,
an additional R202 million to net property income for the six months ended 31
December 2009. On a "like-for-like" basis, net property income increased by
8.9%.
FAIR VALUE ADJUSTMENTS
The interim revaluation of properties resulted in an upward revaluation on South
African properties of R535 million (1.9%) to R29,2 billion for investment
property (excluding properties reclassified as held for sale). An additional R30
million upward revaluation was made on the investment property reclassified as
held for sale. On the Australian portfolio, an upward revaluation of R122
million (2.5%) was made, bringing the value to R4,9 billion.
NON-CASH CHARGES
The acquisition of GOZ was made at a cost less than the fair value of the net
assets acquired. Consequently, R202 million negative goodwill arose, which was
shown as income in the current period. This is an accounting entry that does not
affect cash flow or distributable income.
The acquisition of the Property Services Businesses in the 2008 year gave rise
to a R1,5 billion intangible asset, as well as R448 million of goodwill on
initial recognition. In terms of accounting standards, the intangible asset is
amortised over a 15 year period.
The staff incentive scheme put in place as part of the management "buy-in"
transaction concluded in the 2008 year has given rise to a plan asset, which is
reflected on the balance sheet net of the plan liability. The increase in the
staff incentive scheme liability and the fair value of the plan asset amounting
to R8 million are book entries that do not affect cash flow or distributable
income.
VACANCY LEVELS
At 31 December 2009 Growthpoint South Africa`s vacancy levels, as a percentage
of gross lettable area (GLA) were:
Retail 2.8% (June 2009: 3.2%)
Office 9.2% (June 2009: 8.9%)
Industrial 5.6% (June 2009: 4.4%)
Total 6.0% (June 2009: 5.4%)
Vacancy levels have increased from 5.4% at 30 June 2009 to 6.0% at 31 December
2009. Approximately 1.1% of the 6.0% is in four new office developments and two
new industrial developments that came on stream over the last year. This is high
quality space in good locations and should provide some upside when the economy
recovers and letting improves.
Since the last quarter of 2008, there has been a marked slow-down in economic
activity and it is taking longer than anticipated to let vacant space.
ARREARS
At the end of December 2009, total arrears amounted to R57,9 million (June 2009:
R36,4 million) and a provision of R20,7 million (June 2009: R16,7 million) has
been raised for potential bad debts.
For the six months ended December 2009 the total bad debts expense amounted to
R9,7 million (December 2008: R6,2 million).
ACQUISITIONS AND DISPOSALS
In December 2009, GOZ acquired another industrial property in Goulburn, at a
forward yield of 9.9%. The acquisition was funded from existing syndicated debt
facilities provided by financial institutions for AUD 65,5 million (R431
million). The purchase price, net of a deposit, was only payable on 1 February
2010 but was included in trade and other payables (R410 million). In South
Africa, an industrial property was acquired for R50 million in December 2009 at
a forward yield of 11.3%.
Four properties were disposed of in the current period for R379 million.
BORROWINGS
At 31 December 2009, the loan to value ratio (LTV) measured by dividing the
nominal value of interest-bearing borrowings less cash by the fair value of
property assets, including investment property held for sale, was 32.6% (30 June
2009: 32.2%). Excluding GOZ, the LTV decreases to 30.2%.
118.3% of interest-bearing debt was fixed at a weighted average rate of 10.3%
(including margin) for a weighted average of 8.0 years at 31 December 2009. It
is intended to reduce the over-hedged position to below 100%.
SHARE AND DEBENTURE CAPITAL
The authorised share capital is R100 000 000 divided into two billion ordinary
shares of five cents each. Each ordinary share is linked to ten variable rate
debentures of 250 cents each.
The ordinary shares and debentures trade as linked units on the JSE. In terms of
the debenture trust deed, the interest payable on the debenture component of the
linked unit is always 1 000 times greater than the dividend payable per ordinary
share.
96 637 537 new Growthpoint linked units were issued in September 2009 to fund
the acquisition of GOZ. A further 41 865 537 linked units were issued in
September 2009 to those Growthpoint linked unitholders who elected to reinvest
their 2009 final distribution. The linked units were issued at R13,09 and R12,90
respectively.
CHANGES TO THE BOARD
Mrs Lynette Finlay and Mrs Mpume Nkabinde have been appointed as non-executive
directors of Growthpoint with effect from 4 November 2009.
PROSPECTS
It is expected that growth in distributions for the full year will be in line
with the growth rate achieved in the six months ended 31 December 2009.
This profit forecast has not been reviewed or reported on by Growthpoint`s
auditors.
DIVIDEND AND INTEREST PAYMENT
Notice is hereby given of interim dividend declaration number 47 of 0.059 cents
and debenture interest payment number 47 of 59.041 cents per linked unit
totalling 59,1 cents per linked unit for the six months ended 31 December 2009.
Timetable for interim distribution:
2010
Last day to trade "cum" the interim Friday, 12 March
distribution
Linked units commence trading "ex" the interim Monday, 15 March
distribution
Record date to participate in the interim Friday, 19 March
distribution
Payment date of the interim distribution Tuesday, 23 March
No dematerialisation or rematerialisation of Growthpoint linked unit
certificates may take place between Monday, 15 March 2010 and Friday, 19 March
2010, both days inclusive.
By order of the Board
Growthpoint Properties Limited
23 February 2010
Directors
JF Marais (Chairman)
HSP Mashaba (Deputy Chairman)
LN Sasse* (Chief Executive Officer)
EK de Klerk*
MG Diliza
PH Fechter
L Finlay
JC Hayward
HS Herman
R Moonsamy
BPN Nkabinde
SM Snowball*
CG Steyn
JHN Strydom
FJ Visser
*Executive
Transfer secretary:
Computershare Investor Services (Pty) Limited
(Registration number 2004/003647/07)
Ground Floor, 70 Marshall Street, Johannesburg, 2001
PO Box 61051, Marshalltown, 2107
Registered office
The Place, 1 Sandton Drive, Sandton, 2196
PO Box 78949, Sandton, 2146
Sponsor:
Investec Bank Limited
100 Grayston Drive, Sandown Sandton, 2196
PO Box 78949, Sandton, 2146
www.growthpoint.co.za
Green Building Council
Property Loan Stock Association
Date: 24/02/2010 11:00:04 Produced by the JSE SENS Department.
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