South Africa's Growthpoint boosted by lower vacancies and rental discounts (updated)

Growthpoint Properties Australia

14/09/2022 08:18

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    JOHANNESBURG, Sept 14 (Reuters) - South Africa's largest
property owner Growthpoint Properties  GRTJ.J  said on Wednesday
its full-year distributable income rose by 5.1%, on lower
vacancies and rental discounts.
    Growthpoint said its distributable income per share, the
primary measure of underlying financial performance in the
listed property sector, rose to 155.6 cents in the year ended
June from 148.1 cents a year earlier.
    However, the co-owner of the upmarket V&A Waterfront
development, which is home to several corporate head offices,
hotels, shops and restaurants, said its revenue fell by 0.6% to
13 billion rand ($744.98 million) as a result of 37 property
sales.
    Growthpoint, with a portfolio of 408 properties in South
Africa, said the vacancy rate in retail had fallen to 5.5% from
6.2%, while in industrial it fell to 5.7% from 9.4%, but the
rate increased in office to 20.7% from 19.9% due to remote
working.
    "The office sector remains oversupplied, but until the South
African economy enters a growth phase, conditions will remain
challenging for businesses and consequently the office sector,"
Growthpoint said.
    Growthpoint, which also owns a 62.2% stake in Growthpoint
Properties Australia  GOZ.AX  and a 60.8% interest in UK's
Capital & Regional Plc  CAL.L  also said the local retail sector
was largely back to pre-COVID levels, and although consumers
remain under financial pressure, it anticipated modest growth
from it. 
    

($1 = 17.4501 rand)

 (Reporting by Nqobile Dludla; editing by Jason Neely and David
Evans)
 ((nqobile.dludla@thomsonreuters.com; +27103461066;))