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Growthpoint - Reviewed final results for the fifteen-month period ended 30 June
2002, dividend declaration and cautionary announcement
Growthpoint Properties Limited
(Registration number 1987/004988/06)
JSE SHARE CODE: GRT ISIN: ZAE000012712
("Growthpoint" or "the company")
Reviewed final results for the fifteen-month period ended 30 June 2002, dividend
declaration and cautionary announcement
INCOME STATEMENT
Reviewed Unaudited Audited
15 months 9 months 12 months
ended ended ended
30 June 31 Dec 31 March
2002 2001 2001
R`000 R`000 R`000
Revenue 313 270 113 879 19 780
Operating income 197 760 86 373 15 633
Interest paid (67 718) (27 397) (10 375)
Interest earned 5 527 1 710 287
Net income before taxation 135 569 60 686 5 545
Taxation (17) (34) (1)
Net income after taxation 135 552 60 652 5 544
Linked units in issue 246 303 721 1 231 518 605 33 896 383
Weighted number of linked units
in issue 166 462 240 566 172 926 33 896 383
Earnings per linked unit (cents) 81,43 10,71 16,35
Headline earnings per linked unit (cents) 81,43 10,71 13,62
Earnings/Headline earnings
are calculated as follows:
Net income before taxation 135 569 60 686 5 545
Taxation (17) (34) (1)
Earnings 135 552 60 652 5 544
Abnormal items - - (928)
Headline earnings 135 552 60 652 4 616
Distribution analysis:
Distributions paid (135 534) (60 633) (5 311)
Interim distribution to September 2000 - - 2 057
Final distribution to March 2001 - - 3 254
Five-month distribution to August 2001 2 136 2 136 -
Four-month distribution to December 2001 58 497 58 497 -
Six-month distribution to June 2002 74 901 - -
Distribution per linked unit after 1-for-5
consolidation (cents) 85,66 55,25 78,35
Interim distribution to
September 2000 (Restated) - - 30,35
Final distribution to March 2001 (Restated) - - 48.00
Five months to August 2001 (Restated) 31,50 31,50 -
Four months to December 2001 (Restated) 23,75 23,75 -
Six months to June 2002 30,41 - -
Distribution per linked unit before
consolidation (cents) 17,13 11,05 15,67
Interim distribution to September 2000 - - 6,07
Final distribution to March 2001 - - 9,60
Five months to August 2001 6,30 6,30 -
Four months to December 2001 4,75 4,75 -
Six months to June 2002 (Equivalent) 6,08 - -
BALANCE SHEET
Reviewed Audited
30 June 31 March
2002 2001
R`000 R`000
Assets
Investment properties 1 782 962 119 197
Current assets 103 120 13 705
1 886 082 132 902
Equity and liabilities
Capital and reserves 1 125 419 47 541
Non-current liabilities 642 399 79 445
Current liabilities 118 264 5 916
1 886 082 132 902
Number of linked units in issue 246 303 721 33 896 383
Net asset value per linked unit (cents) 456,92 140,25
STATEMENT OF CHANGES IN EQUITY
Non- Total share
Share Debenture distributable Retained capital and
capital capital reserve income reserves
R`000 R`000 R`000 R`000 R`000
Audited balance
at 1 April 2000 339 54 260 8 006 (15 297) 47 308
Transfer from
non-distributable
reserve (8 006) 8,006
Net income for the year 5 544
Debenture interest paid (5 306)
Dividends (5)
Audited balance at
31 March 2001 339 54 260 - (7 058) 47 541
Transfer from
retained income 6 006 (6 006)
Shares issued 11 976
Debentures issued 1 065 884
Net income for the period 135 552
Debenture interest paid (135 399)
Dividends (135)
Reviewed balance at
30 June 2002 12 315 1 120 144 6 006 (13 046) 1 125 419
Abridged Cash flow statement
Reviewed Audited
30 June 31 March
2002 2001
R`000 R`000
Cash generated by operations 217 885 14 851
Net finance costs (62 191) (10 375)
Taxation paid (30) (5)
Distribution to shareholders (63 883) (4 570)
Cash flow from operating activities 91 781 (99)
Cash flow from investing activities (585 906) 32
Cash flow from financing activities 562 954 1 140
Net increase in cash and cash equivalents 68 829 1 073
Cash and cash equivalents at beginning of period 4 747 3 674
Cash and cash equivalents at end of period 73 576 4 747
Basis of Accounting
The Annual Financial Statements have been prepared in accordance with the
South African Statements of Generally Accepted Accounting Practice. During the
period under review, the company changed its year-end from 31 March to 30 June
and the results therefore cover a 15-month period.
The accounting policies used in the preparation of the annual financial
statements are consistent with those used in the previous period apart from the
fact that for the period under review, the company adopted accounting statement
AC 135 (Investment Properties) for the first time. Due to the fact that 53 of
the 62 properties being reported on for the period were acquired within the past
10 months as part of third party, arm`s length transactions at fair market
values, the directors believe that no valuation adjustment should be made to the
book values of the properties due to no significant changes in the market value
at 30 June 2002.
Auditors` Report
The results for the period have been reviewed by KPMG Inc. and their
unqualified review opnion is available for inspection at the company`s
registered office.
Financial results of Growthpoint
The financial results of Growthpoint for the period to June 2002 incorporate
the results of the old Growthpoint portfolio (nine properties) for the 15-month
period from April 2001 to June 2002, the results of the property portfolio (51
properties) acquired from the Mine Pension Funds ("MPF") for the 10-month period
from September 2001 to June 2002, as well as the results of the Meerlus office
block acquired with effect from February 2002 and the Beacon Bay retail centre
acquired with effect from April 2002.
The results are therefore not comparable with those of the previous periods.
However, the distributions continue to be in line with the forecast as set out
in the circular to Growthpoint linked unit holders dated 31 July 2001 and the
forecast made at the time of the capital raising for the acquisition of the MPF
property portfolio which amounted to 62,5 cents per linked unit for the period
September 2001 to August 2002 (12,5 cents per linked unit before the
consolidation of the linked units on a 1-for-5 basis).
On an annualised basis, the actual distributions for the 10-month period
September 2001 to June 2002 of 54,16 cents per linked unit (10,83 cents per
linked unit before the consolidation) amounts to
65,0 cents per linked unit (13,0 cents per linked unit before the consolidation)
which is 4% ahead of the forecast made at the time of the capital raising.
Acquisitions and disposals
During the 15-month period under review Growthpoint acquired the MPF property
portfolio for R1 539,8 million, details of which were provided in a circular to
linked unit holders dated 31 July 2001.
Other acquisitions included the Meerlus office block in Centurion with effect
from February 2002 for R16,6 million and the Beacon Bay retail centre in East
London with effect from April 2002 for R88,5 million.
An agreement was entered into on 16 May 2002 in terms of which Growthpoint has
disposed of the property known as the Nestl building, situated in Pinetown,
KwaZulu-Natal for a cash consideration of R53 million. It is anticipated that
transfer of this property will take place at the end of August 2002.
Property portfolio
The property portfolio of Growthpoint pursuant to the acquisitions and
disposal mentioned above comprises 58 commercial, retail and industrial
properties and three hotels. The total gross lettable area of 720 929 m2
consists of commercial (48,0%), retail (25,7%), industrial (20,8%) and hotel
(5,5%) properties.
The major assets by value and net income include La Lucia Mall in KwaZulu-
Natal, Constantia Office Park, River Square Shopping Centre, Alberton City
Shopping Centre (31,25%) and Gillooly`s View Office Park in Gauteng and Belmont
Office Towers in the Western Cape.
At 30 June 2002 total vacancies amounted to 80 806 m2 or 11% of total gross
lettable area. The major vacancies are 12 877 m2 in the Ernst & Young building
in the Johannesburg CBD and 9 914 m2 in the OK Brakpan building in Brakpan.
Borrowings and cash balances
Total borrowings at 30 June amounted to R629 million. Interest rates in
respect of 86% of total borrowings have been fixed for varying periods with the
earliest expiry being April 2004 and the latest expiry being August 2008. The
weighted average interest rate paid by Growthpoint on these borrowings in terms
of which interest rates have been fixed amounts to 13,3%.
Cash balances at 30 June 2002 amounted to R73,5 million.
Share and Debenture Capital
Pursuant to the acquisition of the MPF property portfolio, Growthpoint`s
issued share and debenture capital comprised
1 231 518 605 linked units. Each linked unit comprised 1 share of
1 cent linked to 10 debentures of 50 cents each. With effect from
22 April 2002 the linked units were consolidated on a 1-for-5 basis resulting in
the issued share and debenture capital after consolidation comprising
246 303 721 linked units. Each linked unit now comprises 1 share of
5 cents linked to 10 debentures of 250 cents each.
Post-Balance Sheet Events
On 20 August 2002 Growthpoint entered into nine separate agreements in terms
of which it has acquired a portfolio of nine industrial warehouse and office
buildings from The Laser Group Limited ("Laser") for a total purchase
consideration of R50,3 million. The properties are spread across the major
industrial areas in the country (Epping, Midrand and Pinetown) and all have
remaining lease periods of six years and eight months calculated from 1
September 2002. The tenant in all the buildings is Laser Transport Group (Pty)
Limited, the owner of South Africa`s leading household removals brand names
Stuttaford Van Lines, Pickford Removals, Frasers International and Sandton
Office Removals which have been operating in the country for the past 100 years.
The disposal of the properties by Laser is conditional on the approval of Laser
shareholders in general meeting which is expected to take place towards the end
of September 2002.
Prospects
The Board is reasonably confident that, subject to market conditions remaining
stable, Growthpoint will deliver growth in distributions for the year to 30 June
2003 which growth should be measured against the forecast distribution of 62,5
cents per linked unit for the 12-month period September 2001 to August 2002 made
at the time of the acquisition of the MPF portfolio.
Declaration of final dividend and interest payment
Notice is hereby given of final dividend declaration number 30 of 0,0304 cent
and debenture interest payment number 30 of 30,3796 cents per linked unit for
the income distribution period 1 January 2002 to 30 June 2002. The total amount
payable to linked unit holders amounts to 30,41 cents ("the final distribution")
per Growthpoint linked unit and will be paid to linked unit holders in
accordance with the timetable set out in the table below:
2002
Last day to trade "cum" the final distribution Friday, 13 September
Linked units commence trading "ex" the
final distribution Monday, 16 September
Record date to participate in the
final distribution Friday, 20 September
Payment date of the final distribution Monday, 23 September
No dematerialisation or rematerialisation of Growthpoint linked unit
certificates may take place between Monday, 16 September 2002 and Friday, 20
September 2002, both days inclusive.
Cautionary Announcement
Growthpoint linked unit holders are advised that the company has entered into
negotiations which, if successfully concluded, may have an effect on the market
price at which the company`s linked units trade on the JSE Securities Exchange
South Africa. Growthpoint linked unit holders are accordingly advised to
exercise caution in dealing in their linked units until a further announcement
is made.
By order of the Board
C M Liebenberg, Secretary
30 August 2002
Registered office: 100 Grayston Drive, Sandown, Sandton, 2196.
PO Box 78949, Sandton, 2146
Transfer secretaries: Computershare Investor Services Limited
(Registration number 1958/003546/06)
11 Diagonal Street, Johannesburg, 2001
PO Box 1053, Johannesburg, 2000
Managed by: Investec Property Group
Date: 29/08/2002 05:26:00 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
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