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GRT - Growthpoint Properties - Audited results for the year ended 30 June 2008
and dividend declaration
Growthpoint Properties Limited
(Incorporated in the Republic of South Africa)
(Registration number 1987/004988/06)
Share code: GRT ISIN ZAE000037669
AUDITED RESULTS
FOR THE YEAR ENDED 30 JUNE 2008
- 14.4% distribution growth to 106,5 cents per linked unit
- R1,6 billion Management "Buy-in"
- 22.9% growth in property ASSETS TO OVER R27 Billion
- R1,65 billion capital raised
Consolidated Income Statement
2008 2007
Note Rm Rm
Revenue excluding straight-line lease income
adjustment 2 712 2 152
Straight-line lease income adjustment 208 210
Revenue 2 920 2 362
Property expenses (675) (539)
Net property income 2 245 1 823
Other operating expenses (62) (120)
Net property income after other operating
expenses 2 183 1 703
Investment income 1 45
Operating profit 2 184 1 748
Fair value adjustments 1 (139) (186)
Finance costs (697) (615)
Non-cash charges 2.1 (193) (16)
Trading profit and other capital items 22 (6)
Finance income 87 44
Profit before debenture interest 1 264 969
Debenture interest (1 363) (966)
(Loss)/profit before taxation (99) 3
Taxation 1 (2)
- normal and secondary tax on companies (4) -
- capital gains taxation 5 (2)
(Loss)/profit for the year 2.2 (98) 1
Note 1:
Fair value adjustments (139) (186)
Gross investment property fair value adjustment 1 823 2 802
Paramount initial recognition adjustment - (579)
Less: straight-line lease income adjustment (208) (210)
Net investment property fair value adjustment 1 615 2 013
Listed property investments (1) 7
Borrowings and derivatives 1 197 125
Long-term loans granted to BEE consortia (48) 34
Debentures (2 902) (2 365)
Debentures are adjusted to fair value which
represents the net asset value
attributable to debenture holders,
excluding intangible assets.
The debentures fair value adjustment consists of:
Fair value adjustments for other assets and
liabilities
excluding fair value adjustment on debentures (2 763) (2 179)
Straight-line lease income adjustment (208) (210)
Capital gains taxation (5) 2
Non-cash financing charge 19 16
Increase in staff incentive scheme liability 75 -
Trading profit and other capital items net of
taxation (20) 6
Debenture fair value adjustment (2 902) (2 365)
Note 2:
2.1 Non-cash charges (193) (16)
Non-cash financing charge (19) (16)
Amortisation of intangible asset (99) -
Increase in staff incentive scheme liability (75) -
2.2 Loss for the year
The loss for the year is attributable to the
amortisation
of the intangible assets. This is a non-cash
accounting entry
and does not affect distributable earnings.
Calculation of distributable earnings
Net property income after other operating
expenses 2 183 1 703
Less: Straight-line lease income adjustment (208) (210)
Investment income 1 45
Finance costs (697) (615)
Finance income 87 44
Taxation (excluding capital gains tax and
tax on residential units sold) (2) -
Distributable earnings 1 364 967
Total distribution (1 364) (967)
- Debenture interest (1 363) (966)
- Ordinary dividend (1) (1)
Retained distributable earnings - -
Linked Linked
units units
Linked units in issue at the end of the year 1 280 926 195 1074 126 195
Weighted number of linked units in issue 1 238 460 442 1030 639 648
cents cents
Distributable earnings per linked unit 3 106,46 93,82
- Interim 51,12 45,19
- Final 55,34 48,63
Distribution per linked unit 106,50 93,10
Six months ended 31 December 51,10 45,00
- Period to 31 October - 30,00
- Period to 31 December 51,10 15,00
Six months ended 30 June 55,40 48,10
Basic (loss)/earnings per share 3 (7,91) 0,09
Headline earnings per linked unit 4 159,31 90,73
Rm Rm
Basic (loss)/earnings are reconciled to
headline earnings as follows:
(Loss)/profit after taxation (98) 1
Add back: net fair value adjustment -
investment property (1 381) (1 711)
- Fair value adjustment (1 615) (2 013)
- Applicable taxation 234 302
Headline loss attributable to shareholders (1 479) (1 710)
Less: net fair value adjustment - debentures 2 089 1 679
- Fair value adjustment 2 902 2 365
- Applicable taxation (813) (686)
Add back: debenture interest paid 1 363 966
Headline earnings attributable to linked
unitholders 1 973 935
Note 3:
The disclosure of earnings per share, while obligatory in terms of accounting
standards, is not meaningful to investors as the shares are traded as part of a
linked unit and practically all of 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 for listed property investments, fair value
adjustments for 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 4:
The comparative headline earnings per linked unit ratios have been restated in
terms of Circular 8/2007, issued November 2007 by SAICA. Per the circular, the
debenture fair value adjustment is added back in the calculation of headline
earnings.
Basis of PREPARATION
This preliminary report has been prepared in accordance with the recognition
and measurement requirements of International Financial Reporting Standards
(IFRS) and the presentation and disclosure requirements of IAS 34, Interim
Financial Reporting. The company`s accounting policies as set out in the
audited financial statements for the year ended 30 June 2007 have been
consistently applied in the preparation of these consolidated financial
statements. The amendment to IAS 40, Investment Properties, whereby investment
properties under construction can be classified as investment property, has
been early adopted. These results have been summarised from the group annual
financial statements. The auditors, KPMG Inc., have expressed an unqualified
audit opinion on the group annual financial statements and their unqualified
report is available for inspection at the registered office.
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 capital in
nature and will be taxed at rates applicable to capital gains. Deferred
taxation on 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 tax on intangible assets).
Consolidated Balance Sheet
2008 2007
Rm Rm
ASSETS
Non-current assets 30 231 22 632
Fair value of investment property for
accounting purposes 26 409 21 545
Straight-line lease income adjustment 836 628
Fair value of property assets 27 245 22 173
Intangible assets 1 832 -
Other long-term employee benefits 59 -
Equipment 2 -
Listed property investments 9 11
Long-term loans granted to BEE consortia 325 340
Derivative asset 759 108
Current assets 426 325
Investment property held for sale 42 -
Trade and other receivables 357 306
Cash and cash equivalents 27 19
Total assets 30 657 22 957
EQUITY AND LIABILITIES
Shareholders` interest 1 501 54
Ordinary share capital 64 54
Non-distributable reserve 1 437 -
Non-current liabilities-debentures 18 283 13 646
Linked unitholders` interest 19 784 13 700
Other non-current liabilities 9 519 8 293
Other non-current financial liabilities 9 132 8 293
Deferred tax liability 387 -
Current liabilities 1 354 964
Trade and other payables 638 385
Current portion of non current liabilities - 53
Taxation payable 5 5
Linked unitholders for interest and
dividends 711 521
Total equity and liabilities 30 657 22 957
L inked units in issue 1 280 926 195 1 074 126 195
Net asset value per linked unit (cents) 1 545 1 275
Tangible net asset value per linked unit
(cents) 1 432 1 275
Summarised Consolidated Cash Flow Statement
2008 2007
Rm Rm
Cash flow from operating activities 2 057 1 484
Investment income 1 45
Net finance costs (523) (598)
Taxation received/(paid) 1 (22)
Trading profit and other capital items 22 (6)
Distribution to unitholders (1 174) (804)
Net cash inflow from operating activities 384 99
N et cash outflow from investing activities (3 296) (1 339)
Net cash inflow from financing activities 2 920 1 243
Net increase in cash and cash equivalents 8 3
Cash and cash equivalents at beginning of the year 19 16
Cash and cash equivalents at end of the year 27 19
Consolidated Statement of Changes in Equity
Ordinary share Non-distributable
capital reserves
Rm Rm
Balance at 30 June 2006 39 -
Shares issued 15 -
Profit for the year - -
Dividends - -
Balance at 30 June 2007 54 -
Shares issued 10 1 536
Loss for the year - -
Transfer to non-
distributable reserve - (99)
Dividends - -
Balance at 30 June 2008 64 1 437
Shareholders`
Reserves interest
Rm Rm
Balance at 30 June 2006 - 39
Shares issued - 15
Profit for the year 1 1
Dividends (1) (1)
Balance at 30 June 2007 - 54
Shares issued - 1 546
Loss for the year (98) (98)
Transfer to non-
distributable reserve 99 -
Dividends (1) (1)
Balance at 30 June 2008 - 1 501
Segmental Analysis
INCOME STATEMENT EXTRACTS
Retail Office Industrial Total
Rm Rm Rm Rm
Year ended 30 June 2008
Revenue excluding
straight-line lease income
adjustment 1 003 1 050 659 2 712
Straight-line lease income
adjustment 57 99 52 208
Revenue 1 060 1 149 711 2 920
Property expenses (260) (263) (152) (675)
Net property income 800 886 559 2 245
Fair value adjustment:
- investment property 376 735 712 1 823
Year ended 30 June 2007
Revenue excluding
straight-line lease
income adjustment 813 810 529 2 152
Straight-line lease income
adjustment 61 97 52 210
Revenue 874 907 581 2 362
Property expenses (222) (200) (117) (539)
Net property income 652 707 464 1 823
Fair value adjustment:
- investment property 887 826 511 2 224
BALANCE SHEET EXTRACTS
At 30 June 2008
Non-current assets
- Investment property
- Opening balance -
30 June 2007 8 573 8 499 5 101 22 173
- Reclassification (73) 73 - -
- Acquisitions 654 1 555 57 2 266
- Developments and
capital expenditure 261 582 302 1 145
- Disposals (99) (21) - (120)
- Transfer to investment
property held for sale - (42) - (42)
- Fair value adjustment 376 735 712 1 823
- Fair value of property
assets - 30 June 2008 9 692 11 381 6 172 27 245
At 30 June 2007
Non-current assets
- Investment property
- Opening balance -
30 June 2006 6 062 5 563 3 392 15 017
- Reclassification - (147) 147 -
- Acquisition - Paramount 1 126 1 492 876 3 494
- Acquisitions - other 433 464 174 1 071
- Developments and
capital expenditure 122 309 102 533
- Disposals (57) (8) (101) (166)
- Fair value adjustment 887 826 511 2 224
- Fair value of property
as sets - 30 June 2007 8 573 8 499 5 101 22 173
Commentary
Introduction
Growthpoint Properties Limited is the largest South African listed property
company with 436 properties valued at over R27 billion and a market
capitalisation of R14 billion at 30 June 2008.
The portfolio is well diversified both geographically and by sector.
SEE PRESS FOR GRAPH
Financial results
For the year ended 30 June 2008, Growthpoint recorded 14.4% growth in
distributions per linked unit. This was slightly ahead of the 13.5% growth
achieved in the interim 6 months ended 31 December 2007. Tangible net asset
value increased by 12.3% to 1 432 cents per linked unit.
The growth in distributions was based on core, sustainable earnings derived
from property net rental income. In keeping with the terms of its debenture
trust deed, Growthpoint does not distribute capital profits.
On 1 October 2007, Growthpoint raised R1,65 billion through the issue of 100
million new linked units in terms of a claw-back rights offer. This contributed
significantly to the growth in earnings and distributions for the
year being higher than anticipated at the time of announcing the 2007 results.
The timing of the capital raising was fortunate, as market conditions were
favourable and the cash was raised at a forward yield of less than 7%.
The other significant transaction that occurred during the year was the
acquisition of the property fund management and property management and all
related activities (Property Services Businesses) from Investec Property Group
Limited (IPG) and Growthpoint`s black economic empowerment partners for a
consideration of R1,6 billion. This was settled by the issue of 98,3 million
new linked units to the sellers, while an additional 8,5 million linked units
were issued to the Staff Incentive Scheme. This was also a distribution
enhancing transaction for Growthpoint, with the cash saving for the year in
asset management fees and net property management expenses equal to
approximately R141 million.
Prior to this transaction, Growthpoint did not have any employees. The property
asset management and property management functions were performed by IPG in
terms of a management contract. Growthpoint has, through this transaction,
effectively bought back the management and created an internally managed
company. Growthpoint is now uniquely positioned as the only listed property
company that performs every aspect of property fund management, property
administration, letting, facilities management, developments and
redevelopments internally.
Revenue
Apart from normal rental escalations, the large increase in gross revenue
(26.0%) and property expenses (25.2%) was mainly due to the following:
Income from 73 properties acquired from Paramount Property Fund Limited
(Paramount) was included in the 2007 results for six months, whereas in the
current year they were included for 12 months.
The 2008 year included income from R2,3 billion worth of properties acquired
during the year, as well as from R1,1 billion spent on developments and capital
expenditure.
Excluding the impact of acquisitions and disposals, "like-for-like" property
net income increased by 11.0% from 2007 to 2008.
Costs
Following the management "buy-in" transaction, Growthpoint no longer pays any
asset management fees to the external manager. This was the main reason for
other operating expenses decreasing by R58 million.
Investment income
Prior to 1 January 2007, Growthpoint had acquired a minority interest in
Paramount, from which the company earned R45 million investment income in the
2007 financial year. As the earnings of Paramount have been consolidated in the
Growthpoint group figures since 1 January 2007, the only investment income
earned in the 2008 financial year was R1 million from Growthpoint`s small
investment in Ambit Properties Limited.
Financing costs
The R3,4 billion spent on acquisitions, developments and capital expenditure
during the year was partly financed by R1,65 billion additional equity capital
raised, with the balance being financed from additional borrowings.
This accounted for the R82 million increase in finance costs from R615 million
to R697 million.
Fair value adjustments
The year-end revaluation of properties resulted in an upward revaluation of
R1,8 billion to R27,2 billion. Growth in rentals drove the increase in value,
despite the increase in interest rates experienced over the last year.
Relatively high interest rates at 30 June 2008 gave rise to a R1,2 billion
decrease in the fair value of borrowings and interest rate swaps. These two
fair value adjustments resulted in an increase in the amount owing to debenture
holders, as debentures are also held at fair value, which is determined as
being the net fair value of all tangible assets less other liabilities.
Non-cash charges
The acquisition of the Property Services Businesses 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 will be
amortised over a 15 year period, the same period used to obtain a discounted
cash flow valuation of the businesses acquired.
The issue of 8,5 million new linked units in terms of the Staff Incentive
Scheme, put in place as part of the management "buy-in" transaction, also
gave rise to a plan asset, shown on the balance sheet net of the plan
liability.
The amortisation of the intangible asset and increase in Staff Incentive
Scheme liability are book entries that do not affect cash flow or
distributable income. These entries account for the increase in non-cash
charges shown in the income statement.
Finance income
The R44 million additional finance income received was mainly as a result of
issuing 100 million new linked units in terms of the capital raising exercise.
The holders of these linked units were paid the full interim distribution for
the six months ended 31 December 2007, but were obliged to pay back to
Growthpoint a pro-rata portion of the distribution from 1 July 2007 until the
date of closure of the claw-back offer, early in December 2007.
Investment property
Of the R2,3 billion of new properties acquired in the year, office properties
represented R1 555 million and retail R654 million. During the year, the
company spent an additional R582 million on office developments, R261 million
on retail development and R302 million on industrial developments. The year-
end discounted cash flow valuations resulted in increases in property values of
R735 million for office, R376 million for retail and R712 million for
industrial, representing an average increase over the entire portfolio of
approximately 7%.
INTANGIBLE ASSETS AND DEFERRED TAX LIABILITY
On the acquisition of the Property Services Businesses, the group recognised an
intangible asset in respect of the right to manage property of R1,5 billion.
Using the deferred tax principle that the intangible asset will be recovered
through use, a deferred tax liability of R387 million was raised on initial
recognition. The intangible asset value of R1,5 billion, less the deferred tax
liability of R387 million, resulted in a net asset value acquired of R1,1
billion. Goodwill of R448 million represents the excess of the purchase
consideration over the net asset value acquired. The intangible asset in
respect of the right to manage properties is amortised over 15 years. The
charge for the current financial year amounted to R99 million.
Vacancy levels
The impact of interest rates being raised by 4.5% over the last two years and
higher fuel and food prices has caused a slow-down in the economy.
Growthpoint has to date not seen a significant increase in arrears and bad
debts or vacancy levels. Building construction costs, especially steel, have
grown at a rate well in excess of CPI inflation. This has made the viability of
new developments dependent on achieving rentals of at least double the average
rentals currently being paid. Vacancy levels in all sectors have remained low.
The relatively large areas of office developments that Growthpoint has
completed and is busy with, will cause temporary increases in the office
vacancies over the next year as these developments will not all be fully let on
completion.
At 30 June 2008 Growthpoint`s vacancy levels, as a percentage of gross lettable
area (GLA) were:
Retail 2.8% (2007: 2.1%)
Office 4.9% (2007: 4.2%)
Industrial 2.1% (2007: 2.0%)
Total 2.9% (2007: 2.5%)
Major acquisitions and developments
Most of the acquisitions and developments concluded in the current year were
listed in the 2007 annual report as transactions in progress and are listed in
Growthpoint`s current year Corporate Profile. The most significant of these
are:
- Woodmead Retail Park was completed at a cost of R505 million and opened in
April 2008. This 52 333m2 regional shopping centre is practically fully let and
is subject to a one-year rental guarantee from the developer. The property
was acquired on an initial yield of 8.0%.
- The Place, a 32 636m2 premier grade low-rise office at 1 Sandton Drive was
completed in March 2008 at a cost of R490 million. At the date of this report,
all of the space was let but some smaller tenants are still to take occupation.
On a fully let basis, this prime asset is expected to show a 10.1% initial
yield.
' The District, a 17 346m2 low-rise office block in Woodstock, Cape Town, was
completed at the end of May 2008 at a cost to Growthpoint of R270 million.
There is a one-year rental guarantee in place from the seller based on an
initial yield of 8.1%.
- Montclare in Claremont, Cape Town, should be completed in phases from
August 2008 to November 2008 at a total cost of about R500 million. The property
consists of 29 347m2 of retail and office space, of which 24 729m2 has been
let. There are also 61 residential units which will be sold on sectional title.
To date 47 units have been pre-sold.
- 11 Adderley Street is the redevelopment of 22 136m2 of office space in Cape
Town that is expected to be completed by November 2008. This development is
expected to yield 9.5% when fully let. To date 2 968m2 has been let. The
redevelopment also includes a major refurbishment of the existing retail
component, known as Grand Parade Centre. The total redevelopment cost is
approximately R200 million.
- Other major developments still in progress are the R475 million extension
to Investec`s head office building in Sandton, which is expected to be completed
in November 2008 at an initial yield of 8.1% and Lincoln on the Lake, a
R94 million office development of 6 179m2 in Umhlanga Ridge, which is due for
completion in June, at an initial yield of between 9.0% and 10.0%.
- Growthpoint Industrial Estate is a secure industrial park in Meadowdale,
close to the airport and with good access to major highways. Growthpoint
acquired the park as vacant, serviced land with potential to build 120 000m2 of
high grade warehousing facilities. The first development, a state of the art,
11 760m2 warehouse and distribution facility for Justine Avon, was completed
during the year at a cost of R56 million. The next development, a R90 million
17 406m2 warehouse for Barloworld Logistics, is due for completion in November
2008. Work has also commenced on the construction of 25 000m2 of mini-units,
which are being built in response to strong market demand.
In total, the value of developments in progress amounts to R1,8 billion of
which R487 million has been spent at 30 June 2008, with the balance of
R1,3 billion having to be spent over the next 12 months. In addition, the
value of pending future developments, not yet approved amounts to R1,1 billion.
Disposals
In line with Growthpoint`s strategy to dispose of properties which no longer
meet its investment criteria, three properties were disposed of for R111
million at a profit of R11 million on cost. The largest was The Paddocks, a
neighbourhood shopping centre in Milnerton, Cape Town. In addition, some
residential apartments at Lighthouse Mall in Durban were sold for R9 million.
Borrowings
At 30 June 2008, the loan to value ratio, determined by dividing the total fair
value of all debt (excluding debentures) by the sum of investment property and
listed property investments, was 30.9%. The loan to value ratio, using the
nominal value of all debt (excluding debentures) was 34.5%.
98.2% of interest-bearing debt was fixed at a weighted average rate of 9.4% for
a weighted average of 10,0 years, at 30 June 2008.
SEE PRESS FOR GRAPH
Growthpoint has very little exposure to interest rate risk for the next two
years. The current shape of the interest rate swap curve indicates that in
approximately two years time interest rates should be significantly lower than
they are today. Approximately R2,4 billion of interest rate swaps and fixed
interest rate loans are due to expire in 2018. We will continue to monitor our
interest rate risk and at the appropriate time extend the 2018 swaps. Other
than the large exposure in 2018, the risk is well spread from 2011 to 2024.
Growthpoint has entered into two 10-year, forward-starting swaps of R250
million each, with starting dates of 30 September 2008 and 31 December 2008 at
an average fixed rate of 9.7%. As there are no fixed interest rate contracts
expiring in this period, this reflects as R500 million below the line in 2008.
Growthpoint has secured new borrowing facilities of R2 billion for five years
and R1 billion for two years from Nedbank and Standard Bank respectively. At
30 June 2008, Growthpoint had no borrowings from these two banks. These
facilities have been put in place to fund future developments and acquisitions.
Share and debenture capital
The authorised share capital is R75 000 000 divided into one and a half 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.
In November 2007 the company issued 98,3 million new linked units to acquire
the Property Services Businesses. A further 8,5 million new linked units were
also issued in respect of the Staff Incentive Scheme.
On 1 October 2007 the company raised R1,65 billion through the issue of
100,0 million new linked units to the Public Investment Corporation Limited
on behalf of the Government Employees Pension Fund.
Prospects
On a "like-for-like" basis, property net income is expected to grow at
similar levels to the 11.0% experienced in the year ended 30 June 2008.
Although there was some reduction in vacancies in the office portfolio in the
six months ended 31 December 2007, the impact of newly completed developments
that have recently come on stream and others that will be completed in the next
six months is likely to increase vacancies in the office sector in the short
term as these properties may not all be fully let on completion.
Besides the developments, Growthpoint is budgeting to spend R360 million on
capital improvements to properties that will in the medium and longer term
enable us to achieve higher net rentals.
A slow-down in consumer spending has been noted as higher interest rates and
higher inflation levels are impacting on disposable income. The recent power
outages have exacerbated the situation for smaller tenants in particular.
Although bad debts and tenancy failures are expected to increase, this is not
likely to be material to Growthpoint`s results due to the large diversification
among industrial tenants and the high exposure to national tenants and the
dominance of Growthpoint`s regional shopping centres.
Distributions are not expected to grow at the same level that they did in 2008.
However, provided that there is no significant deterioration in economic
conditions, we are anticipating to achieve growth in distribution of
approximately 10% in the next financial year.
This profit forecast has not been reviewed or reported on by Growthpoint`s
auditors.
CHANGES TO THE BOARD
Sam Leon resigned as non-executive director in October 2007 to focus on his
responsibilities as managing director of Investec Property. Sam served on
Growthpoint`s board since 1987 and was instrumental in the "rebirth" of
Growthpoint in 2001 when the first major acquisition from the Mine Pension
Funds was concluded. Sam Hackner resigned from the board in July 2008 after
serving as non-executive director since 1991 and as Chairman since 2004, due
to additional responsibilities and increased workload at Investec Property.
Sam Hackner`s contribution to Growthpoint has been invaluable, in particular
the role he played as mentor to many of the senior executives of Growthpoint.
Francois Marais, former Deputy Chairman was appointed as Chairman in July 2008
and Herman Mashaba was appointed as Deputy Chairman. Estienne de Klerk was
appointed as executive director and Stuart Snowball was appointed as financial
director on 26 August 2008.
SUSTAINABILITY AND EMPOWERMENT
During the year Growthpoint became a founding member and Platinum Sponsor of
the newly established Green Building Council of South Africa. Growthpoint is
represented on the board of this Council, which was established to promote
environmentally sustainable building practices in the South African property
industry in line with best international practice.
Following a rating review carried out by Empowerdex at 30 June 2008,
Growthpoint achieved a Level 2 Contributor or AAA status according to the
Property Sector Transformation Charter targets.
Dividend and interest payment
Notice is hereby given of interim dividend declaration number 44 of 0,055 cents
and debenture interest payment number 44 of 55,345 cents per linked unit
totalling 55,4 cents per linked unit for the year ended 30 June 2008.
Timetable for final distribution:
2008
Last day to trade "cum" the final distribution Friday, 12 September
Linked units commence trading "ex" the final distribution Monday, 15 September
Record date to participate in the final distribution Friday, 19 September
Payment date of the final distribution Monday, 22 September
No dematerialisation or rematerialisation of Growthpoint linked unit
certificates may take place between Monday, 15 September 2008 and Friday, 19
September 2008, both days inclusive.
By order of the Board
Growthpoint Properties Limited
27 August 2008
Directors
JF Marais (Chairman), HSP Mashaba (Deputy Chairman), LN Sasse* (Chief
Executive Officer), EK de Klerk*, MG Diliza, PH Fechter, JC Hayward, HS Herman,
R Moonsamy, BT Ngcuka, SM Snowball*, CG Steyn, JHN Strydom, FJ Visser
* Executive
Growthpoint Properties Limited Registered office
(Incorporated in the Republic of South Africa) The Place, 1 Sandton Drive
(Registration number 1987/004988/06) Sandton, 2196
Share code: GRT PO Box 78949, Sandton, 2146
ISIN ZAE000037669
Transfer secretary Auditors
Computershare Investor Services (Pty) Limited KPMG Inc
(Registration number 2004/003647/07)
Ground Floor, 70 Marshall Street,
Johannesburg, 2001
PO Box 61051, Marshalltown, 2107
Sponsor
Investec Bank Limited
100 Grayston Drive, Sandown
Sandton, 2196
PO Box 78949, Sandton, 2146
Date: 27/08/2008 10:25:57 Supplied by www.sharenet.co.za
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