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GROWTHPOINT PROPERTIES LIMITED - Summary of audited results for the year ended 30 June 2016

Release Date: 01/09/2016 09:00
Code(s): GRT     PDF:  
Wrap Text
Summary of audited results for the year ended 30 June 2016

GROWTHPOINT PROPERTIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1987/004988/06)
A Real Estate Investment Trust, listed on the JSE 
Share code: GRT
ISIN: ZAE000179420

SUMMARY OF AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2016

Highlights

183.8 cents 
6.0% growth 
dividend per share

30.5% LTV 
RSA gearing levels remain conservative, 
decreased from 32.1% in FY15

5.7% vacancies 
same as FY15 
FY16 - strong focus on tenant retention

R112.5 billion 
property assets 

R5.1 billion 
19.8% distributable 
income growth

26.1% 
growth in 
gross revenue 

COMMENTARY
INTRODUCTION
Growthpoint is the largest South African primary listed REIT with a quality portfolio of 467 directly owned properties
in South Africa valued at R73.8 billion, as well as three equity-accounted investments, with our share of properties
valued at R8.2 billion, of which the V&A Waterfront is by far the largest. In addition, Growthpoint owns a 65.5% interest
in Growthpoint Properties Australia (GOZ), which owns 58 properties in Australia valued at R30.9 billion and a listed
investment with a value of R440 million that relates to a 22.9% investment in the Stenham European Shopping Centre Fund
(SESCF), a company listed on the Channel Island Stock Exchange as a closed fund which was acquired as part of the Acucap
Properties Limited (Acucap) and Sycom Property Fund (Sycom) business combination.

The company's objective is to grow and nurture a diversified portfolio of quality investment properties, providing
accommodation to a wide spectrum of users and delivering sustainable income distributions and capital appreciation,
optimised by effective financial structures. Effectively, net property income received by the property portfolios of South
Africa (RSA) and GOZ, including interest received, the distributable income received from the equity-accounted and listed
investments, less operating costs, interest on debt and normal taxation, is distributed to Growthpoint shareholders
bi-annually. Growthpoint's distributions are based on sustainable income generated from rentals.  

Growthpoint is included in the JSE ALSI Top 40 Companies Index, with a market capitalisation of R71.5 billion at 
30 June 2016 (FY16). Over this period, on average, more than 154.6 million shares traded per month (FY15: 119.7 million). 
The monthly average value traded was R3.8 billion (FY15: R3.2 billion). This makes Growthpoint the most liquid and 
tradable way to own commercial property in South Africa. 

Excluding the equity-accounted investments, the South African portfolio represents 70.4% of the property portfolio by
value and 83.1% by gross lettable area (GLA), and is well diversified in the three major sectors of commercial property,
being retail, office and industrial. The bulk of the value of the South African properties is situated in strong
economic nodes within the major metropolitan areas.

For the period under review, net asset value of the Group increased by 4.8% to 2 477 (FY15: 2 364) cents per share.

GROWTH IN DISTRIBUTIONS
Growthpoint delivered growth in distributions per share for FY16 of 6.0% and has declared a final dividend of 
94.3 cents per share for the six months ended 30 June 2016. This growth is at the upper limit of the guidance given 
to the market in the FY15 results of between 5.0% and 6.0%.

In Rand terms, distributions increased by R840 million or 19.8% and was driven by the inclusion of 100% of the former
Acucap and an effective 99.25% of Sycom for the full year under review, while the comparative period included the
distributions of Acucap and Sycom as listed investments held at 34.6% and 15.6% respectively for a period of nine months. 
The distribution growth was well supported by a strong performance from the V&A Waterfront.

The increase in distributions was further enhanced by the investment in GOZ, where a hedging strategy led to
distributions from GOZ being received at an average rate of R10.45:AUD1 compared to R9.92:AUD1 for FY15. 

BASIS OF PREPARATION 
The summarised consolidated financial statements are prepared in accordance with International Financial Reporting
Standards (IFRS), the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee, the JSE Listings
Requirements and the requirements of the South African Companies Act 2008, as amended. The accounting policies applied in
the preparation of these summarised consolidated financial statements are consistent with those applied in the previous
consolidated financial statements.

This summarised consolidated financial statements is extracted from the audited information, but is not itself
audited. The annual financial statements were audited by KPMG Inc., who expressed an unmodified opinion thereon. 
That auditor's report does not necessarily report on all the information contained in this summarised consolidated 
financial statements.

Shareholders are therefore advised that in order to obtain a full understanding of the nature of the auditor's
engagement, they should obtain a copy of the auditor's report together with the accompanying audited consolidated financial
statements, both of which are available for inspection at the company's registered office. The directors of Growthpoint
Properties Limited take full responsibility for the preparation of this report and that the selected financial information
has been correctly extracted from the underlying consolidated financial statements.

Mr G Volkel (CA(SA)), Growthpoint's Financial Director, was responsible for supervising the preparation of these
summarised consolidated financial statements. 

GROWTHPOINT PROPERTIES AUSTRALIA (GOZ) 
The investment in GOZ has been accounted for in terms of IAS 21 The effects of changes in foreign exchange rates. 
The statement of financial position includes 100% of the assets and liabilities of GOZ, converted at the closing exchange
rate at FY16 of R11.04:AUD1 (FY15: R9.40:AUD1). The statement of profit or loss and other comprehensive income also
includes 100% of the revenue and expenses of GOZ, which were translated at an average exchange rate of R10.57:AUD1 
(FY15: R9.55:AUD1) for FY16. The resulting foreign currency translation difference is recognised in other comprehensive 
income. A non-controlling interest was raised for the 34.5% (FY15: 35%) not owned by Growthpoint.

A deferred tax liability of R2.1 billion (FY15: R1.3 billion) is included in the statement of financial position. This
relates to capital gains tax payable in Australia if Growthpoint were to sell its investment in GOZ. Included in normal
tax in the statement of profit or loss and other comprehensive income is R72 million (FY15: R73 million) that relates
to withholding tax paid on the distributions received from GOZ.                                    

V&A WATERFRONT AND OTHER EQUITY-ACCOUNTED INVESTMENTS
The investments in the V&A Waterfront and the other joint ventures have been accounted for in terms of IFRS 11 Joint
arrangements. The equity-accounting method was used, whereby the Group's share of the profit or loss and other
comprehensive income of these investments was accounted for. 

Retail operations at the V&A Waterfront continued to perform well where 22% year-on-year growth in sales was recorded
with contributing factors being the weaker Rand affording tourists the opportunity to spend more, as well as an 
enhanced tenant mix including stores such as H&M, Versace, Hackett and Seafolly. Included in the FY16 finance income 
is R479 million income from the V&A Waterfront, compared to distributable income for FY15 of R368 million. 

NET PROPERTY INCOME
Gross revenue increased by 26.1% for FY16 compared to FY15. The South African operations increased revenues by 
28.7% compared to FY15, as a result of the acquisition of Acucap and Sycom now included for the full year under review. 
In Rand terms the GOZ operations increased revenues by 18.0%. 

The ratio of property expenses to revenue for the Group increased marginally to 21.8% at FY16 from 21.1% at FY15. 
For RSA the ratio increased to 24.6% from 24.0% at FY15. 

Best practice recommendations were issued by the SA REIT Association during the financial year, outlining the need to
provide consistent presentation and disclosure of relevant ratios in the SA REIT sector. This will ensure information
and definitions are clearly presented, enhancing comparability and consistency across the sector. Below are the Group
cost-to-income ratios, set out in terms of the three different definitions to comply with these best practice
recommendations.             
                                                                     2016            2015    
                                                                        %               %    
Property cost-to-income ratios                                                               
Gross cost-to-income ratio                                          31.66           30.23    
Net cost-to-income ratio                                            17.32           16.69    
Cost-to-income ratio based on IFRS reported figures                 21.77           21.06    
Operating cost-to-income ratios                                                              
Gross cost-to-income ratio                                           3.49            4.29    
Net cost-to-income ratio                                             3.15            3.91    
Cost-to-income ratio based on IFRS reported figures                  3.15            3.91    
Total cost-to-income ratios                                                                  
Gross cost-to-income ratio                                          34.61           33.91    
Net cost-to-income ratio                                            20.65           20.82    
Cost-to-income ratio based on IFRS reported figures                 24.93           24.97    

FAIR VALUE ADJUSTMENTS 
The revaluation of properties in South Africa and GOZ resulted in an upward revision of R0.8 billion (0.1%) to 
R104.7 billion for investment property (including investment properties classified as held for sale). Interest-bearing
borrowings and derivatives were fair valued using the swap curve at FY16, resulting in an increase of R159 million in 
the overall liability. In addition, losses of R136 million and R113 million were realised on the settlement of an 
interest rate swap by the South African operations and GOZ respectively. 

These fair value adjustments, together with the other non-distributable items such as capital items, non-cash charges,
deferred taxation and the net effect of the non-controlling interest's portion of the non-distributable items, were
transferred to the non-distributable reserve. 

FINANCE COSTS
Finance costs increased by 18.2% to R2 466 million (FY15: R2 086 million) as a result of the acquisition of Acucap and
Sycom. These outflows were somewhat negated by the proceeds from the Distribution Re-Investment Plans (DRIPs) offered
by Growthpoint. The weighted average interest rate for RSA borrowings was 9.3% (8.5% including CCIRS) (FY15: 8.9%). 
The weighted average maturity of debt increased to 3.0 years (FY15: 2.9 years). Finance costs for GOZ increased by 
12.8% from R423 million in FY15 to R477 million in FY16. The interest cover ratio, whereby the income from the 
equity-accounted investments and listed investments are included in the operating profit, decreased to 3.3 times 
at FY16 (FY15: 3.4 times).

FINANCE INCOME
Finance income decreased by 24.7% to R690 million (FY15: R916 million). In the prior year distributions received from
the listed investment in Acucap and Sycom were accounted for in finance income, but it is consolidated in the current
year as a result of the business combination (FY15: R345 million).

ACQUISITIONS AND COMMITMENTS 
Growthpoint acquired four industrial properties for R442 million and four office properties for R220 million during
the period. Development and capital expenditure for RSA amounting to R2.4 billion (FY15: R1.9 billion) relates to 
various projects undertaken during the period, of which the Discovery Head Office accounted for R497 million.

Growthpoint RSA has commitments in respect of developments amounting to R1.7 billion (FY15: R2.7 billion), of which
the Discovery Head Office (55% share) of R1.1 billion is the largest and also includes Vaal Mall at R124 million and
Greenacres phases 2 and 3 at R218 million. Further commitments in respect of property acquisitions amount to R50.7 million
(FY15: R531 million).

GOZ acquired two industrial properties for R412 million (AUD43.8 million) and three office properties for R3.0 billion
(AUD270.5 million) and incurred development expenditure amounting to R361 million (AUD33.1 million) in respect of 
office property development situated at 211 Wellington Road, Mulgrave, Victoria, and 1 Charles Street, as well as an
industrial property development situated at 99 and 101 - 103 William Angliss Drive. Other development and capital 
expenditure for GOZ amounting to R80 million (AUD7.4 million) relates to various projects undertaken during the period. 
GOZ has commitments of R497 million (AUD45.0 million) which includes a commitment to fund the development of 
211 Wellington Road for an amount of R331.1 million (AUD30.0 million).  

Development and capital expenditure at the V&A Waterfront amounted to R420 million (FY15: R309 million) for the
period. Growthpoint's share of the V&A Waterfront's commitments outstanding at FY16 amounted to R483 million 
(FY15: R475 million), which relate to The Canal District, Silo Number 6 (Raddison Red Hotel) and Silo Number 3 
(Residential for sale).

ACQUISITION OF REMAINING 50% IN PIN MILL SHARE BLOCK (PTY) LTD (PIN MILL)
Growthpoint acquired the remaining 50% of the shares in Pin Mill Share Block (Pty) Ltd that it did not already own from
MMI Group Limited for R172.1 million, effective from 1 February 2016. This is in line with Growthpoint's stated
objective of defensively growing its property portfolio through the acquisition of complementary and quality enhancing assets.

A summary of the acquisition is set out in the table below:            
                                                                                                      
                                                                              2016            2015    
                                                                                Rm              Rm    
The fair value of the assets and liabilities acquired were as follows:                                
Investment property                                                            356               -    
Net working capital                                                              -               -    
Net asset value                                                                356               -    
Consideration financed by borrowings                                          (172)              -    
Fair value of the previously held investment in Pin Mill Share Block            178               -    
Gain from bargain purchase                                                       6               -    
Net cash outflow                                                               172               -    

DISPOSALS AND HELD-FOR-SALE ASSETS
Growthpoint RSA disposed of sixteen properties in the current period (FY15: eighteen) for R1.1 billion 
(FY15: R621 million) with a collective R220 million (FY15: R205 million) profit on cost achieved.

At FY16, six RSA properties (FY15: five) valued at R264 million (FY15: R539 million) and five Australian 
properties valued at R1.7 billion, were classified as held-for-sale assets.

ARREARS
Total RSA arrears at FY16 amounted to R64.0 million (FY15: R63.7 million) with a provision for bad debts of 
R29.8 million (FY15: R25.9 million). Total RSA bad debt expenses amounted to R15.9 million (FY15: R15.1 million). 

VACANCY LEVELS 
At FY16, the total square metres of Growthpoint's portfolio and vacancy levels expressed as a percentage of GLA were: 
                                     GLA                        Vacancy              
                                 m2             m2             %         %    
                               FY16           FY15          FY16      FY15    
                                                                              
Retail                    1 420 570      1 410 461           2.6       3.3    
Office                    1 799 391      1 790 428           7.8       8.0    
Industrial                2 251 089      2 225 075           6.0       5.3    
RSA total                 5 471 050      5 425 964           5.7       5.7    
V&A Waterfront (50%)        206 838        202 658           1.4       2.6    
GOZ                       1 109 545      1 050 611           0.3       1.0    
Total/average %           6 787 433      6 679 233           4.7       4.8    

Vacancies have decreased across the retail and office sectors in RSA, while the industrial sector had an increase in
vacancies as a result of a few large facilities becoming vacant. Plans are afoot with three of these large facilities,
either being let or disposed of. Tenant retention remains a priority and is being facilitated through various initiatives
including the UNdeposit and SmartMove campaigns. 

EQUITY RAISED 
During the year, Growthpoint issued 75.0 million shares and raised R1.8 billion. Details thereof are as follows: 

In September 2015 R482.7 million and in April 2016 R1.2 billion was raised through the DRIP programmes, where 
19.3 million and 52.3 million shares were issued at R25.00 and R23.50 per share respectively. The equity raised 
from the DRIP was utilised to finance Growthpoint's investment activities. 

Growthpoint issued 1.1 million shares for the acquisition of Silverhorn Properties (Pty) Ltd and Basfour 2721 (Pty)
Ltd, and 2.4 million shares for the fulfilment of the scheme of arrangement by which the remaining issued units of 
Sycom Property Fund were acquired.

The company has 2.8 billion shares in issue at FY16 and the authorised capital is 4.0 billion shares. Growthpoint held
28 529 523 treasury shares at FY16 (FY15: 30 631 827).

BORROWINGS AND NET WORKING CAPITAL
At FY16, the consolidated loan to value (LTV) ratio, measured by dividing the nominal value of interest-bearing
borrowings (net of cash) by the fair value of property assets, including investment property held for sale, plus the
equity-accounted investments and the listed investments, was 33.7% (FY15: 33.2%). The higher LTV ratio relates directly 
to the higher LTV ratio of GOZ. Growthpoint has consistently applied its policy on fair value measurement in respect 
of long-term interest-bearing loans and derivatives and there has been no change in valuation techniques, nor have 
there been any transfers between level 1, level 2 and level 3 during the period under review. 

Growthpoint has unutilised committed bank facilities in RSA amounting to R5.9 billion and in Australia R4.3 billion
(AUD373 million) at FY16 which provides assurance that it will be able to meet its short-term commitments which exceeded
current assets by R1.4 billion at FY16 (FY15: R4.7 billion). 

CHANGE IN DIRECTORATE 
Mr Herman Mashaba resigned on 27 January 2016 as a non-executive director and Deputy Chairman of Growthpoint. 

EVENTS AFTER THE REPORTING PERIOD 
Takeover offer for GPT Metro Office Fund (GMF)
On 1 July 2016, GOZ announced a AUD321 million off-market takeover offer for ASX listed GMF. GMF owns six assets
valued at AUD440.3 million. As at 24 August 2016, GOZ's holding in GMF increased to 48.53%. The incremental 
interest does not become unconditional until at least 50.1% interest is achieved. It is expected that the 
takeover will be complete in FY17.

As well as adding six well-leased A-grade office properties to the GOZ portfolio, the GMF takeover is expected to
increase GOZ's FY17 distributable income guidance by 4.9%, its market capitalisation to over AUD2.1 billion and the
liquidity of GOZ's securities.            

GOZ investment property classified as held for sale
An industrial property portfolio comprising five properties was being sold pursuant to an expression of interest
process that closed on 15 June 2016. A joint bid to purchase the portfolio was received from Investec and Sentinel 
Property Group and as at 30 June 2016, the properties were classified as an asset held for sale.  Subsequent to year end, 
the parties went into exclusive due diligence, however, Sentinel withdrew. Negotiations with Investec has also since ceased.
Management and the directors determined that the portfolio will no longer be on the market and will be reclassified to
investment properties. Given this is an event after the reporting period, the decision to reclassify the asset to investment
properties has no impact on the financial statements as at 30 June 2016.

PROSPECTS 
The low growth and high interest rate environment in South Africa is expected to remain for FY17. While the portfolio
dynamics are stable, there is limited opportunity for growth locally. We expect the V&A Waterfront to continue to
perform well, given the strong property fundamentals, weak Rand and the conversion of the significant development 
pipeline into income generating investments. The GOZ property fundamentals remain intact and GOZ performance for 
FY17 is expected to be in line with that of FY16. Growthpoint thus expects dividend growth for FY17 to be similar 
to that achieved for FY16.  

This forecast has not been subject to audit or review by the company's independent external auditors.

FINAL DIVIDEND WITH THE ELECTION TO RE-INVEST THE CASH DIVIDEND IN RETURN FOR GROWTHPOINT SHARES
Notice is hereby given of the declaration of the final dividend number 61 of 94.30000 cents per share for the period
ended 30 June 2016.

Shareholders will be entitled to elect to re-invest the net cash dividend, in return for Growthpoint shares (share
alternative), failing which they will receive the net cash dividend in respect of all or part of their shareholdings. 
The entitlement of shareholders to elect to participate in the share re-investment alternative is subject to the Board,
either itself or through a Board sub-committee appointed to set the pricing and terms of the share re-investment 
alternative, having the discretion to withdraw the entitlement to elect the share re-investment alternative should 
market conditions warrant such action. A withdrawal of the entitlement to elect the share re-investment alternative 
will be communicated to shareholders before the publication of the finalisation announcement on 
Tuesday, 13 September 2016.

Other information: 
- issued shares at 30 June 2016: 2 786 093 366 ordinary shares of no par value.
- Income Tax Reference Number of Growthpoint: 9375/077/71/7. 

In accordance with Growthpoint's status as a Real Estate Investment Trust (REIT) with effect from 1 July 2013,
shareholders are advised that the dividend meets the requirements of a "qualifying distribution" for the purposes of 
section 25BB of the Income Tax Act, No 58 of 1962 (Income Tax Act). The dividends on the shares will be deemed to 
be taxable dividends for South African tax purposes in terms of section 25BB of the Income Tax Act. 

TAX IMPLICATIONS FOR SOUTH AFRICAN RESIDENT SHAREHOLDERS
Dividends received by or accrued to South African tax residents must be included in the gross income of such
shareholders and will not be exempt from income tax in terms of the exclusion to the general dividend exemption contained 
in section 10(1)(k)(i)(aa) of the Income Tax Act, because they are dividends distributed by a REIT. These dividends are,
however, exempt from dividend withholding tax (dividend tax) in the hands of South African resident shareholders provided 
that the South African resident shareholders have provided to the Central Securities Depository Participant (CSDP) or
broker, as the case may be, in respect of uncertificated shares, or the company, in respect of certificated shares, a 
DTD (EX) (dividend tax: declaration and undertaking to be made by the beneficial owner of a share) form to prove their 
status as South African residents.

If resident shareholders have not submitted the above mentioned documentation to confirm their status as South African
residents, they are advised to contact their CSDP or broker, as the case may be, to arrange for the documents to be
submitted prior to the payment of the dividend. 

TAX IMPLICATIONS FOR NON-RESIDENT SHAREHOLDERS
Dividends received by non-resident shareholders from a REIT will not be taxable as income and instead will be treated
as ordinary dividends which are exempt from income tax in terms of the general dividend exemption section 10(1)(k) of
the Income Tax Act. With effect from 1 January 2014, any dividend received by a non-resident from a REIT is subject to
dividend tax at 15%, unless the rate is reduced in terms of any applicable agreement for the avoidance of double taxation
(DTA) between South Africa and the country of residence of the non-resident shareholder. Assuming dividend tax will be
withheld at a rate of 15%, the net amount due to non-resident shareholders is 80.15500 cents per share. A reduced dividend
withholding tax rate in terms of the applicable DTA may only be relied on if the non-resident shareholder has provided
the following forms to their CSDP or broker, as the case may be, in respect of uncertificated shares, or the company, in
respect of certificated shares:
- a declaration that the dividend is subject to a reduced rate as a result of the application of the DTA; and
- a written undertaking to inform the CSDP, broker or the company, as the case may be, should the circumstances
affecting the reduced rate change or the beneficial owner cease to be the beneficial owner, both in the form prescribed 
by the Commissioner of the South African Revenue Service. 

If applicable, non-resident shareholders are advised to contact the CSDP, broker or the company, as the case may be,
to arrange for the above mentioned documents to be submitted prior to payment of the dividend if such documents have not
already been submitted. 

Summary of the salient dates relating to the cash dividend and share alternative are as follows:
                                                                                                 2016
Circular and form of election posted to shareholders                             Tuesday, 6 September    
Last date for Growthpoint to withdraw the entitlement 
for shareholders to elect to participate in the share re-investment 
alternative before the publication of the announcement of the 
share alternative issue price and finalisation information on SENS               Monday, 12 September    
Announcement of share alternative issue price and 
finalisation information                                                        Tuesday, 13 September    
Last day to trade (LDT) cum dividend                                            Tuesday, 20 September    
Shares to trade ex dividend                                                   Wednesday, 21 September    
Listing of maximum possible number of share alternative 
shares commences on the JSE                                                      Friday, 23 September    
Last day to elect to receive the share alternative (forms of election 
will not be accepted after 12:00 South African time)                             Friday, 23 September    
Record date                                                                      Friday, 23 September    
Announcement of results of cash dividend and share 
alternative released on SENS                                                     Monday, 26 September    
Cheques posted to certificated shareholders and accounts 
credited by CSDP or broker to dematerialised shareholders 
electing the cash alternative, on or about                                       Monday, 26 September    
Share certificates posted to certificated shareholders and 
accounts credited by CSDP or broker to dematerialised 
shareholders electing the share alternative, on or about                      Wednesday, 28 September    
Adjustment to shares listed, on or about                                       Thursday, 29 September    

Notes:
1. Shareholders electing the share alternative are alerted to the fact that the new shares will be listed on 
   LDT + 3 and that these new shares can only be traded on LDT + 3, due to the fact that settlement of the 
   shares will be three days after record date, which differs from the conventional one day after record date 
   settlement process.
2. Shares may not be dematerialised or rematerialised between Wednesday, 21 September 2016 and close of trade 
   on Friday, 23 September 2016.
3. The above dates and times are subject to change. Any changes will be released on SENS and published in the press.
4. The cash dividend or share alternative may have tax implications for resident and non-resident shareholders.
   Shareholders are therefore encouraged to consult their professional advisers should they be in any doubt as to 
   the appropriate action to take.

By order of the Board 
GROWTHPOINT PROPERTIES LIMITED
31 August 2016


STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the year ended 30 June 2016
                                                                           30 June            30 June    
                                                                              2016               2015     
                                                           Note                 Rm                 Rm    
Revenue, excluding straight-line lease income adjustment                     9 764              7 740    
Straight-line lease income adjustment                                          455                130    
Revenue                                                                     10 219              7 870    
Property expenses                                                           (2 126)            (1 630)   
Net property income                                                          8 093              6 240    
Other operating expenses and income                                           (308)              (303)   
Operating profit                                                             7 785              5 937    
Fair value adjustments                                                         409              3 562    
Equity-accounted investment earnings - net of tax                              543                484    
Finance costs                                                               (2 466)            (2 086)   
Non-cash charges                                                              (121)            (1 723)   
Capital items                                                                  (32)             1 078    
Finance and other investment income                           1                690                916    
Profit before taxation                                                       6 808              8 168    
Taxation                                                                      (841)              (264)   
Normal taxation (including withholding tax on                                        
GOZ distribution)                                                              (76)               (72)   
Deferred taxation                                                             (765)              (192)   
Profit after taxation                                                        5 967              7 904    
Profit attributable to:                                                                                  
Equity holders                                                               5 159              6 955    
Non-controlling interest (NCI)                                                 808                949    
Other comprehensive income:                                                                              
Items that are or may be reclassified to profit or loss:                                                 
Translation of foreign operations                                            2 282               (703)   
Fair value of listed investments                                                 -              1 143    
Fair value of listed investments - reclassified                                      
to profit or loss                                                                -             (1 097)   
Total comprehensive income                                                   8 249              7 247    
Attributable to:                                                                                         
Equity holders                                                               6 653              6 548    
Non-controlling interest                                                     1 596                699    
Calculation of distributable earnings                                                                    
Operating profit                                                             7 785              5 937    
Less: Straight-line lease income adjustment                                   (455)              (130)   
Finance costs                                                               (2 466)            (2 086)   
Finance and other investment income                                            690                916    
Cash adjustment on business combination (accounted                                   
for in statement of changes in equity)                                           -                  4    
Dividends received on treasury shares (accounted                                     
for in statement of changes in equity)                                          39                 66    
NCI's share of distribution (excluding                                               
fair value adjustments)                                                       (439)              (374)   
Distributable income from GOZ retained (including NCI)                         (79)               (74)   
Realised foreign exchange (loss)/gain                                           (9)                45    
Profit on the sale of Roeland Street Investment                                      
(Pty) Ltd (Stor-Age)                                                            51                  -    
Antecedent dividend received                                                    31                  -    
Taxation (excluding deferred taxation)                                         (76)               (72)   
Distributable earnings                                                       5 072              4 232    
Total dividend                                                2              5 072              4 232    
Taxable dividend (interim)                                                   2 444              1 967    
Taxable dividend (special interim)                                               -              1 058    
Taxable dividend (final)                                                     2 628              1 207    
                                                                            Shares             Shares    
Total shares in issue at the end of year                             2 786 093 366      2 711 056 264    
Treasury shares                                                        (28 529 523)       (30 631 827)   
Total shares in issue at the end of year                                             
(excluding treasury shares)                                          2 757 563 843      2 680 424 437    
Weighted average number of shares in issue                           2 711 111 433      2 359 724 314    
                                                                             Cents              Cents    
Dividend per share                                                           183.8              173.4    
Six months ended 31 December                                                  89.5               84.4    
Three months ended 31 March                                                      -               44.5    
Six months (FY15: three months) ended 30 June                                 94.3               44.5    
Basic earnings per share                                      3             190.29             294.74    
Diluted earnings per share                                    3             189.53             292.68    
Headline earnings per share                                   4             140.57             149.42    
Diluted headline earnings per share                                         140.01             148.38    

STATEMENT OF FINANCIAL POSITION
As at 30 June 2016
                                                              30 June         30 June    
                                                                 2016            2015     
                                                                   Rm              Rm    
ASSETS                                                                                   
Non-current assets                                            113 176         103 187    
Fair value of investment property for                  
accounting purposes                                           100 274          90 917    
Straight-line lease income adjustment                           2 478           2 118    
Fair value of property assets                                 102 752          93 035    
Equity-accounted investments                                    6 821           6 464    
Listed investments                                                440             380    
Intangible assets                                               2 461           2 580    
Equipment                                                           6               9    
Long-term loans granted                                           589             614    
Derivative assets                                                 107             105    
Current assets                                                  5 351           3 216    
Investment property classified as held for sale                 1 938             539    
Current portion of long-term loans granted                         16             467    
Trade and other receivables                                     2 496           1 705    
Cash and cash equivalents                                         901             505    
Total assets                                                  118 527         106 403    

EQUITY AND LIABILITIES                                                                   
Shareholders' interest                                         68 295          63 369    
Share capital                                                  42 929          41 132    
Treasury shares                                                  (600)           (646)   
Foreign currency translation reserve                            2 602           1 072    
Non-distributable reserve                                      20 736          20 604    
Retained income                                                 2 628           1 207    
Non-controlling interest                                        5 871           4 713    
Total equity                                                   74 166          68 082    
Non-current liabilities                                        37 565          30 372    
Interest-bearing borrowings                                    34 089          27 979    
Derivative liabilities                                          1 094             776    
Deferred taxation liability                                     2 382           1 617    
Current liabilities                                             6 796           7 949    
Trade and other payables                                        2 045           1 802    
Current portion of non-current financial liabilities            4 491           5 930    
Taxation payable                                                   29              31    
Linked unitholders for distribution                               231             186    
                                                                                         
Total equity and liabilities                                  118 527         106 403    
                                                                Cents           Cents    
Net asset value per share                                       2 477           2 364    
Tangible net asset value per share which excludes      
intangible assets and the deferred taxation liability           2 474           2 328    

STATEMENT OF CASH FLOWS
For the year ended 30 June 2016
                                                              30 June             30 June    
                                                                 2016                2015     
                                                                   Rm                  Rm    
Cash generated from operations                                  7 322               5 911    
Finance and other investment income                                51                 497    
Finance costs                                                  (2 538)             (2 055)   
Taxation paid                                                     (78)                (54)   
Capital items                                                     (32)                (38)   
Distribution to shareholders/unitholders                       (4 073)             (5 618)   
Net cash inflow/(outflow) from operating activities               652              (1 357)   
Net cash outflow from investing activities                     (5 259)             (2 283)   
Net cash inflow from financing activities                       4 948               3 781    
Net increase in cash and cash equivalents                         341                 141    
Translation effects on cash and cash                                       
equivalents of foreign operation                                   55                 (11)   
Cash and cash equivalents at beginning of year                    505                 375    
Cash and cash equivalents at end of year                          901                 505    

STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2016                                                                            
                                                                                   Foreign                      
                                                                                  currency               Non-      
                                                                               translation      distributable   
                                                      Share      Treasury          reserve            reserve         
                                                    capital        shares           (FCTR)              (NDR)   
                                         Note            Rm            Rm               Rm                 Rm     
                                                                                                                
Balance at 30 June 2014                              29 436          (682)           1 506             17 743   
Total comprehensive income -                                                                                    
profit after taxation                                     -             -                -                  -   
Total comprehensive income -                                                                                    
other comprehensive income                                -             -             (453)                46   
Transactions with owners recognised                                                                             
directly in equity:                                                                                             
Contribution by and distributions                                                                               
to owners                                                                                                       
Shares issued                                        11 696             -                -                  -   
Acquisition of subsidiary with NCI                        -             -                -                  -   
Cash adjustment on business              
combination                                               -             -                -                  -   
Dividends received on                    
treasury shares                                           -             -                -                  -   
Transfer non-distributable               
items to NDR                                              -             -                -              2 790   
Share-based payment transactions                          -            36                -                 72   
Transfer to NDR reserves with NCI                         -             -                -                (47)  
Dividends declared - NCI                                  -             -                -                  -   
Dividends declared                                        -             -                -                  -   
Changes in ownership interests                                                                                  
Rights issue and                         
acquisitions - GOZ                                        -             -               19                  -   
Balance at 30 June 2015                              41 132          (646)           1 072             20 604   
Total comprehensive income -                                                                                    
profit after taxation                                     -             -                -                  -   
Total comprehensive income -                                                                                    
other comprehensive income                                -             -            1 494                  -   
Transactions with owners                 
recognised                                                                                                      
directly in equity:                                                                                             
Contribution by and distributions                                                                               
to owners                                                                                                       
Shares issued                                         1 797             -                -                  -   
Dividends received on                    
treasury shares                             2             -             -                -                  -   
Transfer non-distributable               
items to NDR                                              -             -                -                150   
Share-based payment transactions                          -            46                -                  7   
Transfer to NDR reserves with NCI                         -             -                -                (25)  
Dividends declared - NCI                                  -             -                -                  -   
Dividends declared                          2             -             -                -                  -   
Changes in ownership interests                                                                                  
Rights issue and                         
acquisitions - GOZ                                        -             -               36                  -   
Acquisition of NCI - Sycom                                -             -                -                  -   
Balance at 30 June 2016                              42 929          (600)           2 602             20 736   

STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2016 continued
                                                              
                                                                        Non-                      
                                      Retained        Share-     controlling    
                                        income       holders'       interest         Total                      
                                          (RI)       interest          (NCI)        equity
                                            Rm             Rm             Rm            Rm       
                                                                                              
Balance at 30 June 2014                  1 892         49 895          4 180        54 075    
Total comprehensive income -                                  
profit after taxation                    6 955          6 955            949         7 904    
Total comprehensive income -                                  
other comprehensive income                   -           (407)          (250)         (657)   
Transactions with owners recognised                           
directly in equity:                                           
Contribution by and distributions                             
to owners                                                     
Shares issued                                -         11 696              -        11 696    
Acquisition of subsidiary with NCI           -              -             64            64    
Cash adjustment on business         
combination                                  4              4              -             4    
Dividends received on               
treasury shares                             66             66              -            66    
Transfer non-distributable          
items to NDR                            (2 790)             -              -             -    
Share-based payment transactions             -            108              -           108    
Transfer to NDR reserves with NCI           47              -              -             -    
Dividends declared - NCI                     -              -           (374)         (374)   
Dividends declared                      (4 920)        (4 920)             -        (4 920)   
Changes in ownership interests                                                                
Rights issue and                    
acquisitions - GOZ                         (47)           (28)           144           116    
Balance at 30 June 2015                  1 207         63 369          4 713        68 082    
Total comprehensive income -                                  
profit after taxation                    5 159          5 159            808         5 967    
Total comprehensive income -                                  
other comprehensive income                   -          1 494            788         2 282    
Transactions with owners            
recognised                           
directly in equity:                                           
Contribution by and distributions                             
to owners                                                     
Shares issued                                -          1 797              -         1 797    
Dividends received on               
treasury shares                             39             39              -            39    
Transfer non-distributable          
items to NDR                              (150)             -              -             -    
Share-based payment transactions             -             53              -            53    
Transfer to NDR reserves with NCI           25              -              -             -    
Dividends declared - NCI                     -              -           (439)         (439)   
Dividends declared                      (3 652)        (3 652)             -        (3 652)   
Changes in ownership interests                                                                
Rights issue and                    
acquisitions - GOZ                           -             36             66           102    
Acquisition of NCI - Sycom                   -              -            (65)          (65)   
Balance at 30 June 2016                  2 628         68 295          5 871        74 166    


SEGMENTAL ANALYSIS
For the year ended 30 June 2016
                                                   South Africa
                                                                       Total   
                                                                       South                 Total as           V&A    Other joint           
                                   Retail    Office    Industrial     Africa    Australia    reported    Waterfront       ventures      Total      
                                       Rm        Rm            Rm         Rm           Rm          Rm            Rm             Rm         Rm 
Statement of profit or loss 
and other comprehensive income 
extracts - 30 June 2016                                                                           
Revenue, excluding straight-line 
lease income adjustment             2 953     3 428         1 208      7 589        2 175       9 764           639              8     10 411    
Property expenses                    (814)     (794)         (256)    (1 864)        (262)     (2 126)         (177)            (4)    (2 307)   
Segment results                     2 139     2 634           952      5 725        1 913       7 638           462              4      8 104    
Material non-cash item                                                                                                                           
Fair value adjustment on 
investment property                   448      (457)          106         97          730         827           585             (7)     1 405    
Fair value adjustment on 
investment property - NCI               -         -             -          -          385         385             -              -        385    
Total material non-cash item          448      (457)          106         97        1 115       1 212           585             (7)     1 790    
                                                                                                                 
                                             South                       Total as              V&A       Other joint              
                                            Africa       Australia       reported       Waterfront          ventures         Total     
                                                Rm              Rm             Rm               Rm                Rm            Rm    
Further extracts of statement 
of profit or loss and other 
comprehensive income - 30 June 2016                                                    
Other operating expenses and income           (204)           (104)          (308)             (20)                -          (328)   
Finance costs                               (1 989)           (477)        (2 466)             (30)               (8)       (2 504)   
Finance and other investment income            684               6            690               69                 -           759    

                                                 South Africa
                                                                       Total 
                                                                       South                 Total as           V&A    Other joint         
                                   Retail    Office    Industrial     Africa    Australia    reported    Waterfront       ventures       Total      
                                       Rm        Rm            Rm         Rm           Rm          Rm            Rm             Rm          Rm    
Statement of financial                                                                                                              
position extracts at                                                                                                                
30 June 2016                                                                                                                        
Investment property                                                                                                                 
Opening balance 1 July 2015        28 213    32 901        10 436     71 550       22 024      93 574         6 761            631     100 966    
Acquisitions - business                                                                                                             
combination                             -       178             -        178            -         178             -              -         178    
Acquisitions - other                    -       220           442        662        3 410       4 072             -              -       4 072    
Developments and                                                                                                                    
capital expenditure                   549     1 302           543      2 394          441       2 835           420             27       3 282    
Disposals                               -      (887)         (242)    (1 129)           -      (1 129)            -           (240)     (1 369)   
Foreign exchange gain                   -         -             -          -        3 948       3 948             -              -       3 948    
Fair value adjustments                448      (457)          106         97        1 115       1 212           585             (7)      1 790    
Fair value of total property                                                                                                        
assets - 30 June 2016              29 210    33 257        11 285     73 752       30 938     104 690         7 766            411     112 867    
Fair value of long-term                                                                                                             
property assets                    29 210    33 112        11 166     73 488       29 264     102 752         7 766            411     110 929    
Investment property classified                                                                                                      
as held for sale                        -       145           119        264        1 674       1 938             -              -       1 938    
                                                                                                                                    
                                             South                       Total as              V&A       Other joint              
                                            Africa       Australia       reported       Waterfront          ventures         Total     
                                                Rm              Rm             Rm               Rm                Rm            Rm                   
Further extracts of statement 
of financial position - 30 June 2016                                                                    
Intangible assets                            2 461               -          2 461                -                 -         2 461    
Listed investments                             440               -            440                -                 -           440    
Trade and other receivables                  2 008             488          2 496               48                 -         2 544    
Cash and cash equivalents                      121             780            901               28                 5           934    
Trade and other payables                    (1 606)           (439)        (2 045)             (84)               (3)       (2 132)   
Financial liabilities                      (25 704)        (13 970)       (39 674)            (306)             (404)      (40 384)   
Nominal value -                         
interest-bearing liabilities               (24 818)        (13 760)       (38 578)            (306)             (404)      (39 288)   
Fair value adjustments                        (880)           (210)        (1 090)               -                 -        (1 090)   
Foreign translation differences                 (6)              -             (6)               -                 -            (6)   

                                                 South Africa 
                                                                       Total
                                                                       South                 Total as           V&A    Other joint        
                                   Retail    Office    Industrial     Africa    Australia    reported    Waterfront       ventures      Total      
                                       Rm        Rm            Rm         Rm           Rm          Rm            Rm             Rm         Rm                  
Statement of profit or                                                                                                              
loss and other comprehensive                                                                                                        
income extracts - 30 June 2015                                                                                                      
Revenue, excluding                                                                                                                  
straight-line lease income                                                                                                          
adjustment                          1 995     2 752         1 149      5 896        1 844       7 740           553             19      8 312    
Property expenses                    (525)     (635)         (257)    (1 417)        (213)     (1 630)         (154)            (5)    (1 789)   
Segment results                     1 470     2 117           892      4 479        1 631       6 110           399             14      6 523    
Material non-cash item                                                                                                                           
Fair value adjustment on                                                                                                            
investment property                   896       772           202      1 870        1 077       2 947           480             19      3 446    
Fair value adjustment on                                                                                                            
investment property - NCI               -         -             -          -          587         587             -              -        587    
Impairment of goodwill               (949)     (569)          (40)    (1 558)           -      (1 558)            -              -     (1 558)   
Total material non-cash items         (53)      203           162        312        1 664       1 976           480             19      2 475    
                                                                                                                                                                                                                                  
                                             South                       Total as              V&A       Other joint              
                                            Africa       Australia       reported       Waterfront          ventures         Total     
                                                Rm              Rm             Rm               Rm                Rm            Rm   
Further extracts of statement 
of profit or loss and other 
comprehensive income - 30 June 2015                                                    
Other operating expenses and income           (222)            (81)          (303)             (16)               (3)         (322)   
Finance costs                               (1 663)           (423)        (2 086)             (28)              (11)       (2 125)   
Finance and other investment income            909               7            916                8                 -           924    
                                                                                                                                       
                                                 South Africa
                                                                       Total 
                                                                       South                 Total as           V&A    Other joint        
                                   Retail    Office    Industrial     Africa    Australia    reported    Waterfront       ventures      Total      
                                       Rm        Rm            Rm         Rm           Rm          Rm            Rm             Rm         Rm   
Statement of financial position                                                                                                     
extracts at 30 June 2015                                                                                                            
Investment property                                                                                                                                         
Opening balance 1 July 2014        15 756    24 012         9 286     40 054       20 859      69 913         5 947            315     76 175    
Acquisition - Acucap and Sycom     11 324     6 789           473     18 586            -      18 586             -            569     19 155    
Acquisition - Other                     -       755            21        776          637       1 413            25              -      1 438    
Developments and capital                                                                                                            
expenditure                           352     1 003           530      1 885          306       2 191           309              -      2 500    
Disposals                            (115)     (430)          (76)      (621)        (237)       (858)            -           (272)    (1 130)   
Foreign exchange loss                   -         -             -          -       (1 205)     (1 205)            -              -     (1 205)   
Fair value adjustments                896       772           202      1 870        1 664       3 534           480             19      4 033    
Fair value of total property                                                                                                        
assets - 30 June 2015              28 213    32 901        10 436     71 550       22 024      93 574         6 761            631    100 966    
Fair value of long-term                                                                                                             
property assets                    28 213    32 432        10 366     71 011       22 024      93 035         6 761            631    100 427    
Investment property classified                                                                                                      
as held for sale                        -       469            70        539            -         539             -              -        539    
                                                                                                    
                                             South                       Total as              V&A       Other joint              
                                            Africa       Australia       reported       Waterfront          ventures         Total     
                                                Rm              Rm             Rm               Rm                Rm            Rm     
Further extracts of statement 
of financial position - 30 June 2015                                                                    
Intangible assets                            2 580               -          2 580                -                 -         2 580    
Opening balance 1 July 2014                  1 258               -          1 258                -                 -         1 258    
Acquisition through                  
business combination                         2 978               -          2 978                -                 -         2 978    
Impairment of goodwill                      (1 558)              -         (1 558)               -                 -        (1 558)   
Additions during the year                        4               -              4                -                 -             4    
Amortisation for the year                     (102)              -           (102)               -                 -          (102)   
Listed investments                             380               -            380                -                 -           380    
Trade and other receivables                  1 353             352          1 705               23                 -         1 728    
Cash and cash equivalents                      253             252            505              129                 3           637    
Trade and other payables                    (1 514)           (288)        (1 802)            (102)              (10)       (1 914)   
Financial liabilities                      (26 130)         (8 555)       (34 685)            (197)             (502)      (35 384)   
Nominal value - interest-bearing     
liabilities                                (25 444)         (8 367)       (33 811)            (197)             (502)      (34 510)   
Fair value adjustments                        (686)           (131)          (817)               -                 -          (817)   
Foreign translation differences                  -             (57)           (57)               -                 -           (57)   
                                                                
NOTES
For the year ended 30 June 2016
                                                       30 June            30 June    
                                                          2016               2015     
                                                            Rm                 Rm    
Note 1: Finance and other investment income                690                916    
- Investment in joint venture - V&A Waterfront             429                368    
- V&A Waterfront development funding interest               50                  -    
Total V&A Waterfront income                                479                368    
Other finance income                                       189                203    
Listed investments                                          22                345    
                                                                                     
Note 2: Dividends on treasury shares                                                                                         
The interim dividend of R2 444 million (HY15: R1 967 million) included dividends on treasury shares of R13 million (HY15: R26 million). 
The net interim dividend paid by Growthpoint for accounting purposes is R2 431 million (HY15: R1 941 million).                                      

The total dividend of R5 072 million (FY15: R4 232 million) includes dividends on treasury shares of R39 million (FY15: R53 million).
The net total dividend paid and payable is therefore R5 033 million (FY15: R4 179 million).                                      

Note 3: Basic and diluted earnings per share                                                                                   
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 Limited Listings Requirements, is not meaningful to investors as the basic profit includes fair value adjustments, 
as well as other non-distributable items.                                      

The calculation of distributable earnings and the dividend per share is more meaningful.                                       

Note 4: Headline earnings per share                                                                                            
In terms of Circular 2/2015, issued by SAICA, the fair value adjustment on investment property is added back in the calculation of 
headline earnings per share. The Circular does not make provision for the fair value adjustment on non-current financial 
liabilities, accounting adjustments required to account for lease income on a straight-line basis, as well as other non-cash 
fair value accounting adjustments that do not affect distributable earnings, to be added back.
                                      
                                                       30 June            30 June    
                                                          2016               2015     
                                                            Rm                 Rm    
                                                                                     
Basic profit is reconciled to                        
headline earnings as follows:                          
Profit after taxation -                              
attributable to equity holders                           5 159              6 955    
(Bargain purchase)/Impairment of goodwill                   (6)             1 558    
Realised profit on sale of                           
listed investments                                           -             (1 097)   
Add back: Net fair value adjustment -                
investment property                                     (1 342)            (3 890)   
Fair value adjustment, net of                        
straight-line lease income adjustment                     (372)            (2 817)   
Fair value adjustment                                
(equity-accounted investments)                            (585)              (486)   
NCI portion of fair value adjustment                      (385)              (587)   
Headline earnings attributable to shareholders           3 811              3 526    
                                                                                                                             
Note 5: Financial Instrument fair value disclosure                                                                           
Measurement of fair values                                                                                                   
A number of the Group's accounting policies and disclosures require the measurement of fair values, for both financial and 
non-financial assets and liabilities.                                      

The Group has an established control framework with respect to the measurement of fair values. This includes a valuation 
team that has overall responsibility for overseeing all significant fair value measurements, including level 3 fair values, 
and reports directly to the financial director.                                      

The valuation team regularly reviews significant unobservable inputs and valuation adjustments. If third-party information, 
such as broker quotes or pricing services, is used to measure fair values, then the valuation team assesses the evidence 
obtained from the third parties to support the conclusion that such valuations meet the requirements of IFRS, including 
the level in the fair value hierarchy in which such valuations should be classified.                                      

Significant valuation issues are reported to the Group's Audit Committee.                                                      

When measuring the fair value of an asset or a liability, the Group uses observable market data as far as possible. 
Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation 
techniques as follows:                                      
- Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.                                      
- Level 2: inputs other than quoted prices included in level 1 that are observable for the asset or liability, either 
  directly (i.e. as prices) or indirectly (i.e. derived from prices).                                      
- Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).                                      

If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value 
hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy 
as the lowest level input that is significant to the entire measurement.                                      

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including 
their levels in the fair value hierarchy for financial instruments measured at fair value. It does not include fair value 
information for financial assets and financial liabilities not measured at fair value if the carrying amount is a 
reasonable approximation of fair value.*                                                                                   
                                                                                                                           
                                                    Carrying amount                                                Fair value                     
                                                       Designated                                 
                               Held for trading      at fair value           Total              Level 1             Level 2           Level 3               
                                2016     2015      2016       2015      2016       2015     2016      2015      2016      2015     2016     2015    
                                  Rm       Rm        Rm         Rm        Rm         Rm       Rm        Rm        Rm        Rm       Rm       Rm    
                                                                                                                                                    
Financial assets              
measured at fair value                                                                                                                 
Non-current financial assets                                                                                                                        
Listed investments                 -        -       440        380       440        380        -         -         -         -      440      380    
Long-term loans granted            -        -       589        614       589        614        -         -         -         -      589      614    
Derivative assets                107      105         -          -       107        105        -         -       107       105        -        -    
Current assets                                                                                                                                      
Current portion of            
long-term loans granted            -        -        16        467        16        467        -         -         -         -       16      467    
Total financial assets        
measured at fair value           107      105     1 045      1 461     1 152      1 566        -         -       107       105    1 045    1 461    
Financial liabilities         
measured at fair value                                                                                                            
Non-current financial 
liabilities                                                                                                                       
Interest-bearing borrowings        -        -    34 089     27 979    34 089     27 979        -         -    34 089    27 979        -        -    
Derivative liabilities         1 094      776         -          -     1 094        776        -         -     1 094       776        -        -    
                                                                                                                                                    
Current financial liabilities                                                                                                                       
Current portion of non-current
financial liabilities              -        -     4 491      5 930     4 491      5 930        -         -     4 491     5 930        -        -    
Total financial liabilities   
measured at fair value         1 094      776    38 580     33 909    39 674     34 685        -         -    39 674    34 685        -        -    
 
There have been no significant changes in valuation techniques or significant transfers between level 1, level 2 and level 3 during 
the year under review.                                                                                                        
* The Group has not disclosed the fair values for financial instruments such as trade and other receivables, cash and cash equivalents, 
trade and other payables and linked unitholders for distribution because their carrying amounts are a reasonable approximation of fair value.          

Note 5: Financial Instrument fair value disclosure continued             
Measurement of fair values continued                                                                         
The following tables show the valuation techniques used in measuring level 2 and level 3 fair values at 30 June 2016 and 30 June 2015 
for financial instruments measured at fair value in the statement of financial position, as well as the significant unobservable inputs used. 

Financial instruments measured at fair value                                                                
                                                                                                            
Type                     Valuation technique                      Unobservable inputs           Inter-relationship between 
                                                                                                unobservable inputs and fair
                                                                                                value measurement                      
Listed investments       While SESCF is a listed                  Net initial yield - 6.41%     The estimated fair value would
                         investment, there is an absence                                        increase/(decrease) if:                  
                         of observable trading prices                                           - increase/(decrease) in the stabilised  
                         for its shares. As a result, the                                         net operating income;     
                         fair value of the investment,                                          - (decrease)/increase in the yield used to 
                         on 30 June 2016, has been determined                                     calculate the terminal value indication; and
                         on the net asset value of SESCF.                                       - (decrease)/increase in the discount rate used
                         The net asset value of SESCF                                             to calculate the gross capital value.
                         includes an independent revaluation 
                         of the underlying investment property, 
                         which is the significant asset per 
                         the statement of financial position. 
                         The fair value movement for the year, 
                         which comprises the revaluation based 
                         on the change in the underlying value 
                         of the investment, as well as the 
                         exchange rate movement, amounted 
                         to R60 million.                                           
Long-term loans 
granted                        
323 Festival Street      Valued by discounting future cash        Credit margin: 3.00%          Estimated fair value would increase/(decrease)        
(Pty) Ltd                flows using the South African swap       (FY15: 3.00%)                 if the credit margin were lower/(higher)
                         curve plus the historic charged credit 
                         margin at the dates when the cash 
                         flows will take place.                  
 
Rabie Property Group     Valued by discounting future cash        Not applicable                 Not applicable        
(Pty) Ltd                flows using the floating rate that 
                         is applicable to this loan.                                       
 
Acucap Unit Purchase     Valued by discounting future cash        Not applicable                 Not applicable       
Scheme                   flows using the South African swap 
                         curve at the dates when the cash 
                         flows will take place.                       
Interest-bearing 
borrowings 
and derivatives          
Interest-bearing         Valued by discounting future cash        Credit margins: 0.45% to       Estimated fair value would increase/(decrease) 
borrowings               flows using the South African swap       3.60% (FY15: 0.36% to 3.00%)   if the credit margin were lower/ (higher)     
                         curve plus an appropriate credit                           
                         margin at the dates when the cash                                 
                         flows will take place.                             

Derivative assets        Valued by discounting the forward        Not applicable                 Not applicable                        
and liabilities:         rates applied at year end to the                                       
forward exchange         open hedged positions.                                                                               
contracts        

Derivative assets and    Valued by discounting the future         Not applicable                 Not applicable                             
liabilities:             cash flows using the South African                                    
interest rate swaps      swap curve at the dates when the                                       
                         cash flows will take place.                                                                            

Derivative assets and    Valued by discounting the future         Not applicable                 Not applicable                          
liabilities:             cash flows using the basis swap                                   
cross-currency interest  curve of the respective currencies                                  
rate swaps               at the dates when the cash flows                                   
                          will take place.                                                                                                       

Note 5: Financial Instrument fair value disclosure continued                                                                                     
Financial instruments measured at fair value continued                                                                                     
The following table shows a reconciliation from the opening balances to the closing balances for 
level 3 fair values.                                                                                     
                                                                                                            
                                         Gain/(loss) in                                              
                                         profit for the                         Acquired/            
                                         year and other                        (disposed)                  
                             Opening      comprehensive        Accrued      and advanced/       Closing       
                             balance             income       interest          (settled)       balance 
                                  Rm                 Rm             Rm                Rm             Rm  
2016                                                                                                     
Listed investments               380                 60              -                 -            440    
Long-term loans granted        1 081                 (6)            29              (499)           605    
2015                                                                                                     
Listed investments                 -                  2              -               378            380    
Long-term loans granted          466                  1             15               599          1 081    

The fair value gains and losses are included in the fair value adjustment line in profit or loss. 
The gains and losses in other comprehensive income are included in the translation of foreign operations.                                                                                       
A 1% decrease in the spread used to determine the fair value of long-term loans would increase the 
value to R609 million (FY15: R1 087 million). A 1% increase in the spread would decrease the value 
to R601 million (FY15: R1 075 million).                                                                                       

ADMINISTRATION

DIRECTORS 
JF Marais (Chairman), LN Sasse* (Chief Executive Officer), EK de Klerk* (Managing Director), 
G Volkel* (Financial Director), MG Diliza, PH Fechter, LA Finlay, JC Hayward, HS Herman, 
SP Mngconkola, R Moonsamy, NBP Nkabinde, FJ Visser 
* Executive 

COMPANY SECRETARY
RA Krabbenhoft 

REGISTERED OFFICE
The Place, 1 Sandton Drive, Sandton, 2196 
PO Box 78949, Sandton, 2146

TRANSFER SECRETARY
Computershare Investor Services (Pty) Ltd
(Registration number 2004/003647/07)
Ground Floor, 70 Marshall Street, Johannesburg, 2001
PO Box 61051, Marshalltown, 2107 

SPONSOR
Investec Bank Limited
(Registration number 1969/004763/06)
100 Grayston Drive, Sandown, Sandton, 2196
PO Box 785700, Sandton, 2146
1 September 2016 

http://www.growthpoint.co.za

Date: 01/09/2016 09:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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