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GROWTHPOINT PROPERTIES LIMITED - Condensed unaudited results for the six months ended 31 December 2016

Release Date: 01/03/2017 09:00
Code(s): GRT     PDF:  
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Condensed unaudited results for the six months ended 31 December 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 

Condensed unaudited results for the six months ended 31 December 2016

Highlights

- 95.0 cents
  6.1% growth dividend per share

- R2.7 billion
  Total distributable income 10% growth HY16 to HY17

- 36.7% 
  Group LTV Gearing remains below 40%
 
- R120.4 billion
  Group property assets

- 27.1%
  RSA total expense to income ratio
  Expenses under control 27.2% FY16
  
- 5.4% 
  RSA vacancies down from 5.7% FY16

  
COMMENTARY
INTRODUCTION
Growthpoint is the largest South African primary listed REIT with a quality portfolio of 473 directly owned properties
in South Africa valued at R77.0 billion, as well as three equity-accounted investments, with our share of properties
valued at R12.2 billion of which the V&A Waterfront is the largest at R8.0 billion. Growthpoint acquired a 26.9% stake 
in London Stock Exchange (AIM)-listed Globalworth Real Estate Investments (Globalworth) during the period, with our share
of properties valued at R3.8 billion. In addition, Growthpoint has a 64.3% interest in Growthpoint Properties Australia
(GOZ), which owns 59 properties in Australia valued at R31.6 billion.

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 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 R73.3 billion at 
31 December 2016 (HY17). Over this period, on average, more than 147.2 million shares traded per month (HY16: 
155.4 million). The monthly average value traded was R3.8 billion (HY16: R3.9 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 70.9% of the property portfolio by
value and 83.7% 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 0.7% to 2 495 (FY16: 2 477) cents per share.

GROWTH IN DISTRIBUTIONS
Growthpoint delivered growth in distributions per share for HY17 of 6.1% and has declared an interim dividend of 
95.0 cents per share for the six months ended 31 December 2016. This growth is in excess of the guidance given 
to the market in the FY16 results of between 5.0% and 6.0%.

In Rand terms distributions increased by R244 million or 10.0% to R2 688 million and is supported by a solid
performance from the South African portfolio, especially the V&A Waterfront.

The increase in distributions was further enhanced by the investment in GOZ, where a currency hedging strategy 
led to distributions from GOZ being received at an average rate of R10.79:AUD1 compared to R10.28:AUD1 for HY16.

BASIS OF PREPARATION
The condensed consolidated interim financial statements are prepared in accordance with International Financial
Reporting Standard, IAS 34 Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by the Accounting
Practices Committee and Financial Pronouncements as issued by Financial Reporting Standards Council and the requirements of
the Companies Act of South Africa. The accounting policies applied in the preparation of these interim financial
statements are in terms of International Financial Reporting Standards and are consistent with those applied in the previous
annual financial statements. Mr G Volkel (CA(SA)), Growthpoint's Financial Director, was responsible for supervising the
preparation of these condensed consolidated interim financial statements. These condensed consolidated interim financial
statements have not been reviewed or audited by Growthpoint's independent external auditors.

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 HY17 of R9.90:AUD1 (FY16: R11.04: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 R10.55:AUD1 for HY17 (HY16: R9.84:AUD1).

The resulting foreign currency translation difference is recognised in other comprehensive income. A non-controlling
interest was raised for the 35.7% (FY16: 34.5%) not owned by Growthpoint.

A deferred tax liability of R1.9 billion (FY16: R2.1 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 R67 million (HY16: R33 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 were accounted for.

Retail operations at the V&A Waterfront performed well where 17.0% growth in sales was recorded with a contributing
factor being the weaker Rand, for the first half of the calendar year, which afforded tourists the opportunity to spend
more. Included in the HY17 finance income, is R256 million income from the V&A Waterfront, compared to distributable
income for HY16 of R217 million.

NET PROPERTY INCOME
Gross revenue increased by 10.4% for HY17 compared to HY16. The South African operations increased revenues by 
5.1% compared to HY16. The GOZ operations increased revenues by 31.7% as a result of the acquisition of the 
GPT Metro Office Fund (GMF). 

The ratio of property expenses to revenue for the Group remained at 21.3% at HY17 (HY16: 21.3%). For RSA the ratio
increased to 23.7% from 23.5% at HY16.

Best practice recommendations were issued by the SA REIT Association 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 three different ways to comply with these best practice recommendations.

                                                          HY17        HY16    
                                                             %           %    
Property cost-to-income ratios                                                
Gross cost-to-income ratio                               31.19       31.51    
Net cost-to-income ratio                                 16.82       16.49    
Cost-to-income ratio based on IFRS reported figures      21.30       21.28    
Operating cost-to-income ratios                                               
Gross cost-to-income ratio                                3.52        3.07    
Net cost-to-income ratio                                  3.79        3.26    
Cost-to-income ratio based on IFRS reported figures       3.79        3.26    
Total cost-to-income ratios                                                   
Gross cost-to-income ratio                               34.71       34.58    
Net cost-to-income ratio                                 20.82       19.95    
Cost-to-income ratio based on IFRS reported figures      25.09       24.55    

FAIR VALUE ADJUSTMENTS
The revaluation of properties in South Africa and GOZ resulted in an upward revision of R1.6 billion (1.4%) to 
R108.7 billion for investment property (including investment properties classified as held for sale). This was 
mainly due to an increase in future contractual rental. Interest-bearing borrowings and derivatives were fair 
valued using the swap curve at HY17, resulting in a decrease of R547 million in the overall liability. Losses 
of R70 million and R287 million were realised on the settlement of interest rate swaps by GOZ and the South 
African operations 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 3.0% to R1 254 million (HY16: R1 217 million). 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 9.2% (7.6% including Euro debt and AUD and EUR cross currency interest rate swaps (CCIRS)) 
(HY16: 9.0%). The weighted average maturity of debt remained at 2.7 years (HY16: 2.7 years). Finance costs for GOZ 
increased by 37.3% from R212 million in HY16 to R291 million in HY17, mainly due to the GMF transaction. The interest 
cover ratio, whereby the income from the equity-accounted investments and listed investments are included in the 
operating profit, remained at 3.4 times at HY17 (HY16: 3.4 times).

FINANCE INCOME
Finance income decreased by 4.9% to R311 million (HY16: R327 million). 

ACQUISITIONS AND COMMITMENTS
Growthpoint RSA acquired five office properties for R1.2 billion, which included two hospitals worth R1.1 billion for
the Healthcare Fund in pursue of Growthpoint's fund management strategy.

Development and capital expenditure for RSA amounting to R1.1 billion (HY16: R1.2 billion) relates to various projects
undertaken during the period, of which the Discovery Head Office accounted for R371 million. GOZ acquired six office
properties for R5.0 billion (AUD479.4 million) as part of the GMF transaction and incurred development expenditure
amounting to R318 million (AUD29.5 million) in respect of an office property development situated at 211 Wellington Road,
Mulgrave, Victoria. Other development and capital expenditure for GOZ amounting to R76 million (AUD7.2 million) relates 
to various projects undertaken during the period. 

Growthpoint RSA has commitments outstanding in respect of developments amounting to R1.8 billion (HY16: R1.8 billion)
of which the Discovery Head Office (55% share) of R697 million is the largest, followed by the Exxaro Head Office and
AECOM in Centurion at R550 million and then Draper on Main at R123 million. Further commitments in respect of property
acquisitions amount to R582 million (HY16: R231 million). 

GOZ has commitments of R218 million (AUD22.0 million) which includes a commitment to fund the development of 
1 Charles Street, Parramatta, New South Wales, for an amount of R59 million (AUD6 million).

Development and capital expenditure at the V&A Waterfront amounted to R312 million (HY16: R266 million) for the
period. Growthpoint's share of the V&A Waterfront's commitments outstanding at HY17 amounted to R364 million 
(HY16: R706 million), which relates to Battery Parkade, Silo number 6 (Radisson Red Hotel), Silo number 3 
(residential for sale) and other commitments amounting to R85 million.

ACQUISITION OF GLOBALWORTH
On 20 December 2016, Growthpoint RSA acquired a 26.9% stake in the London Stock Exchange (AIM)-listed Globalworth,
which is classified as an associate, for a consideration of R2.7 billion (EUR186.4 million). 

Globalworth owns a EUR1 billion property portfolio consisting of mostly modern A-grade offices, industrial properties,
a residential property complex as well as developments. Its portfolio is concentrated in Bucharest and one in Timisoara, 
Romania and is underpinned by Euro denominated leases with many multinational business brands. 

This acquisition was funded by loans of EUR100.0 million and CCIRS of EUR86.4 million at a weighted average term of 
4.2 years. The Euro-based interest rates are fixed for a weighted average term of 9.9 years at a weighted average 
all-in cost of 2.6%. 

Transaction costs to date have been treated as part of the investment in the associate. A notional bargain purchase of
R80 million has been identified as a result of this investment, and is included in equity-accounted investments - net
of tax.

The Group's share of the results in Globalworth and its aggregated assets and liabilities are shown below:

                      Six months ended     
                     31 December 20161    
                                    Rm    
Assets                          17 808    
Liabilities                      7 463    
Revenue                              -    
Share of profit                     80    
Percentage held                  26.9%  
1 The initial accounting for this acquisition was not completed at the time the condensed financial 
statements were authorised for issue, and is therefore labelled as pro forma.   

DISPOSALS AND HELD-FOR-SALE ASSETS
Growthpoint RSA disposed of seven properties in the current period (HY16: six) for R259 million (HY16: R626 million)
with a collective R85 million (HY16: R27 million) profit on cost achieved. GOZ disposed of five industrial properties 
for R1.6 billion (AUD151.6 million).

At HY17, four RSA properties (HY16: eight) valued at R968 million (HY16: R394 million) and one Australian property
valued at R102 million (AUD10.3 million) were classified as held-for-sale assets.

ARREARS
Total RSA arrears at HY17 amounted to R82.8 million (HY16: R68.2 million) with a provision for bad debts of 
R34.2 million (HY16: R26.5 million). Total RSA bad debt expenses amounted to R12.0 million (HY16: R7.2 million).

VACANCY LEVELS
At HY17, the total m2 of Growthpoint's portfolio and vacancy levels expressed as a percentage of GLA were:

                                      GLA                   Vacancy
                                 m2            m2          %        %    
                               HY17          HY16       HY17     HY16    
Retail                    1 422 121     1 408 468        2.6      2.5    
Office                    1 759 080     1 804 820        6.9      7.6    
Industrial                2 273 094     2 243 707        6.0      4.2    
RSA total                 5 454 295     5 456 995        5.4      4.9    
V&A Waterfront (50%)        217 920       206 497        1.1      1.3    
GOZ                       1 065 623     1 085 041        0.5      0.8    
Total/average %           6 737 838     6 748 533        4.5      4.1    

Vacancies have improved in the office sector, while vacancies across the retail and industrial sectors have increased.
Tenant retention remains a priority and is being facilitated through various initiatives including the UNdeposit and
SmartMove campaigns, which continue to gain significant traction.

EQUITY RAISED
During the period under review, Growthpoint issued 44.0 million shares and raised R1.1 billion through the DRIP
programme. The equity raised from the DRIP was utilised to finance Growthpoint's investment activities.

BORROWINGS AND NET WORKING CAPITAL
At HY17, the consolidated loan-to-value ratio (LTV), 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 36.7% (HY16: 32.4%). The higher LTV relates directly to the
Globalworth investment being debt funded. 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 R3.5 billion and in Australia of R2.9 billion
(AUD292 million) which provides assurance that it will be able to meet its short-term commitments which exceeded
current assets by R4.6 billion at HY17 (FY16: R1.4 billion).

CHANGE IN DIRECTORATE
There have been no changes in directorate during the period under review. 

EVENTS AFTER THE REPORTING PERIOD
In line with IAS 10 Events after the Reporting Period, the declaration of the dividend occurred after the end of the
reporting period, resulting in a non-adjusting event that is not recognised in the financial statements. The R242 million
for linked unitholders for distribution in the statement of financial position (HY17) relates to the NCI's portion of
the GOZ distribution.

PROSPECTS
Property and economic fundamentals in RSA remain weak with further weakness anticipated. The contribution to distributable 
income from both the V&A Waterfront and GOZ is expected to be consistent but the unhedged portion of the GOZ income could
be negatively impacted by further ZAR strength.  The Globalworth transaction will be accretive to earnings for the second 
half of FY17. Given the negative outlook for RSA, coupled with the volatility of the ZAR, the Growthpoint Board is of the view that
the dividend growth for FY17 will remain similar to that achieved for HY17.

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

INTERIM DIVIDEND WITH THE ELECTION TO REINVEST THE CASH DIVIDEND IN RETURN FOR GROWTHPOINT SHARES
Notice is hereby given of the declaration of the final dividend number 62 of 95.00000 cents per share for the period
ended 31 December 2016. Shareholders will be entitled to elect to reinvest 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
would be communicated to shareholders before the publication of the finalisation announcement on Monday, 13 March 2017.

Other information:
- Issued shares at 31 December 2016: 2 802 007 024 ordinary shares of no par value (net of treasury shares).
- Income Tax Reference Number of Growthpoint: 9375/077/71/7.

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.

Fractional entitlements to shares
Trading in the Strate environment does not permit fractions and fractional entitlements. Where a shareholder's
entitlement to shares in relation to the share re-investment alternative gives rise to a fraction of a new share, 
such fraction will be rounded down to the nearest whole number, resulting in an allocation of whole shares and a 
cash payment for the fraction.

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 the 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 abovementioned 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. Any dividend received by a non-resident from a REIT is subject to Dividend Tax at 20%, 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 20%, the net
amount due to non-resident shareholders is 76.00000 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 Services.

If applicable, non-resident shareholders are advised to contact the CSDP, broker or the company, as the case may be,
to arrange for the abovementioned 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 a share alternative are as follows:
Salient dates and times                                                                          2017    
Circular and form of election posted to shareholders (see note 5)                     Friday, 3 March 
                                                                           
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                                           Friday, 10 March 
                                                                           
Announcement of share re-investment alternative issue price and            
finalisation information published on SENS                                           Monday, 13 March
                                                                           
Last day to trade (LDT) cum dividend                                                 Monday, 20 March  
                                                                           
Shares to trade ex-dividend                                                       Wednesday, 22 March   
                                                                           
Listing of maximum possible number of share alternative shares              
commences on the JSE                                                                 Friday, 24 March 
                                                                           
Last day to elect to receive the share alternative (no late forms          
of election will be accepted) at 12:00 (South African time)                          Friday, 24 March  
                                                                           
Record date                                                                          Friday, 24 March
                                                                           
Announcement of results of cash dividend and share re-investment           
alternative published on SENS                                                        Monday, 27 March 
                                                                           
Cheques posted to certificated shareholders and accounts credited          
by CSDP or broker to dematerialised shareholders electing the              
cash alternative on                                                                  Monday, 27 March 
                                                                           
Share certificates posted to certificated shareholders and                 
accounts credited by CSDP or broker to dematerialised                      
shareholders electing the share re-investment alternative on                      Wednesday, 29 March 
                                                                           
Adjustment to the maximum number of shares listed on or about                      Thursday, 30 March    
Notes:
1. Shareholders electing the share re-investment 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 commencement of trade on Wednesday, 22 March 2017 
   and the close of trade on Friday, 24 March 2017.
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.
5. The distribution of the circular and form of election and the right to elect shares in jurisdictions other 
   than the Republic of South Africa may be restricted by law, and failure to comply with any of these 
   restrictions may constitute a violation of the securities laws of any such jurisdictions. Shareholders' 
   rights to elect shares are not being offered, directly or indirectly, in the United States of America, the 
   United Kingdom, Canada, Australia or Japan unless certain exemptions from the requirements of those 
   jurisdictions are applicable.                              

By order of the Board

GROWTHPOINT PROPERTIES LIMITED
28 February 2017

1 March 2017


Statement of profit or loss and other comprehensive income
For the six months ended 31 December 2016
                                                             Unaudited        Unaudited        Audited     
                                                            six months       six months      12 months    
                                                           31 December      31 December        30 June    
                                                                  2016             2015           2016     
                                                   Note             Rm               Rm             Rm    
Revenue, excluding straight-line lease income                             
adjustment                                                       5 178            4 689          9 764    
Straight-line lease income adjustment                               40               88            455    
Revenue                                                          5 218            4 777         10 219    
Property expenses                                               (1 103)            (998)        (2 126)   
Net property income                                              4 115            3 779          8 093    
Other operating expenses and income                               (196)            (153)          (308)   
Operating profit                                                 3 919            3 626          7 785    
Fair value adjustments                                           1 678            1 833            409    
Equity-accounted investment earnings - net of tax                   68                7            543    
Finance costs                                                   (1 254)          (1 217)        (2 466)   
Non-cash charges                                                   (64)             (70)          (121)   
Capital items                                                      (19)              (2)           (32)   
Finance and other investment income                   3            311              327            690    
Profit before taxation                                           4 639            4 504          6 808    
Taxation                                                           137             (850)          (841)   
Normal taxation (including withholding tax on                             
GOZ distribution)                                                  (67)             (37)           (76)   
Deferred taxation                                                  204             (813)          (765)   
Profit after taxation                                            4 776            3 654          5 967    
Profit attributable to:                                                                                   
Equity holders                                                   4 416            3 190          5 159    
Non-controlling interest (NCI)                                     360              464            808    
Other comprehensive income:                                                                               
Items that are or may be reclassified to profit                           
or loss:                                                                  
Translation of foreign operations                               (1 891)           2 923          2 282    
Total comprehensive income                                       2 885            6 577          8 249    
Attributable to:                                                                                          
Equity holders                                                   3 154            5 088          6 653    
Non-controlling interest                                          (269)           1 489          1 596    


Statement of financial position
As at 31 December 2016
                                                             Unaudited        Unaudited        Audited    
                                                           31 December      31 December        30 June    
                                                                  2016             2015           2016     
                                                                    Rm               Rm             Rm    
ASSETS
Non-current assets                                             120 833          112 922        113 176    
Fair value of investment property for                                                       
accounting purposes                                            105 085          100 295        100 274    
Straight-line lease income adjustment                            2 508            2 325          2 478    
Fair value of property assets                                  107 593          102 620        102 752    
Equity-accounted investments                                     9 627            6 223          6 821    
Listed investments                                                 382              452            440    
Intangible assets                                                2 412            2 532          2 461    
Equipment                                                            5                8              6    
Long-term loans granted                                            467              611            589    
Derivative assets                                                  347              476            107    
Current assets                                                   5 361            3 400          5 351    
Investment property classified as held for sale                  1 070              394          1 938    
Current portion of long-term loans granted                         294                1             16    
Trade and other receivables                                      2 970            2 169          2 496    
Cash and cash equivalents                                        1 027              836            901    
Total assets                                                   126 194          116 322        118 527    
EQUITY AND LIABILITIES                                                                                    
Shareholders' interest                                          69 922           67 799         68 295    
Share capital                                                   43 986           41 635         42 929    
Treasury shares                                                   (596)            (603)          (600)   
Foreign currency translation reserve                             1 331            2 970          2 602    
Non-distributable reserve                                       22 513           21 353         20 736    
Retained income                                                  2 688            2 444          2 628    
Non-controlling interest                                         6 212            6 008          5 871    
Total equity                                                    76 134           73 807         74 166    
Non-current liabilities                                         40 119           32 796         37 565    
Interest-bearing borrowings                                     37 404           29 471         34 089    
Derivative liabilities                                             537              898          1 094    
Deferred taxation liability                                      2 178            2 427          2 382    
Current liabilities                                              9 941            9 719          6 796    
Trade and other payables                                         2 200            2 590          2 045    
Current portion of non-current financial liabilities             7 439            6 860          4 491    
Taxation payable                                                    60               33             29    
Linked unitholders for distribution                                242              236            231    
Total equity and liabilities                                   126 194          116 322        118 527    
                                                                 Cents            Cents          Cents    
Net asset value per share                                        2 495            2 508          2 477    
Tangible net asset value per share which excludes                                           
intangible assets and deferred tax                               2 487            2 505          2 474    


Statement of cash flows
For the six months ended 31 December 2016
                                                             Unaudited        Unaudited        Audited    
                                                            six months       six months      12 months    
                                                           31 December      31 December        30 June    
                                                                  2016             2015           2016     
                                                                    Rm               Rm             Rm    
Cash generated from operations                                   3 747            4 077          7 322    
Finance and other investment income                                 55              109             51    
Finance costs                                                   (1 187)          (1 203)        (2 538)   
Taxation paid                                                      (65)             (35)           (78)   
Capital items                                                      (19)               1            (32)   
Distribution to shareholders/unitholders                        (2 761)          (1 446)        (4 073)   
Net cash (outflow)/inflow from operating activities               (230)           1 503            652    
Net cash outflow from investing activities                      (8 764)          (1 577)        (5 259)   
Net cash inflow from financing activities                        9 165              334          4 948    
Net increase in cash and cash equivalents                          171              260            341    
Translation effects on cash and cash equivalents of      
foreign operation                                                  (45)              71             55    
Cash and cash equivalents at beginning of period                   901              505            505    
Cash and cash equivalents at end of period                       1 027              836            901    


Statement of changes in equity
For the six months ended 31 December 2016
                                                                                             Foreign                        
                                                                                            currency               Non-     
                                                                                         translation      distributable     
                                                                Share      Treasury          reserve            reserve  
                                                              capital        shares            (FCTR)              (NDR)
                                                                   Rm            Rm               Rm                 Rm
Audited balance at 30 June 2015                                41 132          (646)           1 072             20 604     
Total comprehensive income                                                                                                  
- profit after taxation                                             -             -                -                  -     
Total comprehensive income                                                                                                  
- other comprehensive income                                        -             -            1 898                  -     
Transactions with owners recognised directly in equity:                                                                     
Contributions by and distributions to owners                                                                                
Shares issued                                                     503             -                -                  -     
Dividends received on treasury shares                               -             -                -                  -     
Transfer non-distributable items to NDR                             -             -                -                759     
Share-based payment transaction                                     -            43                -                (10)     
Dividends declared - NCI                                            -             -                -                  -     
Dividends declared                                                  -             -                -                  -     
Changes in ownership interests                                                                                              
Rights issue and acquisitions - GOZ                                 -             -                -                  -     
Unaudited balance at 31 December 2015                          41 635          (603)           2 970             21 353     
Total comprehensive income 
- profit after taxation                                             -             -                -                  -   
Total comprehensive income  
- other comprehensive income                                        -             -             (404)                 -     
Transactions with owners recognised directly in equity:                                                                     
Contributions by and distributions to owners                                                                                
Shares issued                                                   1 294             -                -                  -     
Dividends received on treasury shares                               -             -                -                  -     
Transfer non-distributable items to NDR                             -             -                -               (609)    
Share-based payment transaction                                     -             3                -                 16     
Transfer to NDR reserves with NCI                                   -             -                -                (24)    
Dividends declared - NCI                                            -             -                -                  -     
Dividends declared                                                  -             -                -                  -     
Changes in ownership interests                                                                                              
Rights issue and acquisitions - GOZ                                 -             -               36                  -     
Acquisition of NCI without a change in control                      -             -                -                  -     
Audited balance at 30 June 2016                                42 929          (600)           2 602             20 736     
Total comprehensive income                                                                                                  
- profit after taxation                                             -             -                -                  -     
Total comprehensive income                                                                                                  
- other comprehensive income                                        -             -           (1 262)                 -     
Transactions with owners recognised directly in equity:                                                                     
Contributions by and distributions to owners                                                                                
Shares issued                                                   1 057             -                -                  -     
Dividends received on treasury shares                               -             -                -                  -     
Transfer non-distributable items to NDR                             -             -                -              1 754     
Share-based payment transaction                                     -             4                -                 23     
Dividends declared - NCI                                            -             -                -                  -     
Dividends declared                                                  -             -                -                  -     
Changes in ownership interests                                                                                              
Rights issue and acquisitions - GOZ                                 -             -               (9)                 -     
Unaudited balance at 31 December 2016                          43 986          (596)           1 331             22 513     

                                                                                                Non-              
                                                             Retained         Share-     controlling             
                                                               income       holders'        interest         Total     
                                                                  (RI)      interest            (NCI)       equity     
                                                                   Rm             Rm              Rm            Rm     
Audited balance at 30 June 2015                                 1 207         63 369           4 713        68 082     
Total comprehensive income                                                                                             
- profit after taxation                                         3 190          3 190             464         3 654     
Total comprehensive income                                                                                             
- other comprehensive income                                        -          1 898           1 025         2 923     
Transactions with owners recognised directly in equity:                                                                
Contributions by and distributions to owners                                                                           
Shares issued                                                       -            503               -           503     
Dividends received on treasury shares                              13             13               -            13     
Transfer non-distributable items to NDR                          (759)             -               -             -     
Share-based payment transaction                                     -              33               -            33     
Dividends declared - NCI                                            -              -            (202)         (202)     
Dividends declared                                             (1 207)        (1 207)              -        (1 207)     
Changes in ownership interests                                                                                         
Rights issue and acquisitions - GOZ                                 -              -               8             8     
Unaudited balance at 31 December 2015                           2 444         67 799           6 008        73 807     
Total comprehensive income  
- profit after taxation                                         1 969          1 969             344         2 313   
Total comprehensive income     
- other comprehensive income                                        -           (404)           (237)         (641)     
Transactions with owners recognised directly in equity:                                                                
Contributions by and distributions to owners                                                                           
Shares issued                                                       -          1 294               -         1 294     
Dividends received on treasury shares                              26             26               -            26     
Transfer non-distributable items to NDR                           609              -               -             -     
Share-based payment transaction                                     -             19               -            19     
Transfer to NDR reserves with NCI                                  24              -               -             -     
Dividends declared - NCI                                            -              -            (237)         (237)     
Dividends declared                                             (2 444)        (2 444)              -        (2 444)     
Changes in ownership interests                                                                                         
Rights issue and acquisitions - GOZ                                 -             36              58            94     
Acquisition of NCI without a change in control                      -              -             (65)          (65)     
Audited balance at 30 June 2016                                 2 628         68 295           5 871        74 166     
Total comprehensive income                                                                                             
- profit after taxation                                         4 416          4 416             360         4 776     
Total comprehensive income                                                                                             
- other comprehensive income                                        -         (1 262)           (629)       (1 891)    
Transactions with owners recognised directly in equity:                                                                
Contributions by and distributions to owners                                                                           
Shares issued                                                       -          1 057               -         1 057     
Dividends received on treasury shares                              26             26               -            26     
Transfer non-distributable items to NDR                        (1 754)             -               -             -     
Share-based payment transaction                                     -             27               -            27     
Dividends declared - NCI                                            -              -            (249)         (249)     
Dividends declared                                             (2 628)        (2 628)              -        (2 628)     
Changes in ownership interests                                                                                         
Rights issue and acquisitions - GOZ                                 -             (9)            859           850     
Unaudited balance at 31 December 2016                           2 688         69 922           6 212        76 134     


Segmental analysis
For the six months ended 31 December 2016

                                          South Africa
                                                                      Total                                                         Other        
                                                                      South                 Total as           V&A    Global-1      joint                
                                 Retail     Office    Industrial     Africa   Australia     reported    Waterfront       worth   ventures     Total         
                                     Rm         Rm            Rm         Rm          Rm           Rm            Rm          Rm         Rm        Rm
Statement of profit or           
loss and other                   
comprehensive income             
extracts - 31 December 2016                                                                                                                           
Revenue, excluding straight-line                                                                                                           
lease income adjustment           1 544      1 739           654      3 937       1 241        5 178           349           -         12    5 539    
Property expenses                  (395)      (395)         (143)      (933)       (170)      (1 103)          (95)          -         (7)  (1 205)   
Segment results                   1 149      1 344           511      3 004       1 071        4 075           254           -          5    4 334    
Material non-cash items                                                                                                                               
Fair value adjustment on                                                                                                         
investment property                 540        436           281      1 257         219        1 476             -           -         (7)   1 469    
Fair value adjustment on                                                                                                         
investment property - NCI             -          -             -          -         122          122             -           -          -      122    
Total fair value adjustment                                                                                                        
on total investment property        540        436           281      1 257         341        1 598             -           -         (7)   1 591    

                                                                                                      Other
                                       South                 Total as           V&A    Global-1       joint       
                                      Africa    Australia    reported    Waterfront       worth    ventures    Total     
                                          Rm           Rm          Rm            Rm          Rm          Rm       Rm  
Further extracts of statement of                                                                   
profit or loss and other                                                                           
comprehensive income                                                                               
Other operating expenses and income     (135)         (61)       (196)           (9)          -         (27)    (232)   
Finance costs                           (963)        (291)     (1 254)          (10)          -          (2)  (1 266)   
Finance and other investment income      308            3         311            22           -           -      333    

                                        South Africa
                                                                Total                                                        Other           
                                                                South                 Total as           V&A   Global-1      joint           
                               Retail    Office   Industrial   Africa    Australia    reported    Waterfront      worth   ventures     Total           
                                   Rm        Rm           Rm       Rm           Rm          Rm            Rm         Rm         Rm        Rm           
Statement of financial                                                  
position extracts at                                                    
31 December 2016                                                                                               
Investment property                                                                                                                                
Opening balance 1 July 2016    29 210    32 655       11 887   73 752       30 938     104 690         7 766          -        411   112 867    
Acquisitions                        -     1 169           12    1 181        5 041       6 222             -      3 813          -    10 035    
Developments and capital                                                                                         
expenditure                       285       584          232    1 101          394       1 495           312          -         46     1 853    
Disposals                           -       (96)        (163)    (259)      (1 587)     (1 846)         (113)         -          -    (1 959)   
Foreign exchange loss               -         -            -        -       (3 496)     (3 496)            -          -          -    (3 496)   
Fair value adjustments            540       436          281    1 257          341       1 598             -          -         (7)    1 591    
Fair value of total                                                                                              
property assets -                                                                                                
31 December 2016               30 035    34 748       12 249   77 032       31 631     108 663         7 965      3 813        450   120 891    
Fair value of long-term                                                                                          
property assets                30 035    33 782       12 247   76 064       31 529     107 593         7 965      3 813        450   119 821    
Investment property                                                                                              
classified as held for                                                                                           
sale                                -       966            2      968          102       1 070             -          -          -     1 070    

From 1 July 2016, Growthpoint Business Park was reclassified from being an office building to an industrial building. 
The comparatives have been restated to reflect this adjustment.
1 The initial accounting for this acquisition was not completed at the time the condensed financial statements were 
  authorised for issue, and is therefore labelled as pro forma. 
  
                                                                                                                 Other          
                                                 South                 Total as           V&A     Global-1       joint         
                                                Africa    Australia    reported    Waterfront        worth    ventures     Total  
                                                    Rm           Rm          Rm            Rm           Rm          Rm        Rm  
Further extracts of statement of financial                                        
position at 31 December 2016                                                                   
Intangible assets                                2 412            -       2 412             -           48           -     2 460    
Listed investments                                 382            -         382             -            -           -       382    
Trade and other receivables                      2 387          583       2 970           222           45          10     3 247    
Cash and cash equivalents                          653          374       1 027            36          860           9     1 932    
Trade and other payables                         1 692          508       2 200          (108)          90          (1)    2 181    
Financial liabilities                           31 548       13 832      45 380          (195)       1 610        (351)   46 444    
Nominal value - interest-bearing liabilities    31 383       13 753      45 136          (195)       1 648        (351)   46 238    
Fair value adjustments                             215           79         294             -          (38)          -       256    
Foreign translation differences                    (50)           -         (50)            -            -           -       (50)   

                                             South Africa     
                                                                       Total                                               Other  
                                                                       South                 Total as           V&A        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 -                                                                                        
31 December 2015                                                                                         
Revenue, excluding straight-line                                                                         
lease income adjustment              1 437     1 710           600     3 747          942       4 689           294            2      4 985    
Property expenses                     (357)     (394)         (131)     (882)        (116)       (998)          (83)          (1)    (1 082)   
Segment results                      1 080     1 316           469     2 865          826       3 691           211            1      3 903    
Material non-cash items                                                                                                                        
Fair value adjustment on                                                                                                    
investment property                    404       315           190       909          489       1 398             -            6      1 404    
Fair value adjustment on                                                                                                    
investment property - NCI                -         -             -         -          261         261             -            -        261    
Total fair value adjustment                                                                                                 
on total investment property           404       315           190       909          750       1 659             -            6      1 665    

                                                                                                        Other             
                                                   South                  Total as            V&A       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                                                    
Other operating expenses and income                 (111)         (42)        (153)            (7)         (1)     (161)   
Finance costs                                     (1 005)        (212)      (1 217)             -          (1)   (1 218)   
Finance and other investment income                  324            3          327              8           -       335    
1 The initial accounting for this acquisition was not completed at the time the condensed financial statements were 
  authorised for issue, and is therefore labelled as pro forma.  
  
  
                                                 South Africa     
                                                                           Total                                               Other  
                                                                           South                 Total as           V&A        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    32 299        11 038    71 550       22 024      93 574         6 761          631    100 966    
Acquisitions                                 -       398           442       840        3 410       4 250             -            -      4 250    
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 loss                        -         -             -         -        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                                                                                                   
at 30 June 2016                         29 210    32 655        11 887    73 752       30 938     104 690         7 766          411    112 867    
Fair value of long-term property                                                                                                      
assets                                  29 210    32 510        11 768    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    

                                                     Total                                                    Other               
                                                     South                    Total as            V&A         joint               
                                                    Africa      Australia     reported     Waterfront      ventures       Total  
                                                        Rm             Rm           Rm             Rm            Rm          Rm 
Further extracts of statement of                                              
financial position at                                                                                
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)

From 1 July 2016, Growthpoint Business Park was reclassified from being an office building to an industrial building. 
The comparatives have been restated to reflect this adjustment.


Notes
For the six months ended 31 December 2016
                                                                        Unaudited             Unaudited            Audited     
                                                                       six months            six months          12 months     
                                                                      31 December           31 December            30 June    
                                                                             2016                  2015               2016     
                                                       Notes                   Rm                    Rm                 Rm    
Note 1: Calculation of distributable earnings                                                                                 
Operating profit                                                            3 919                 3 626              7 785    
Less: Straight-line lease income adjustment                                   (40)                  (88)              (455)   
Finance costs                                                              (1 254)               (1 217)            (2 466)   
Finance and other investment income                                           311                   327                690    
Dividends received on treasury shares                                                    
(accounted for in statement of changes in equity)                              26                    13                 39    
NCI's share of distribution (excluding fair                                              
value adjustments)                                                           (249)                 (202)              (439)   
Distributable income from GOZ retained (including NCI)                          -                     -                (79)   
Realised foreign exchange gain                                                 22                    22                 (9)   
Profit on the sale of Roeland Street Investment                                          
(Pty) Ltd (Stor-Age)                                                            -                     -                 51    
Antecedent dividend received                                                   20                     -                 31    
Taxation (excluding deferred taxation)                                        (67)                  (37)               (76)   
Distributable earnings                                                      2 688                 2 444              5 072    
Total dividend                                             4                2 688                 2 444              5 072    
Taxable dividend (interim)                                                  2 688                 2 444              2 444    
Taxable dividend (final)                                                                                             2 628    
                                                                           Shares                Shares             Shares    
Total shares in issue at the end of period                          2 830 116 406         2 731 427 532      2 786 093 366    
Treasury shares                                                       (28 109 382)          (28 565 013)       (28 529 523)   
Total shares in issue at the end of period                                               
(excluding treasury shares)                                         2 802 007 024         2 702 862 519      2 757 563 843    
Weighted average number of shares in issue                          2 779 720 157         2 697 710 851      2 711 111 433    

                                                                            Cents                 Cents              Cents    
Note 2: Dividend per share                                                   95.0                  89.5              183.8    
Six months ended 31 December                                                 95.0                  89.5               89.5    
Six months ended 30 June                                                                                              94.3    
Basic earnings per share                                   5               158.86                118.25             190.29    
Diluted earnings per share                                 5               158.02                117.54             189.53    
Headline earnings per share                                6               100.12                 59.72             140.57    
Diluted headline earnings per share                                         99.58                 59.36             140.01    

Note 3: Finance and other investment income                                   311                   327                690    
- Investment in joint venture - V&A Waterfront                                235                   198                429    
- V&A Waterfront development funding interest                                  21                    19                 50    
Total V&A Waterfront income                                                   256                   217                479    
Other finance income                                                           55                   100                189    
Listed investments                                                              -                    10                 22    

Note 4: Dividends on treasury shares
The interim dividend of R2 688 million (HY16: R2 444 million) included dividends on treasury shares of R26 million 
(HY16: R13 million). The net interim dividend paid by Growthpoint for accounting purposes is R2 662 million 
(HY16: R2 431 million).

The final dividend of R2 628 million for FY16 included dividends on treasury shares of R26 million. The net dividend 
paid was therefore R2 602 million.

Note 5: 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 6: 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.
                                                                      Unaudited       Unaudited       Audited     
                                                                     six months      six months     12 months     
                                                                    31 December     31 December       30 June    
                                                                           2016            2015          2016     
                                                                             Rm              Rm            Rm    
Basic profit is reconciled to headline earnings as follows:                                                      
Profit after taxation - attributable to equity holders                    4 416           3 190         5 159    
Bargain purchase (including equity-accounted investments)                   (80)             (2)           (6)   
Add back: Net fair value adjustment - investment property                (1 553)         (1 577)       (1 342)   
Fair value adjustment, net of straight-line lease income adjustment      (1 424)         (1 310)        ( 372)   
Fair value adjustment (equity-accounted investments)                         (7)             (6)         (585)   
NCI portion of fair value adjustment                                       (122)           (261)         (385)   
Headline earnings attributable to shareholders                            2 783           1 611         3 811    

Note 7: 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.    

Note 7: Financial Instrument fair value disclosure
Measurement of fair values
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.


                                                                                          Carrying amount
                                           Held for trading                          Designated at fair value                         Total
                                Unaudited     Unaudited      Audited       Unaudited      Unaudited      Audited       Unaudited     Unaudited     Audited         
                               six months    six months    12 months      six months     six months    12 months      six months    six months   12 months         
                              31 December   31 December      30 June     31 December    31 December      30 June     31 December   31 December     30 June         
                                     2016          2015         2016            2016           2015         2016            2016          2015        2016       
                                       Rm            Rm           Rm              Rm             Rm           Rm              Rm            Rm          Rm   
Financial assets measured at  
fair value                                                                                                                                       
Non-current financial assets                                                                                                                                     
Listed investments                      -             -            -             382            452          440             382           452         440       
Long-term loans granted                 -             -            -             467            611          589             467           611         589       
Derivative assets                     347           476          107               -              -            -             347           476         107       
Current assets                                                                                                                                                   
Current portion of long-term  
loans granted                           -             -            -             294              1           16             294             1          16       
Total financial assets        
measured at fair value                347           476          107           1 143          1 064        1 045           1 490         1 540       1 152       
Financial liabilities measured
at fair value Non-current                                                                                                                                 
financial liabilities       
Interest-bearing borrowings             -             -            -          37 404         29 471       34 089          37 404        29 471      34 089       
Derivative liabilities                537           898        1 094               -              -            -             537           898       1 094       
Current financial liabilities                                                                                                                                    
Current portion of            
interest-bearing borrowings             -             -            -           7 439          6 860        4 491           7 439         6 860       4 491       
Total financial liabilities   
measured at fair value                537           898        1 094          44 843         36 331       38 580          45 380        37 229      39 674       
                              

                                                                                          Fair value
                                               Level 1                                      Level 2                                   Level 3
                                Unaudited      Unaudited      Audited      Unaudited      Unaudited      Audited       Unaudited     Unaudited     Audited      
                               six months     six months    12 months     six months     six months    12 months      six months    six months   12 months      
                              31 December    31 December      30 June    31 December    31 December      30 June     31 December   31 December     30 June      
                                     2016           2015         2016           2016           2015         2016            2016          2015        2016     
                                       Rm             Rm           Rm             Rm             Rm           Rm              Rm            Rm          Rm     
Financial assets measured at                                                                                                                     
fair value                                                                                                                                       
Non-current financial assets                                                                                                                                   
Listed investments                      -              -            -              -              -            -             382           452         440     
Long-term loans granted                 -              -            -              -              -            -             467           611         589     
Derivative assets                       -              -            -            347            476          107               -             -           -     
Current assets                                                                                                                                                 
Current portion of long-term                                                                                                                     
loans granted                           -              -            -              -              -            -             294             1          16     
Total financial assets                                                                                                                           
measured at fair value                  -              -            -            347            476          107           1 143         1 064       1 045     
Financial liabilities measured                                                                                                                   
at fair value Non-current                                                                                                                        
financial liabilities                                                                                                                              
Interest-bearing borrowings             -              -            -         37 404         29 471       34 089               -             -           -     
Derivative liabilities                  -              -            -            537            898        1 094               -             -           -     
Current financial liabilities                                                                                                                                  
Current portion of                                                                                                                               
interest-bearing borrowings             -              -            -          7 439          6 860        4 491               -             -           -     
Total financial liabilities                                                                                                                      
measured at fair value                  -              -            -         45 380         37 229       39 674               -             -           -     
                                                                                        
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 following tables show the valuation techniques used in measuring level 2 and level 3 fair values at 
31 December 2016 and 30 June 2016 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               
                                                                                                                  Inter-relationship between unobservable 
Type                    Valuation technique                                          Unobservable inputs          inputs and fair value measurement       

Listed investments      While SESCF is a listed investment, there is an              Not applicable               The estimated fair value would          
                        absence of observable trading prices for its shares.                                      increase/(decrease) if:                 
                        As a result, the fair value of the investment, on                                         - increase/(decrease) in the stabilised
                        31 December 2016, has been determined on the net                                            net operating income; 
                        asset value of SESCF. The net asset value of SESCF                                        - (decrease)/increase in the yield used 
                        includes an independent revaluation of the underlying                                       to calculate the terminal value indication; 
                        investment property, which is the significant asset                                         and
                        per the statement of financial position.                                                  - (decrease)/increase in the discount rate 
                                                                                                                    used to calculate the gross capital value.
                        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 R58 million.                      
   
Long-term loans 
granted
323 Festival Street     Valued by discounting future cash flows using the            Credit margin: 3.00%         Estimated fair value would        
(Pty) Ltd               South African swap curve plus the historic charged           (FY16: 3.00%)                increase/(decrease) if the 
                        credit margin at the dates when the cash flows                                            credit margin were lower/ (higher)
                        will take place.

Rabie Property          Valued by discounting future cash flows using                Not applicable               Not applicable
Group (Pty) Ltd         the floating rate that is applicable to this loan. 

Acucap Unit             Valued by discounting future cash flows using                Not applicable               Not applicable  
Purchase Scheme         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 flows                      Credit margins: 0.45%        Estimated fair value 
borrowings              using the South African swap curve plus                      to 3.60% (FY16: 0.45%        would increase/(decrease) 
                        an appropriate credit margin at the                          to 3.60%)                    if the credit margin were 
                        dates when the cash flows will take place.                                                lower/ (higher)

Derivative assets       Valued by discounting future cash flows                      Not applicable               Not applicable
and liabilities:        using the floating rate that is applicable 
forward exchange        to this loan.
contracts

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

Derivative assets       Valued by discounting future cash flows                      Not applicable               Not applicable  
and liabilities:        using the South African swap curve at the 
cross-currency          dates when the cash flows will take place.
interest rate 
swaps
  
The following table shows a reconciliation from the opening balances to the closing balances for level 3 fair values.         
                                            Gain/(loss)                Acquired/           
                                     in profit for the                 (disposed)          
                                        year and other                       and          
                             Opening     comprehensive       Accrued   advanced/       Closing  
                             balance            income      interest    (settled)      balance  
                                  Rm                Rm            Rm          Rm            Rm  
31 December 2016                                                                                
Listed investments               440               (58)            -           -           382  
Long-term loans granted          605                (4)           35         125           761  
30 June 2016                                                                                    
Listed investments               452               (12)            -           -           440  
Long-term loans granted          612                (1)           16         (22)          605  
31 December 2015                                                                                
Listed investments               380                72             -           -           452  
Long-term loans granted        1 081                (5)           13        (477)          612  

The fair value gains and losses are included in the fair value adjustment line in profit or loss. 
                                                                                    
A 1% decrease in the spread used to determine the fair value of long-term loans would increase the 
value to R765 million (FY16: R609 million). A 1% increase in the spread would decrease the value 
to R757 million (FY16: R601 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)
Rosebank Towers, 15 Biermann Avenue
Rosebank, Johannesburg, 2196
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

The Place, 1 Sandton Drive, Sandton,
Gauteng, 2196, South Africa
Tel: +27 (0) 11 944 6000, Fax: +27 (0) 11 944 6005
PO Box 78949, Sandton, 2146, South Africa
Docex: 48 Sandton Square
info@growthpoint.co.za

http://www.growthpoint.co.za

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