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Summary of audited results for the year ended 30 June 2018
GROWTHPOINT PROPERTIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1987/004988/06)
A Real Estate Investment Trust, listed on the JSE
Share code: GRT ISIN: ZAE000179420
Summary of audited results for the year ended 30 June 2018
Highlights
Investment proposition:
- Sustainable quality of earnings
- 15-year track record of uninterrupted dividend growth - 3.0% above inflation on average
- Underpinned by high-quality physical property assets
- Diversified across international geographies and sectors
- Dynamic and proven management track record
- Best practice corporate governance
- Transparent reporting
- Level 3 BEE contributor
- 6.5% growth in dividend per share - 208.6 cents
- R6.1bn - 10.1% distributable income growth
- 5.4% vacancies - RSA vacancies increased from 4.4% FY17 - strong focus on tenant retention
- R132.9bn - Group property assets
- 35.2% LTV - Gearing levels remain conservative, increased from 35.0% FY17
- Largest South African primary listed REIT
- 23rd largest company in the FTSE/JSE Top 40 Index
- R79.3bn market capitalisation
- R5.9bn average value of shares traded per month
- Baa3 global scale and AAAza national scale rating from Moody�s
- Included in major sustainability indices: FTSE/JSE Responsible Investment Index, Dow Jones Sustainability
Index (DJSI) FTSE4Good Emerging Index
Commentary
Growthpoint is an international property company that provides space to thrive with innovative and
sustainable property solutions.
Introduction
Growthpoint is the largest South African primary JSE-listed REIT with a quality portfolio of 454 directly
owned properties in South Africa (RSA) valued at R78.8bn.
Growthpoint has a 65.5% interest in Growthpoint Properties Australia (GOZ), which owns 57 properties in
Australia valued at R33.6bn. GOZ is listed on the Australian Securities Exchange (ASX).
Growthpoint has six equity-accounted investments, valued at R15.1bn. Growthpoint's 50% share of the
V&A Waterfront (V&A) is the largest of these investments (R7.5bn), followed by a 29.0% stake in London
Stock Exchange (AIM)-listed Globalworth Real Estate Investments (GWI) (R5.1bn) and a 21.6% stake in
Warsaw Stock Exchange-listed (WSE) Globalworth Poland Real Estate (GPRE) (R2.4bn).
Growthpoint also has a listed investment which is an 18.2% shareholding in ASX-listed Industria REIT,
owned by GOZ, valued at R797.9m.
In line with Growthpoint's vision "to be a leading international property company providing space to thrive",
the company's strategy incorporates the optimisation and streamlining of our South African portfolio, the
introduction of new revenue streams via the Funds Management business and trading and development, and
further international diversification. The company has set a three year target of 30%, being the offshore
contribution to both EBIT and book value of property assets.
The company's objective is to grow and nurture a diversified portfolio of quality investment properties, providing
accommodation to a wide spectrum of clients 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 administration and operating overheads, interest on debt and normal
taxation, is distributed to Growthpoint shareholders biannually. Growthpoint's distributions are based on sustainable
income generated from rentals, trading profits and development fees and going forward, distributions and
management fees from its Funds Management business.
Growthpoint is included in the FTSE/JSE Top 40 Index (J200) with a market capitalisation of R79.3bn at 30 June 2018
(FY18). Over this period, on average, 221.5m shares traded per month (FY17: 147.8m). The monthly average
value traded was R5.9bn (FY17: R3.8bn). This makes Growthpoint the most liquid and tradeable way to own commercial
property in South Africa.
The value of Growthpoint's property portfolio is split between South African (inclusive of the V&A) (72.3%) and
international (27.7%) assets. The RSA portfolio represents 84.4% by gross lettable area (GLA), excluding the V&A.
It is well diversified in the three major sectors of commercial property, being retail, office (including the
Healthcare Fund) and industrial. Most of the value of the RSA portfolio is in strong economic nodes within
major metropolitan areas.
For the period under review the net asset value (NAV) of the group increased by 1.5% to 2 556 (FY17: 2 518) cents
per share.
Growth in distributions
Growthpoint delivered growth in distributions per share for FY18 of 6.5% and has declared a final dividend of
107.4 cents per share for the six months ended 30 June 2018 taking the total for the year to 208.6 cents per share.
This growth is in line with the guidance given to the market for FY18.
Distributions increased by R560m or 10.1% to R6.1bn.
Basis of preparation
The summarised consolidated 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
preparing these financial statements are in terms of International Financial Reporting Standards and are
consistent with those applied in the previous annual financial statements.
These summarised consolidated financial statements are extracted from the audited information, but are not
themselves audited. The annual financial statements were audited by KPMG Inc., who expressed an unmodified
opinion thereon. The auditor's report does not necessarily report on all the information contained in these
summarised consolidated financial statements.
Shareholders are therefore advised that in order to obtain a full understanding of the nature of the
auditor's engagement, they should obtain a copy of the auditor's report together with the accompanying
audited consolidated financial statements, both of which are available for inspection at the company's
registered office. The directors of Growthpoint Properties Limited take full responsibility for the
preparation of this report and that the selected financial information has been correctly extracted
from the underlying consolidated financial statements.
Mr G Volkel (CA(SA)), Growthpoint's Financial Director, was responsible for supervising the preparation
of these summarised consolidated financial statements.
Growthpoint Properties Australia (GOZ)
The investment in GOZ was 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 FY18 of R10.16:AUD1 (FY17: R10.04:AUD1).
On 13 July 2017, GOZ acquired an 18.2% stake in the ASX-listed Industria REIT, classified as a listed
investment, for AUD68.1m (R681.0m). The investment has subsequently been fair valued to AUD78.4m (R797.9m).
A deferred tax liability of R2.8bn (FY17: R2.1bn) 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.
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 R9.97:AUD1 (FY17: R10.26:AUD1) for FY18.
The resulting foreign currency translation difference is recognised in other comprehensive income. A non-controlling
interest was raised for the 34.5% (FY17: 34.9%) not owned by Growthpoint.
Included in the FY18 distributable income is R866.9m income from GOZ, (compared to R833.7m for FY17). Included in
normal tax in the statement of profit or loss and other comprehensive income is R160.4m (FY17: R95.6m) that relates
to withholding tax paid on the distributions received from GOZ. The increased withholding tax and stronger Rand had
a negative impact on the distribution received from GOZ.
V&A Waterfront and other equity-accounted investments
The investments in the V&A, GWI, GPRE and the other joint ventures were accounted for in terms of IFRS 11 Joint
Arrangements. The equity-accounting method was used, where the group's share of the profit or loss and other
comprehensive income of these investments were accounted for.
Included in the FY18 distributable finance income is R591.7m from the V&A, (compared to R524.0m for FY17),
R291.0m from GWI (compared to R78m for FY17), and R94.6m from GPRE included for the first time.
Net property income
Gross revenue increased by 2.4% for FY18 compared to FY17. RSA increased revenues by 4.5%, and the GOZ revenues
decreased by 3.9% compared to FY17, as a result of the stronger Rand.
The ratio of property cost to income for the group increased slightly to 21.6% at FY18 from 21.0% at FY17.
For RSA the ratio increased to 23.8% from 23.5% at FY17 and increased for GOZ to 14.2% from 13.0% at FY17.
Fair value adjustments
The revaluation of properties in RSA and GOZ resulted in an increase of R1.6bn (1.4%) to R112.4bn for investment
property (including investment properties classified as held for sale and trading and development). This was driven
mainly by growth in future contractual rental and capitalisation rate compressions. Interest-bearing borrowings and
derivatives were fair valued using the South African or Euro swap curve at FY18, increasing the overall liability by
R314.1m. In addition, losses of R30.7m were realised on the settlement of an interest rate swap by the South
African operations.
These fair value adjustments and other non-distributable items, such as capital items, non-cash charges, deferred
taxation and the net effect of the non-controlling interests portion of the non-distributable items, were
transferred to the non-distributable reserve.
Finance costs
Finance costs increased by 2.5% to R2 574m (FY17: R2 510m). This was partly offset by the proceeds from the
Distribution Re-Investment Plans (DRIPs) offered by Growthpoint. The weighted average interest rate for RSA
borrowings was 9.1% (FY17: 9.2%) (6.9% including Euro loans and cross currency interest rate swaps (CCIRS)
(FY17: 7.4%)). The weighted average maturity of debt increased to 3.7 years (FY17: 3.0 years). Finance costs
for SA increased by 4.3% mainly due to additional interest linked to investments into GWI and GPRE. Finance
costs for GOZ decreased by 3.4% from R566.0m in FY17 to R547.0m in FY18. The interest cover ratio, where
income from the equity-accounted investments and listed investments is included in the operating profit,
increased to 3.7 times at FY18 (FY17: 3.5 times).
Finance income
Finance income increased by 30.6% to R904.0m (FY17: R692.0m). This was due to an increase in dividends from
GWI as well as incremental new investments into GWI and GPRE.
Acquisitions and commitments
Growthpoint acquired one retail property, the remainder of N1 City Mall, for R922.1m, two industrial properties,
for R237.3m and two office properties, for R172.3m during the period for its RSA portfolio. The development and
capital outlay for RSA of R2.1bn (FY17: R2.1bn) was for various projects undertaken in the period, of which
the Discovery Head Office accounted for R302.0m for the completion of the development.
Growthpoint has commitments outstanding for RSA developments totalling R1.6bn (FY17: R2.0bn) of which
144 Oxford Street, Rosebank is the largest at R524.9m. These commitments also include the new Exxaro
Head Office in Centurion at R333.1m.
GOZ acquired one industrial property for R525.9m (AUD48.6m) and it incurred development costs of R103.4m
(AUD10.1m), situated at the Perth Airport.
GOZ has commitments outstanding totalling R2.1bn (AUD204.2m)(FY17: R150.5m (AUD15.0m)). These commitments
include new office developments at the Botanicca Corporate Park in Richmond, Victoria at R996.7m (AUD98.1m)
and a new office acquisition of 836 Wellington Road, West Perth, WA at R927.5m (AUD91.3m).
Growthpoint's 50% development and capital expenditure at the V&A amounted to R295.0m (FY17: R557.6m) for
the period. Growthpoint's share of the V&A's commitments outstanding at FY18 amounted to R110.2m
(FY17: R220.3m). The largest include the Cruise Liner Terminal at R63.6m, Dock Road Junction at R27.6m
and Battery Parkade at R13.4m.
Further investment in GWI
Growthpoint followed its rights in the GWI EUR340.0m capital raise in December 2017 and made an additional
investment of R1.9bn (EUR113.8m) in GWI. This increased Growthpoint's interest to 29.0%.
GWI completed its strategic investment in GPRE resulting in a shareholding of 71.7% in December 2017.
On 22 December 2017, GPRE completed the acquisition of three high-quality properties in Wroclaw, Gdansk and
Katowice in Poland from Echo Polska Properties (EPP) for a total consideration of approximately EUR160.0m.
Acquisition of GPRE
In June 2018, Growthpoint RSA directly acquired a 21.6% stake in the Warsaw Stock Exchange-listed GPRE, which
is classified as an associate, for a consideration of R2.3bn (EUR150.0m). GPRE is a Polish real estate platform
listed since April 2017 on the WSE. GPRE's portfolio consists of attractive premium properties, predominantly
in the office sector, spanning Warsaw and other major cities across Poland, including Wroclaw, Gdansk, Katowice
and Krakov. The acquisition was funded by a five-year USD-denominated Eurobond issued during FY18. A notional
bargain purchase of R490m has been identified as a result of this investment, and is included in fair value
adjustments, capital items and other charges.
The group's share of the results in GPRE and its aggregated assets and liabilities are shown below:
Total assets R18.0bn
Total liabilities R6.8bn
Bargain purchase R9m
Consideration paid R2 340
Percentage held 21.6%
Disposals and held-for-sale assets
Growthpoint disposed of 20 properties in the period (FY17: 17) for R1.5bn (FY17: R1.8bn), achieving a collective
R318.1m (FY17: R401.0m) profit on cost.
At FY18, ten RSA properties (FY17: three) valued at R2.5bn (FY17: R201.9m) and two (FY17: one) GOZ properties
valued at R653m (AUD64.3m) (FY17: R1.0bn (AUD103.5m)) were held for sale.
GOZ disposed of two properties in the period (FY17: seven) with a book value of R1.7bn (AUD169.4m) (FY17: R1.7bn
(AUD166.4m)).
Arrears
Total RSA arrears at FY18 were R68.5m (FY17: R60.4m) with a provision for bad debts of R27.4m (FY17: R26.1m).
Total RSA bad debt expenses were R17.3m (FY17: R13.2m).
Vacancy levels
At FY18 Growthpoint's vacancy levels as a percentage of its total portfolio GLA were:
GLA Vacancy
m2 m2 % %
FY18 FY17 FY18 FY17
Retail 1 390 878 1 405 021 3.6 3.6
Office 1 791 626 1 750 606 8.6 6.8
Industrial 2 254 812 2 266 957 4.0 3.1
RSA total 5 437 316 5 422 584 5.4 4.4
GOZ 1 003 444 1 053 148 1.1 0.8
V&A Waterfront (50%) 231 171 223 016 1.8 0.7
Total/average % 6 671 931 6 698 748 4.7 3.7
Vacancies remained the same in the retail sector but increased across the office and industrial sectors.
Tenant retention remains a priority and we are driving it through various initiatives including the UNdeposit
and SmartMove campaigns, as well as the launch of Growthpoint's resource efficient, sustainable Thrive Portfolio.
Equity raised
During the period Growthpoint issued 82.5m (FY17: 102.4m) shares and raised R2.2bn (FY17: R2.5bn) through
its DRIP programme. The DRIP equity raised was used to finance Growthpoint's investment activities.
Borrowings and net working capital
At FY18, 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, the
equity-accounted investments and the listed investments, was 35.2% (FY17: 35.0%). Growthpoint has consistently
applied its policy for measuring the fair value of long-term interest-bearing loans and derivatives. There were
no changes in valuation techniques, nor were there any transfers between level 1, level 2 and level 3 during
the period.
Growthpoint had unused committed bank facilities of R5.8bn in RSA and R1.7bn (AUD170.0m) in Australia at FY18,
which assures that it can meet its short-term commitments.
Changes in directorate
Mr HS Herman retired as a non-executive director on 14 November 2017.
Ms N Siyotula was appointed as a non-executive director with effect from 1 January 2018.
Ms O Chauke was appointed as executive human resources director on 26 June 2018.
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.
On 18 July 2018, the Group announced that it had entered into a put and call option to acquire 836 Wellington Road,
West Perth, WA. The acquisition is scheduled to settle in October 2018 for a purchase price of AUD91m.
Prospects
The quality and diversity of the underlying South African property portfolio and our strong corporate customer
base, together with our investment in the prestigious V&A, will continue to ensure sustainable, quality
earnings domestically, against the backdrop of a domestic economy where property fundamentals remain weak.
Growthpoint's increased internationalisation has added further geographic exposure to our business. The
contribution to distributable income from GOZ is expected to increase in line with guidance provided by
GOZ and the recent weakness in the Rand would provide further upside. The direct investment into GPRE as
well as the GWI acquisition of GPRE, provided GWI with a Polish footprint which further adds to the
diversification and defensiveness of the investment opportunity. Large multinational tenants continue
to be attracted to both Poland and Romania due to the young, educated, affordable and ambitious labour
force, and as such GWI is expected to perform well. Notwithstanding the positive contributions expected
from Growthpoint's offshore business, investments as well as the V&A, the Growthpoint Board remains
concerned about the overall weakness in the South African economy and is of the view that, subject to
no unforeseen circumstances arising, growth in the dividend per share for the financial year ending
30 June 2019 will be approximately 4.5%. This forecast has not been subject to audit or review by the
company's independent external auditor.
Final dividend
Notice is hereby given of the declaration of the final dividend number 65 of 107.40000 cents per share for
the period ended 30 June 2018. 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 reinvestment alternative is subject to the Board, either itself or through a Board subcommittee
appointed to set the pricing and terms of the share reinvestment alternative, having the discretion to
withdraw the entitlement to elect the share reinvestment alternative should market conditions warrant
such action. A withdrawal of the entitlement to elect the share reinvestment alternative would be
communicated to shareholders before the publication of the finalisation announcement on
Monday, 10 September 2018.
Other information:
- Issued shares at 30 June 2018: 2 970 981 288 ordinary shares of no par value.
- Income tax reference number of Growthpoint: 9375/077/71/7.
- Treasury shares at 30 June 2018: 25 470 569.
Shareholders are advised that the dividend meets the requirements of a "qualifying distribution" for the
purposes of section 25BB of the Income Tax Act, No 58 of 1962 (Income Tax Act). The dividends on the
shares will be deemed to be taxable dividends for South African tax purposes in terms of section 25BB
of the Income Tax Act.
Tax implications for South African resident shareholders
Dividends received by or accrued to South African tax residents must be included in the gross income of such
shareholders and will not be exempt from 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 85.92000 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 to arrange for the
abovementioned documents to be submitted prior to payment of the dividend if such documents have not already been
submitted.
Salient dates and times 2018
Circular and form of election posted to shareholders and announced on SENS Monday, 3 September
Last date for Growthpoint to withdraw the entitlement for shareholders
to elect to participate in the share reinvestment alternative before the
publication of the announcement of the share alternative issue price and
finalisation information on SENS Monday, 10 September
Announcement of share reinvestment alternative issue price and finalisation
information published on SENS Tuesday, 11 September
Last day to trade (LDT) cum dividend Tuesday, 18 September
Shares to trade ex dividend Wednesday, 19 September
Listing of maximum possible number of share alternative shares
commences on the JSE Friday, 21 September
Last day to elect to receive the share alternative (no late forms of election
will be accepted) at 12:00 (South African time) Friday, 21 September
Record date Friday, 21 September
Announcement of results of cash dividend and share reinvestment
alternative published on SENS Tuesday, 25 September
Cheques posted to certificated shareholders and accounts credited by
CSDP or broker to dematerialised shareholders electing the cash alternative on Tuesday, 25 September
Share certificates posted to certificated shareholders and accounts
credited by CSDP or broker to dematerialised shareholders electing
the share reinvestment alternative on Thursday, 27 September
Adjustment to the maximum number of shares listed on or about Friday, 28 September
Notes:
1. Shareholders electing the share reinvestment 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, 19 September 2018 and the close of trade on Friday, 22 September 2018.
By order of the Board
Growthpoint properties Limited
29 August 2018
Directors
JF Marais (Chairman), LN Sasse* (Group Chief Executive Officer), EK de Klerk* (Chief Executive Officer South Africa),
G Volkel* (Group Financial Director), O Chauke* (Human Resources Director), MG Diliza, PH Fechter, LA Finlay,
JC Hayward, SP Mngconkola, R Moonsamy, NBP Nkabinde, N Siyotula, FJ Visser
*Executive
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
Registered office
The Place, 1 Sandton Drive, Sandton, 2196
PO Box 78949, Sandton, 2146
Transfer Secretary
Computershare Investor Services (Pty) Limited
(Registration number 2004/003647/07)
Rosebank Towers, 15 Biermann Avenue, Rosebank, Johannesburg, 2196
PO Box 61051, Marshalltown, 2107
Company Secretary
RA Krabbenhoft
Sponsor
Investec Bank Limited
(Registration number 1969/004763/06)
100 Grayston Drive, Sandown, Sandton, 2196
PO Box 785700, Sandton, 2146
Statement of profit or loss and other comprehensive income
For the year ended 30 June 2018
2018 2017
Notes Rm Rm
Revenue, excluding straight-line lease income adjustment 10 976 10 716
Straight-line lease income adjustment (50) 39
Total revenue 10 926 10 755
Property-related expenses (2 366) (2 245)
Net property income 8 560 8 510
Other administrative and operating overheads (437) (416)
Operating profit 8 123 8 094
Equity-accounted investment profit - net of tax 711 369
Fair value adjustments, capital items and other charges 1 407 1 850
Finance and other investment income 1 904 692
Finance expense (2 574) (2 510)
Profit before taxation 8 571 8 495
Taxation (666) (48)
Profit for the year 7 905 8 447
Other comprehensive income
Items that may subsequently be reclassified to profit or loss
Translation of foreign operations 241 (1 571)
Total comprehensive income for the year 8 146 6 876
Profit attributable to: 7 905 8 447
Owners of the company 6 663 7 524
Non-controlling interests 1 242 923
Total comprehensive income attributable to: 8 146 6 876
Owners of the company 6 803 6 507
Non-controlling interests 1 343 369
Cents Cents
Basic earnings per share 299.14 267.72
Diluted earnings per share 228.00 266.21
Statement of financial position
As at 30 June 2018
2018 2017
Rm Rm
Assets
Cash and cash equivalents 2 320 613
Trade and other receivables 3 645 3 214
Investment property classified as held for sale 3 180 1 241
Investment property held for trading and development 131 -
Derivative assets 476 356
Listed investments 801 226
Fair value of property assets 109 046 108 201
Fair value of investment property for accounting purposes 106 543 105 641
Straight-line lease income adjustment 2 503 2 560
Long-term loans granted 370 709
Equity-accounted investments 15 096 9 920
Equipment 12 15
Intangible assets 2 279 2 362
Total assets 137 356 126 857
Liabilities and Equity
Liabilities
Trade and other payables 2 305 2 572
Derivative liabilities 741 587
Taxation payable 72 44
Interest-bearing borrowings 48 234 42 568
Deferred tax liability 2 844 2 332
Total liabilities 54 196 48 103
Shareholders' interests 75 273 72 045
Share capital 47 092 44 876
Retained income 3 191 2 886
Other reserves 24 990 24 283
Non-controlling interest 7 887 6 709
Total liabilities and equity 137 356 126 857
Statement of changes in equity
For the year ended 30 June 2018
Non-distributable reserves (NDR)
Other
fair
Fair value
value adjust-
Share Foreign adjust- ments and
capital currency ment on non-
net of translation Amortisation invest- distri-
treasury reserve of intangible Bargain ment butable
shares (FCTR) assets purchase property items
Rm Rm Rm Rm Rm Rm
Balance at 30 June 2016 42 329 2 602 863 236 22 174 (2 755)
Total comprehensive income
Profit after taxation - - - - - -
Other comprehensive income - (1 017) - - - -
Transactions with owners recognised
directly in equity:
Contributions by and distributions
to owners:
Shares issued 2 533 - - - - -
Transfer non-distributable items to NDR - - (71) 78 1 855 326
Share-based payment transactions 14 - - - - -
Dividends declared - - - - - -
Changes in ownership interest:
Rights issue and acquisitions - GOZ - (13) - - - -
Balance at 30 June 2017 44 876 1 572 792 314 24 029 (2 429)
Total comprehensive income
Profit after taxation - - - - - -
Other comprehensive income - 140 - - - -
Transactions with owners recognised
directly in equity:
Contributions by and distributions
to owners:
Shares issued 2 155 - - - - -
Transfer non-distributable items to NDR - - (71) - 1 007 (429)
Share-based payment transactions 61 - - - - -
Dividends declared - - - - - -
Changes in ownership interest:
Change of ownership in Healthcare - - - - - -
Rights issue and acquisitions - GOZ - 3 - - - -
Balance at 30 June 2018 47 092 1 715 721 314 25 036 (2 858)
Dividend per share
Statement of changes in equity (continued)
For the year ended 30 June 2018
Non-distributable reserves (NDR)
Fair
value
adjust-
Share- ment Non-
based on listed Total Retained Share- controlling
payments Reserves invest- other earnings holders' interest Total
reserve with NCI ments reserves (RE) interest (NCI) equity
Rm Rm Rm Rm Rm Rm Rm Rm
Balance at 30 June 2016 170 (12) 60 23 338 2 628 68 295 5 871 74 166
Total comprehensive income
Profit after taxation - - - - 7 524 7 524 923 8 447
Other comprehensive income - - - (1 017) - (1 017) (554) (1 571)
Transactions with owners recognised
directly in equity:
Contributions by and distributions
to owners:
Shares issued - - - - - 2 533 - 2 533
Transfer non-distributable items to NDR 28 - (214) 2 002 (2 002) - - -
Share-based payment transactions (27) - - (27) - (13) - (13)
Dividends declared - - - - (5 264) (5 264) (502) (5 766)
Changes in ownership interest:
Rights issue and acquisitions - GOZ - - - (13) - (13) 971 958
Balance at 30 June 2017 171 (12) (154) 24 283 2 886 72 045 6 709 78 754
Total comprehensive income
Profit after taxation - - - - 6 663 6 663 1 242 7 905
Other comprehensive income - - - 140 - 140 101 241
Transactions with owners recognised
directly in equity:
Contributions by and distributions
to owners:
Shares issued - - - - - 2 155 - 2 155
Transfer non-distributable items to NDR (40) - 63 530 (530) - - -
Share-based payment transactions 34 - - 34 - 95 - 95
Dividends declared - - - - (5 828) (5 828) (513) (6 341)
Changes in ownership interest:
Change of ownership in Healthcare - - - - - - 285 285
Rights issue and acquisitions - GOZ - - - 3 - 3 63 66
Balance at 30 June 2018 165 (12) (91) 24 990 3 191 75 273 7 887 83 160
2018 2017
Cents Cents
Dividend per share 208.6 195.8
Statement of cash flows
For the year ended 30 June 2018
2018 2017
Rm Rm
Cash from operations 8 060 7 580
Interest paid (2 574) (2 438)
Finance and other investment income received 312 105
Taxation paid (126) (84)
Distribution to shareholders (6 341) (5 766)
Cash flows from operating activities (669) (603)
Net cash from investing activities (5 241) (8 637)
Net cash from financing activities 7 386 8 993
Effect of exchange rate changes on cash and cash equivalents 231 (41)
Movement in cash and cash equivalents 1 707 (288)
Cash and cash equivalents at beginning of year 613 901
Cash and cash equivalents at end of year 2 320 613
Segmental analysis
For the year ended 30 June 2018
Segmental Analysis
The group determines and presents operating segments based on the information that is provided internally
to the Group's Executive Management Committee (Group Exco), the Group's operating decision-making forum.
The group comprises six segments, namely Retail, Office, Industrial, Growthpoint Australia, V&A Waterfront
and Central and Eastern Europe. Each operating segment's operating results are reviewed regularly by Group
Exco to make decisions about resources to be allocated to the segment and assess its performance, and for
which discrete financial information is available.
Segment Brief description of segment
Retail The Growthpoint retail portfolio consists of 50 properties, comprising
shopping centres with the balance being vacant land or standalone
single-tenanted properties. It includes regional, community, neighbourhood,
speciality and small regional shopping centres as well as retail warehouses.
Office The Growthpoint office portfolio consists of 179 properties which includes
high rise and low rise offices, office parks, office warehouses, hospitals
as well as mixed-use properties comprising both office and retail.
Industrial The Growthpoint industrial portfolio consists of 225 properties which includes
warehousing, industrial parks, retail warehousing, motor-related outlets, low
and high-grade industrial, high-tech industrial as well as mini, midi and
maxi units.
Growthpoint Australia The GOZ portfolio consists of 57 properties which includes both industrial
and office properties, all situated in Australia.
V&A Waterfront The V&A Waterfront is a 122 hectare mixed-use property development situated
in and around the historic Victoria and Alfred Basin, which formed Cape
Town's original harbour, with Table Mountain as its backdrop. Its properties
include retail, office, fishing and industrial, hotel and residential as well
as undeveloped bulk.
Central and Eastern Europe The Central and Eastern Europe portfolio consists of 48 properties which include
mostly modern A-grade office properties and industrial properties as well as a
residential property complex.
Geographic segments
In addition to the main reportable segments, the group also includes a geographical analysis of net property
income, excluding straight-line lease income adjustment and investment property.
The following geographic segments have been identified:
South Africa
Australia
Central and Eastern Europe
V&A Waterfront
Segmental analysis (continued)
2018
Central
Total and
South Total as V&A Eastern
Retail Office Industrial Africa Australia reported Waterfront Europe Total
Rm Rm Rm Rm Rm Rm Rm Rm Rm
Profit or loss disclosures
Revenue excluding
straight-line
lease adjustment 3 244 3 779 1 420 8 443 2 533 10 976 813 207 11 996
Property-related expenses (834) (848) (325) (2 007) (359) (2 366) (242) (76) (2 684)
Net property income 2 410 2 931 1 095 6 436 2 174 8 610 571 131 9 312
Other administrative and
operating overheads (309) (128) (437) (30) (28) (495)
Equity-accounted investment
profits - net of tax 711 - 711 - - 711
Fair value adjustment on
investment property (439) 53 250 (136) 1 671 1 535 375 100 2 010
Fair value adjustments
(other than
investment property) (120) (113) (233) - - (233)
Capital items and
other charges (190) 245 55 87 (4) 138
Finance and investment
income 901 3 904 62 5 971
Finance expense (2 027) (547) (2 574) (24) (16) (2 614)
Consolidated profit
before taxation 5 266 3 305 8 571 1 041 188 9 800
Assets
Cash and cash equivalents 2 000 320 2 320 248 2 708 5 276
Trade and other receivables 2 966 679 3 645 75 484 4 204
Investment property
classified
as held for sale - 2 187 340 2 527 653 3 180 - - 3 180
Investment property
held for
trading and development - 131 - 131 - 131 - - 131
Derivative assets 476 - 476 - - 476
Listed investments 801 - 801 - - 801
Fair value of
property assets 29 878 33 134 13 094 76 106 32 940 109 046 9 141 11 564 129 751
Long-term loans granted 370 - 370 - - 370
Equity-accounted
investments 15 096 - 15 096 - 40 15 136
Equipment 3 9 12 - - 12
Intangible assets 2 279 - 2 279 - 57 2 336
Total assets 102 755 34 601 137 356 9 464 14 853 161 673
Liabilities
Trade and other payables 1 665 640 2 305 188 249 2 742
Derivative liabilities 671 70 741 - - 741
Taxation payable - 72 72 - - 72
Interest-bearing borrowings 35 699 12 535 48 234 170 6 594 54 998
Deferred tax liability 2 838 6 2 844 - 538 3 382
Total liabilities 40 873 13 323 54 196 358 7 381 61 935
2017
Central
Total and
South Total as V&A Eastern
Retail Office Industrial Africa Australia reported Waterfront Europe Total
Rm Rm Rm Rm Rm Rm Rm Rm Rm
Profit or loss disclosures
Revenue excluding
straight-line
lease adjustment 3 099 3 632 1 348 8 079 2 637 10 716 726 140 11 582
Property-related expenses (792) (819) (290) (1 901) (344) (2 245) (204) (52) (2 501)
Net property income 2 307 2 813 1 058 6 178 2 293 8 471 522 88 9 081
Other administrative and
operating overheads (289) (127) (416) (24) (16) (456)
Equity-accounted investment
profits - net of tax 369 - 369 - - 369
Fair value adjustment on
investment property 481 293 332 1 106 848 1 954 492 4 2 450
Fair value adjustments
(other than
investment property) 35 4 39 - - 39
Capital items and
other charges (91) (13) (104) (1) 8 (97)
Finance and investment
income 1 521 (829) 692 28 4 724
Finance expense (1 944) (566) (2 510) - (108) (2 618)
Consolidated profit
before taxation 6 885 1 610 8 495 1 017 (20) 9 492
Assets
Cash and cash equivalents 298 315 613 81 1 139 1 833
Trade and other receivables 2 649 565 3 214 73 46 3 333
Investment property
classified
as held for sale 173 - 29 202 1 039 1 241 - - 1 241
Investment property
held for
trading and development - - - - - - - - -
Derivative assets 356 - 356 - - 356
Listed investments 226 - 226 - - 226
Fair value of
property assets 29 415 34 732 12 557 76 704 31 497 108 201 8 705 4 200 121 106
Long-term loans granted 709 - 709 - - 709
Equity-accounted
investments 9 920 - 9 920 - 8 9 928
Equipment 3 12 15 - - 15
Intangible assets 2 362 - 2 362 - 52 2 414
Total assets 93 429 33 428 126 857 8 859 5 445 141 161
Liabilities
Trade and other payables 1 829 743 2 572 111 51 2 734
Derivative liabilities 523 64 587 - - 587
Taxation payable (4) 48 44 6 - 50
Interest-bearing borrowings 29 492 13 076 42 568 195 559 43 322
Deferred tax liability 2 332 - 2 332 - 74 2 406
Total liabilities 34 172 13 931 48 103 312 684 49 099
Distributable earnings reconciliation
2018 2017
Rm Rm
Revenue, excluding straight-line lease income adjustment 10 976 10 716
Property-related expenses (2 366) (2 245)
Other administrative and operating overheads (437) (416)
Net interest (1 670) (1 818)
Finance and other investment income 904 692
Finance expense (2 574) (2 510)
Antecedent dividends 33 45
GWI dividend declared after year-end, based on FY18 earnings 157 -
GPRE dividend declared after year-end, based on FY18 earnings 64 -
Non-controlling portion of distribution
(excluding fair value adjustments) - GOZ (513) (502)
Distributable income from GOZ retained (including NCI's portion) (22) (165)
Realised foreign exchange gain 46 31
Current normal taxation (160) (98)
Distributable earnings 6 108 5 548
Distributions
Total dividend
Distributable earnings Rm 6 108 5 548
Actual net number of shares in issue 2 945 510 719 2 860 702 595
Distribution per share 208.6 195.8
Interim taxable dividend Cents 101.2 95.0
Final taxable dividend Cents 107.4 100.8
Number of shares
2018 2017
Shares issued during the year:
Issued ordinary shares at the beginning of year 2 888 462 582 2 786 093 366
Effect of shares issued 82 518 706 102 369 216
Share in issue at end of year 2 970 981 288 2 888 462 582
Effect of treasury shares held (25 470 569) (27 759 987)
Net shares in issue at end of year 2 945 510 719 2 860 702 595
2018 2017
Cents Cents
Net asset value*
Net asset value per share 2 556 2 518
Tangible net asset value per share 2 575 2 517
Net asset value per share is reconciled to tangible
net asset value per share as follows:
Rm Rm
Net asset value attributable to shareholders 75 273 72 045
Less: Net effect of business acquisitions and other intangibles 565 (30)
Intangible assets (2 279) (2 362)
Deferred tax liability 2 844 2 332
Tangible net asset value 75 838 72 015
* This information has not been audited by Growthpoint's independent external auditor.
Key reporting ratios*
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.
Group
2018 2017
% %
Property cost-to-income ratio
Gross 31.11 30.42
Net 16.64 16.56
Based on IFRS reported figures 21.56 20.95
Property cost-to-income ratio is based on the total property-related
expenses divided by the revenue, excluding straight-line lease
income adjustments. The figures are adjusted for gross, net and
IFRS reported expenses.
Operating cost-to-income ratio
Gross 4.17 4.15
Net 3.98 3.88
Based on IFRS reported figures 3.98 3.88
Operating cost-to-income ratio is based on the total operating
expenses divided by the revenue, excluding straight-line lease
income adjustments. The figures are adjusted for gross, net and
IFRS reported expenses.
Total cost-to-income ratio
Gross 34.72 34.00
Net 20.87 20.66
Based on IFRS reported figures 25.54 24.83
Total cost-to-income ratio is based on the total expenses divided
by the revenue, excluding straight-line lease income adjustments.
The figures are adjusted for gross, net and IFRS reported expenses.
Interest-cover ratio 3.65 3.51
Interest-cover ratio (excluding GOZ) 3.62 3.43
Interest-cover ratio for Growthpoint is based on the operating profit
excluding straight-line lease income adjustment plus the investment
income from equity-accounted investments divided by the finance costs,
after deducting finance income from banks and long-term loans.
Loan-to-value ratio 35.17 34.98
Loan-to-value ratio (excluding GOZ) 35.37 33.40
Loan-to-value ratio for Growthpoint is based on the nominal value of debt (net of cash), divided by the
fair value of property assets, including investment property held for sale, equity-accounted
investments and listed investments.
* This information has not been audited by Growthpoint's independent external auditor.
Notes
Note 1: Finance and other investment income
2018 2017
Rm Rm
Finance income
Banks 45 23
Long-term loans 46 19
Other 54 -
145 42
Investment income
Dividends received from equity-accounted investments 759 605
Other - 45
759 650
Total finance and investment income 904 692
Note 2: Headline earnings per share
Reconciliation between basic earnings, diluted earnings and headline earnings
Gross Total
2018 2017 2018 2017
Rm Rm Rm Rm
Profit for the year 6 663 7 524
Bargain purchase 1 407* 1 850* (9) (78)
Fair value adjustments on investment property 1 407* 1 850* (2 006) (2 397)
Fair value adjustment: net of straight-lining
lease adjustment (1 290) (1 993)
NCI portion of fair value adjustments (716) (404)
Headline, basic and diluted earnings 4 648 5 049
* Both the bargain purchase and fair value adjustment on investment property are included in the
"fair value adjustments, capital items and other charges" line item on the face of the statement of
profit or loss and other comprehensive income.
Classification of financial assets and liabilities
Loans and Outside
Held at Designated other scope
fair value at fair value receivables of IAS 39 Total
Rm Rm Rm Rm Rm
Assets
2018
Cash and cash equivalents - - 2 320 - 2 320
Trade and other receivables - - 2 836 809 3 645
Derivative assets 476 - - - 476
Listed investments - 801 - - 801
Long-term loans granted - 370 - - 370
2017
Cash and cash equivalents - - 613 - 613
Trade and other receivables - - 2 426 788 3 214
Derivative assets 356 - - - 356
Listed investments - 226 - - 226
Long-term loans granted - 709 - - 709
Liabilities
2018
Trade and other payables - - 2 074 231 2 305
Derivative liabilities 741 - - - 741
Taxation payable - - - 72 72
Interest-bearing borrowings - 48 234 - - 48 234
Deferred tax liabilities - - - 2 844 2 844
2017
Trade and other payables - - 2 302 270 2 572
Derivative liabilities 587 - - - 587
Taxation payable - - - 44 44
Interest-bearing borrowings - 42 568 - - 42 568
Deferred tax liabilities - - - 2 332 2 332
Fair value estimation
Fair value measurement of assets and liabilities
The table below includes only those assets and liabilities that are measured at fair value including
non-recurring items measured at fair value:
2018 2017
Fair value Level 1 Level 2 Level 3 Fair value Level 2 Level 3
Rm Rm Rm Rm Rm Rm Rm
Assets
Recurring fair
value measurement
Fair value of
property assets 109 046 - - 109 046 108 201 - 108 201
Listed investments 801 797 - 4 226 - 226
Long-term loans
granted 370 - - 370 709 - 709
Derivative assets 476 - 252 224 356 249 107
Non-recurring fair
value measurement
Non-current assets
held for sale 3 180 - - 3 180 1 241 - 1 241
Total assets measured
at fair value 113 873 797 252 112 824 110 733 249 110 484
Liabilities
Recurring fair
value measurement
Interest-bearing
borrowings 48 234 5 772 42 462 - 42 568 42 568 -
Derivative liabilities 741 - 511 230 587 556 31
Total liabilities
measured at fair value 48 975 5 772 42 973 230 43 155 43 124 31
The carrying amount of assets and liabilities that are not measured at fair value reasonably
approximate their fair value due to their short-term nature. These include trade and other
receivables, cash and cash equivalents and trade and other payables.
Movement in level 3 instruments
2018
Property Listed Long-term
assets invest- loans Derivative Derivative
Rm ments granted assets liabilities
Rm Rm Rm Rm
Opening balance 109 442 226 709 107 (31)
Gain/(loss) from
fair value adjustments
and translation of
foreign operations 2 005 - 12 117 (199)
Accrued interest - - 71 - -
Acquisitions 3 978 - - - -
Disposals (3 199) (222) - - -
Advance - - 77 - -
Settlements - - (499) - -
Closing balance 112 226 4 370 224 (230)
Movement in level 3 instruments (continued)
2017
Listed Long-term Derivative Derivative
Property invest- loans assets liabilities
assets ments granted Rm Rm
Rm Rm Rm
Opening balance 104 690 440 605 - -
Gain/(loss) from
fair value adjustments
and translation of
foreign operations (1 086) (214) (25) 107 (31)
Accrued interest - - 78 - -
Acquisitions 9 552 - - - -
Disposals (3 714) - - - -
Advance - - 463 - -
Settlements - - (412) - -
Closing balance 109 442 226 709 107 (31)
Fair value estimation
Valuation process
A number of the group's accounting policies and disclosures require the measurement of fair values,
for both financial and non-financial assets and liabilities. The Group has an established control
framework with respect to the measurement of fair values. This includes a valuation team that has
overall responsibility for overseeing all significant fair value measurements, including level 3
fair values, and reports directly to the Financial Director.
The valuation team regularly reviews significant unobservable inputs and valuation adjustments.
If third-party information, such as broker quotes or pricing services, is used to measure fair
values, then the valuation team assesses the evidence obtained from the third parties to support
the conclusion that such valuations meet the requirements of IFRS, including the level in the
fair value hierarchy in which such valuations should be classified.
Significant valuation issues are reported to the Group's Audit Committee.
When measuring the fair value of an asset or a liability, the group uses observable market data as
far as possible. Fair values are categorised into different levels in a fair value hierarchy based
on the inputs used in the valuation techniques as follows:
- Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
- Level 2: inputs other than quoted prices included in level 1 that are observable for the asset or
liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
- Level 3: inputs for the asset or liability that are not based on observable market data
(unobservable inputs).
If the inputs used to measure the fair value of an asset or a liability fall into different levels of
the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same
level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.
Valuation techniques and significant inputs
Level 2 instruments
Interest-bearing borrowings
Valuation Significant unobservable
Description technique inputs
Interest-bearing borrowings Valued by discounting future cash Credit margins: 0.46% to 3.60%
flows using the South African swap (FY17: 0.43% to 3.60%)
curve plus an appropriate credit
margin at the dates when the cash
flows will take place.
The estimated fair value would increase/(decrease) if the credit margin were lower/(higher).
Derivative instruments
Valuation Significant unobservable
Description technique inputs
Forward exchange contracts Valued by discounting the forward Not applicable
rates applied at year end to the
open hedged positions.
Interest rate swaps Valued by discounting the future cash Not applicable
flows using the South African swap
curve at the dates when the cash
flows will take place.
Cross-currency interest rate swaps Valued by discounting the future Not applicable
cash flows using the basis swap curve of
the respective currencies at the dates
when the cash flows will take place.
Valuation techniques and significant inputs
Level 3 instruments
In terms of the group's policy, at least 75% of the fair value of investment properties should be
determined by an external, independent valuator, having appropriate recognised professional
qualifications and recent experience in the location and category of the property being valued.
The balance of the South African portfolio was valued by Growthpoint's qualified internal valuers.
The South African properties were valued at FY18 using the discounted cash flow of future income
streams method by the following valuers who are all registered valuers in terms of section 19 of
the Property Valuers Professional Act, No 47 of 2000:
Mills Fitchet PWV PG Mitchell NDip (Prop Val), MIV (SA), CIEA, professional valuer
Mills Fitchet KZN T Bate MSc, BSc Land Econ (UK), MRICS, MIV (SA), professional valuer
Eris Property Group
(Pty) Limited C Everatt BSc (Hons) Estate Management, MRICS, MIV (SA), professional valuer
Jones Lang LaSalle J Karg BSc, MRICS, MIV (SA), professional valuer
Knight Frank A Arbee NDip (Reas Estate in Prop Val), associate professional valuer
Rode & Associates K Scott BCom (Hons), professional valuer
Spectrum PL O'Connell NDip (Prop Val), MRICS, professional valuer
Sterling AS Greybe-Smith BSc (Hons), MIV (SA), professional associate valuer
Wolffs Valuation
Services (Pty) Limited S Wolffs NDip (Prop Val), professional associate valuer
The Australian properties were valued at FY18 using the discounted cash flow of future income streams
method by Savills, Jones Lang LaSalle, Urbis, Knight Frank, CBRE, M3property and Colliers who are all
members of the Australian Property Institute and certified practising valuers.
At the reporting date, the key assumptions and unobservable inputs used by the group in determining
fair value were in the following ranges for the group's portfolio of properties:
Investment property
Significant unobservable inputs and range of estimates used
Exit capitalisation Capitalisation
Description Valuation technique Discount rate(%) rate(%) rate(%)
Retail sector Discounted cash 12.8 - 18.0 6.8 - 12.0 6.8 - 13.0
Office sector flow model 12.8 - 16.0 7.8 - 10.0 7.5 - 10.0
Industrial sector 13.5 - 18.0 8.0 - 14.0 8.0 - 13.5
GOZ office 6.8 - 9.0 6.0 - 8.5 5.3 - 14.4
GOZ industrial 6.8 - 8.8 6.0 - 10.0 5.8 - 8.8
The estimated fair value would increase/(decrease) if the expected market rental growth was
higher/(lower), expected expense growth was lower/(higher), the vacant periods were shorter/(longer),
the occupancy rate was higher/(lower), the rent-free periods were shorter/(longer), the discount rate
was lower/(higher) and/or the reversionary capitalisation rate was lower/(higher).
Long-term loans granted
Valuation Significant unobservable
Description technique inputs
Acucap Unit Purchase Scheme Valued by discounting future cash Counterparty credit risk
flows using the South African swap
curve at the dates when the cash
flows will take place.
Roeland Street Valued by discounting future cash Counterparty credit risk
Investment 2 (Pty) Limited flows using a floating rate that is
applicable to this loan including
an estimated counterparty credit
spread.
Derivative assets and liabilities
Valuation Significant unobservable
Description technique inputs
Cross-currency interest rate swaps Valued by discounting the future Credit curve
cash flows using the basis swap
curve of the respective currencies
at the dates when the cash flow
will take place.
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
Date: 29/08/2018 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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