Growthpoint Properties' headquarters in Sandton. Picture: FINANCIAL MAIL
Growthpoint Properties' headquarters in Sandton. Picture: FINANCIAL MAIL

Growthpoint Properties, which is SA’s largest real-estate group, has reported 6.5% growth in full-year distributions to R2.09 per share, in line with its guidance.

But the company trimmed down its forecast for 2019 distributions, due in part to weak South African economy.

Growthpoint has 454 directly owned properties in SA valued at R78.8bn, according to its results statement released on Thursday, which makes it sensitive to the performance of the local economy.

It also has a 65.5% interest in Growthpoint Properties Australia, which owns 57 properties in Australia valued at R33.6bn. Additionally, the group own stakes in several other entities, which gives it a diversified global reach.

Growthpoint’s 50% share of the V&A Waterfront is the largest of these investments, followed by a 29% stake in Globalworth Real Estate Investments and a 21.6% stake in Globalworth Poland Real Estate.

Total distributable income was up 10% (R560m), to R6bn in the year to June, from the matching period a year ago.

Net property income rose marginally to R8.56bn, from R8.51bn while vacancies increased to 4.7% from 3.7%. The ratio of property cost to income for the group increased slightly to 21.6% from 21.0%.

Growthpoint expects to its total distribution to rise 4.5% in the 2019 financial year.

The share price was marginally lower (0.23%) at R26.11 in early trade on the JSE, valuing Growthpoint at R77.54bn.