Growthpoint sees growth in international business

Growthpoint, one of South Africa's largest property companies, is anticipating positive growth from its international operations while expressing concerns about the overall weakness in the South African economy. The company is expecting the growth in dividends per share for the next year to be around 4.5 percent, a slight decrease from the 6.5 percent growth seen in the previous year. CEO Norbert Sasse discussed the property giant's future prospects following the release of its full-year results. Sasse acknowledged that while there was initial optimism in the market earlier in the year, the positivity has waned over the last few months. The company's business is closely tied to the overall economy, and Sasse noted that they are not seeing significant investment or a shift in attitude among corporate customers when it comes to signing new leases. Many companies are opting for shorter-term leases and are cautious in their decision-making. One of the key concerns Sasse highlighted was the uncertainty surrounding critical policies like land expropriation without compensation. While he expressed optimism that a sensible solution would be negotiated and implemented transparently, he emphasized the need for clarity in order to attract both domestic and foreign investors. Despite the challenges in the domestic market, Growthpoint has been actively increasing its presence in international markets. The company has had success in Australia, where it has seen significant returns and dividend growth. Investments in Eastern Europe, particularly in Romania and Poland, have also been promising, with strong property fundamentals and attractive yield spreads. In light of the difficult operating environment in South Africa, Sasse stressed the importance of protecting and growing shareholder value. While the company faces arrears and bad debts ticking up, Sasse highlighted the strength of Growthpoint's domestic business and its efforts to complement it with international strategies. Overall, despite the tough economic conditions in South Africa, Growthpoint remains optimistic about its international operations and is focused on adapting to the challenges in the local market while seeking growth opportunities abroad.