Growthpoint withholds final dividend due to COVID-19 uncertainties
Growthpoint’s headline earnings have sunk by 49.4 per cent, as COVID-19 leaves havoc on its trail. All three of the company’s domestic businesses were impacted by the wreckage.
Wed, 09 Sep 2020 16:03:10 GMT
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AI Generated Summary
- Growthpoint's headline earnings have dropped by 49.4 percent due to the effects of the COVID-19 pandemic.
- The company's decision to defer the final dividend reflects the uncertainties in the current economic landscape.
- Challenges include increased bad debts and arrears as tenants struggle to meet rental obligations in a weakened economy.
South Africa's largest property group Growthpoint has been hit hard by the economic fallout of the COVID-19 pandemic, with its headline earnings plummeting by 49.4 percent. The company's CEO, Norbert Sasse, recently discussed the challenges faced by the business in an interview with CNBC Africa. Sasse revealed that all three of the company's domestic businesses - retail, office, and industrial - were severely impacted by the pandemic-induced lockdowns and restrictions. Growthpoint has deferred a decision on a final dividend to later this year, reflecting the uncertainties and challenges ahead for the property sector. Sasse highlighted the company's efforts to support its customers during this difficult time, with significant discounts and deferrals provided to alleviate financial burdens. However, the increase in bad debts and arrears remains a pressing concern, with tenants struggling to meet their rental obligations as business activity remains below pre-pandemic levels. The CEO emphasized the importance of adapting to the 'new normal' in the commercial property market, with trends like remote work and online retail shaping the future of the industry. Despite the challenges, Sasse remains cautiously optimistic about the company's prospects, focusing on resilience and strategic decision-making in the face of uncertainty.
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