Acquisitions, Oz operations boost Growthpoint’s revenue

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“The increase in revenue for the FY14, compared to FY13 was due to the acquisitions of Abseq and Tiber, as well as revenue from GOZ, resulting from property acquisitions made and a favourable increase in the average exchange rate applied,” [DATA GRT:Growthpoint] said.

“Growthpoint increased its investment in Growthpoint Australia (GOZ) from 3.4 billion rand at FY13 to 5.3 billion rand at FY14. Disposals amounting to 869 million rand were made in the South African portfolio in FY13 and impacted negatively on revenue growth in the current period.”

The Johannesburg Stock Exchange-listed Real Estate Investment Trust (REIT) reported that revenue for the year ending 30 June 2014 increased to 6.6 billion rand from 5.7 billion rand for the same period in 2013.

Operating profit increased from 4.3 billion rand in the 2013 year to 4.9 billion rand in 2014 while net property income increased to 5.2 billion rand from 4.5 billion rand.

(WATCH VIDEO: Growthpoint to acquire Tiber Group portfolio for R6.6bn)

“Apart from the acquisitions of the Abseq and Tiber portfolios, Growthpoint acquired eight portions of land, one industrial property and one office property in the South African portfolio, amounting to 490 million rand during the year,” the company said.

“GOZ acquired an office property in New South Wales for 2.5 billion rand, and six industrial properties in Victoria for a total purchase price of 913 million rand.”

Profit before taxation stood at 6.1 billion rand for the 2014 year, this compared to a loss of 249 million rand in 2013.

Diluted profit per linked unit for 2014 stood at 277.53 cents while headline earnings per linked unit increased to 154.24 cents from 138.67 cents in 2013.

(READ MORE: Property income increase seen in Growthpoint’s HY14 results)

“Due to the challenging, low growth domestic macro-economic environment and rising interest rate cycle, the board of Growthpoint is of the view that the distribution growth rate for FY15 will be between 7.0 per cent and 7.5 per cent,” it said.

“[This] is in line with the average growth rate achieved over the past five years [and] has been based on the company’s budgets for FY15.”