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Growthpoint Properties, a large property owner in the retail, office, industrial, and trading and development sectors, says its mixed-use portfolio at the V&A Waterfront in Cape Town is performing exceptionally well.
In its annual results for the year ended 30 June 2023, Growthpoint said that the V&A – which it jointly owns with the Government Employees Pension Fund – performed exceptionally following the return of tourists.
“The V&A has rebounded strongly with a stellar performance in FY23 on the back of the recovery in both domestic and international tourism with a 21.5% increase in distributable income received for FY23 of R688.4 million from the V&A (FY22: R566.7 million),” the group said.
Across all of the group’s operations, revenue jumped by 5.3% in FY23, with the group’s SA revenue growing by 22% due to improved letting conditions.
The group’s Australian business (GOZ) saw revenue increase by 16.2%, which was mainly due to the acquisition of GSO Dandenong.
The group added that its development and capital expenditure in South Africa grew to R1.9 billion
(FY22: R1.2 billion), with the largest projects being the development of two student accommodation properties, Peak Studios (R165.4 million) and Apex Studios (R164.7 million) and further development at Paarl Mall (R102.9 million).
It also said that it has commitments outstanding for several South African developments, which total R18 billion in FY23), with Bayside Mall in Cape Town being the most expensive at R352 million.
During the year, the group also sold 29 properties (FY22: 37) for R1.5 billion (FY22: R2.1 billion), which included the East Rand Value Mall in Boksburg for R206.3 million.
Moreover, despite the challenging economic conditions, total SA arrears for the year declined to R165.4 million (FY22: R195.3 million). Total net SA debt write-offs, recoveries and provisions also declined to R17.3 million (FY22: R24.4 million).
However, the group did state that vacancies in its South African retail portfolio have increased to 6.3% (FY22: 5.5%)
Group distributable income jumped by R56.0 million (1.1%) from R5,307 million to R5,363 million. Distributable income per share (DIPS) – the primary measure of profits in the real estate industry – also jumped 1.3% from 155.6cps to 157.6cps.
The dividend per share also jumped from 128.4 cps to 130.1 cps.
Below are some of the group’s key financials:
| Financials | FY22 | FY23 | % Change |
| Revenue | 13 048 m | 13 740 m | 5.0% |
| Basic Earnings Per Share | 233.04 cents | 69.24 cents | -70.3% |
| Basic Headline Earnings Per Share | 211.14 cents | 149.61 cents | -29.1% |
| Distributable income per share | 155.6 cents | 157.6 cents | 1.3% |
| Dividend | 128.4 cents | 130.1 cents | 1.3% |
Read: Another of South Africa’s biggest malls is up for sale
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