Growthpoint share price drifts lower after relatively flat FY23 results
Growthpoint Properties demonstrated a steady performance in challenging economic conditions, with a 5.3% increase in total revenue and a 2.1% increase in operating profit
Key Takeaways:
- Growthpoint Properties demonstrated a steady performance in challenging economic conditions, with a 5.3% increase in total revenue and a 2.1% increase in operating profit.
- The company's dividend per share and distributable income per share both saw a marginal increase of 1.3%, indicating stability and consistency in shareholder returns.
- Growthpoint successfully optimized its South African portfolio, disposing of properties worth R1.5bn, while still retaining a property valued at R18.0m for sale.
- Growthpoint Investment Partners experienced significant growth in assets under management, with a 14.7% increase, and raised R750.0m from new investors
- Internationally, Growthpoint's offshore dividend income increased by 7.6
FY23 results
Growthpoint Properties’ (GRT) audited annual results for the fiscal year ending 30 June 2023, showed a steady performance within challenging economic conditions.
In terms of performance, Growthpoint saw a 5.3% increase in total revenue to R13.7bn and an operating profit increase of 2.1% to R8.9bn.
The company's dividend per share sees a marginal increase of 1.3%, rising to 130.1 cents per share (cps) from 128.4 cps in the previous year. The distributable income per share also sees a 1.3% increase, reaching 157.6 cps compared to 155.6 cps in the corresponding period.
Growthpoint has strategically optimized its South African portfolio, leading to the disposal of 29 properties for R1.5bn, compared to R2.1bn in the previous year. However, the company still retains a property valued at R18.0m for sale as of FY23.
Growthpoint Investment Partners (GIP), the company's investment arm, witnessed a 14.7% growth in assets under management, reaching R17.9bn from R15.6bn. This growth was accompanied by an increase in management fees received, which rose to R98.0m from R67.2m. Additionally, GIP raised R750.0m from new investors, indicating a strong market appetite for the company's niche asset classes.
Internationally, Growthpoint's offshore dividend income increased by 7.6% in Rand terms to R1.6bn, up from R1.5bn in the previous year, illustrating the company's successful global market expansion. Growthpoint Properties Australia Limited (GOZ) reported a robust net property income growth of 19.5%, with a distribution of AUD21.4 cps. Capital & Regional Plc (C&R) and Globalworth Real Estate Investments Limited (GWI) also declared higher dividends compared to the previous year.
Growthpoint continues to prioritize liquidity and capital management, with R1.7bn cash on the SA balance sheet, an increase from R1.5bn in the corresponding period. The company also has R6.6bn in unutilized committed facilities for SA, up from R10.3bn in the corresponding period.
Broker ratings
A Refinitiv poll of analyst and broker ratings as of the 13th of September 2023 has an average rating of ‘hold’ for Growthpoint Properties.
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