Growthpoint Properties, which has a portfolio worth around R179 billion and a JSE market capitalization of just over R41 billion, said V&A Waterfront was an outstanding performer for the group in the six months to the end of December 2023.
Public Investment Corporation, a real estate investment trust (REIT) that owns Cape Town's trophy properties 50-50, said V&A Waterfront's strong performance was driven by “the positive impact of increased tourism through distributable income. ” he pointed out. An increase of 13.7% to R380.7 million was increased from precinct assets.
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This double-digit growth is in stark contrast to Growthpoint's overall interim financial performance, with the group announcing on Wednesday that both its distributable earnings per share (Dips) and dividends per share (DPS) for the same period reported a decrease of 8.6%.
The company announced an interim dividend of 58.8 cents per share (cps) and reported a decline of 71.2 cps (HY23: 77.9 cps).
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South Africa's largest private commercial landlord said it expected full-year (FY24) dips to fall by 10% to 12%.
“High interest rates continue to have a negative impact on the group’s distributable profits, with total cost of funds increasing by 16.9% to R127 million.” [HY23: R1 819 million]”, Growthpoint highlighted in its Sens earnings release.
There have been several reports from both the private sector and provincial authorities in the Western Cape regarding Cape Town's tourism boom during the holiday season, indicating a strong recovery in the aftermath of the COVID-19 lockdown.
Growthpoint is planning a further multi-billion rand expansion of the V&A Waterfront, but details are still being worked out for a multi-year development.
Listen/Read: Cape Town's V&A Waterfront plans 'crown jewel' development for post-COVID-19 future
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Listen to Suren Naidoo speak with SA REIT Association Chairman and Growthpoint SA CEO Estienne de Klerk on The Property Pod (or read the transcript):
You can also listen to this podcast on iono.fm here.