Growthpoint is an international property company that provides space to thrive with innovative and sustainable property solutions.
Growthpoint is the largest South African primary JSE-listed REIT with a quality portfolio of 408 (FY21: 432) directly owned properties in South Africa (SA) valued at R68.8bn (FY21: R68.8bn). Growthpoint has a 55.9% (FY21: 62.2%) shareholding in Growthpoint Healthcare Property Holdings (RF) Limited (GHPH), which owns six hospitals (FY21: five) and one medical chambers (FY21: one) valued at R3.4bn (FY21: R2.8bn). In December 2021, Growthpoint acquired a 16.8% shareholding in the newly launched Growthpoint Student Accommodation Holdings (RF) Limited (GSAH). It diluted to 16.6% at FY22 due to new shares issued. GSAH owns seven student accommodation properties with 4 979 beds and two properties under construction valued at R2.2bn.
Growthpoint has a 62.2% (FY21: 62.2%) interest in ASX-listed Growthpoint Properties Australia Limited (GOZ), which owns 58 (FY21: 55) properties in Australia valued at R58.8bn (FY21: R49.5bn) and a 60.8% (FY21: 52.1%) interest in LSE and JSE-listed Capital & Regional Plc (C&R), which owns six (FY21: seven) needs-based community shopping centres in the United Kingdom valued at R8.5bn (FY21: R10.5bn).
GOZ owns a 15.0% (FY21: 15.0%) stake in ASX-listed Dexus Industria REIT (DXI), valued at R1.5bn (FY21: R1.1bn).
We have four (FY21: three) equity-accounted investments valued at R14.6bn (FY21: R15.0bn). Our 29.4% (FY21: 29.3%) stake in London Stock Exchange AIM-listed Globalworth Real Estate Investments Limited (GWI) valued at R8.8bn (FY21: R8.6bn) and 50.0% (FY21: 50.0%) stake of the V&A Waterfront (V&A) valued at R5.8bn (FY21: R6.3bn) are the largest of these investments.
Growthpoint has four (FY21: five) unlisted investments valued at R921.2m (FY21: R808.1m). The largest is a 16.3% (FY21: 16.1%) stake in Lango Real Estate Limited (Lango) valued at R858.2m (FY21: R758.2m).
We have a trading and development division which develops commercial property internally and for third parties and has five properties (FY21: six) valued at R453.2m (FY21: R548.0m).
GHPH, GSAH and Lango are part of Growthpoint Investment Partners, its alternative real estate co-investment business. Growthpoint Investment Partners has assets under management of R15.6bn (FY21: R11.7bn). Growthpoint reached its initial goal of R15.0bn a year ahead of time during HY22.
Growthpoint is included in the FTSE/JSE Top 40 Index (J200) with a market capitalisation of R42.4bn at 30 June 2022 (FY22) (FY21: R51.1bn). On average, 219.8m shares (FY21: 244.8m) with a value of R3.1bn (FY21: R3.2bn) were traded per month during the year. This makes Growthpoint a liquid and tradable way to own commercial property in SA. Growthpoint’s property portfolio comprises South African assets (inclusive of the V&A) (56.5%) and international (43.5%) assets. It is well diversified in the three major commercial property sectors: retail, office and industrial. Most of the portfolio is in economic nodes within major metropolitan areas.
For FY22, the SA REIT net asset value (SA REIT NAV) of the Group increased by 6.7% to 2 158 (FY21: 2 023) cents per share.
In line with Growthpoint’s vision “to be a leading international property company providing space to thrive”, the company’s strategy incorporates:
While our strategic pillars remain intact, our priority is still to maintain a strong balance sheet and liquidity position.
The Board is satisfied with the progress made in further bolstering the balance sheet in FY22 through various initiatives, including R2.1bn of asset sales in SA (FY21: R559.0m) and R935.0m (before income tax) (FY21: R1.0bn) cash retained as a result of the Company’s conservative dividend pay out ratio of 82.5% (FY21: 80.0%).
Group SA REIT FFO increased by R645m (13.9%) from R4 653m for FY21 to R5 298m for FY22. On a per share basis it increased 13.7% from 136.8c to 155.5c. Group distributable income increased by R255m (5.0%) from R5 052m to R5 307m. DIPS increased by 5.1% from 148.1c to 155.6c.
The summarised consolidated financial statements are prepared in accordance with International Financial Reporting Standards (IFRS), IAS 34 Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by Financial Reporting Standards Council and the requirements of the Companies Act of South Africa. The accounting policies applied in preparing these financial statements are in terms of IFRS and are consistent with those applied in the previous annual financial statements, except for the amendment to IFRS 3 Business Combinations – Definition of a Business which became effective for the first time for the financial year starting 1 July 2021.
The summarised consolidated financial statements are extracted from the audited information but are not themselves audited. The annual financial statements were audited by Ernst & Young Inc., who expressed an unmodified opinion thereon. The auditor’s report does not report on all the information contained in these summarised consolidated financial statements. Shareholders are therefore advised that, to obtain a full understanding of the nature of the auditor’s engagement, they should obtain a copy of the auditor’s report, together with the accompanying audited consolidated financial statements, both of which are available for inspection at the company’s registered office or on the company’s website.
The directors of Growthpoint Properties Limited take full responsibility for the preparation of this report and confirm that the selected financial information has been correctly extracted from the underlying consolidated financial statements.
Mr G Völkel (CA(SA)), Growthpoint’s Group Financial Director, was responsible for supervising the preparation of these summarised consolidated financial statements.
The investment in GOZ was accounted for in terms of IAS 21 The Effects of Changes in Foreign Exchange Rates. The statement of financial position includes 100% of the assets and liabilities of GOZ, converted at the closing exchange rate at FY22 of R11.24:AUD1 (FY21: R10.70:AUD1).
A deferred tax liability of R5.1bn (FY21: R4.2bn) is included in the statement of financial position. This relates to capital gains tax payable at a rate of 30% in Australia if Growthpoint were to sell its investment in GOZ.
The statement of profit or loss and other comprehensive income includes 100% of the revenue and expenses of GOZ, which were translated at an average exchange rate of R11.04:AUD1 for FY22 (FY21: R11.49:AUD1). The resulting foreign currency translation difference is recognised in other comprehensive income. A non-controlling interest was raised for the 37.8% (FY21: 37.8%) not owned by Growthpoint.
Included in the FY22 distributable income is a R1.1bn (AUD20.8c per share) distribution accrued from GOZ, compared to R987.0m (AUD20.0c per share) for FY21.
Included in normal tax in the statement of profit or loss and other comprehensive income is R113.9m (FY21: R110.3m) which relates to 9.9% (FY21: 10.2%) withholding tax paid on the distributions from GOZ.
The investment in C&R was accounted for in terms of IAS 21 The Effects of Changes in Foreign Exchange Rates. The statement of financial position includes 100% of the assets and liabilities of C&R, converted at the closing exchange rate at FY22 of R19.83:GBP1 (FY21: R19.75:GBP1).
The statement of profit or loss and other comprehensive income includes 100% of the revenue and expenses of C&R, which were translated at an average exchange rate of R20.24:GBP1 for FY22 (FY21: R20.71:GBP1). The resulting foreign currency translation difference is recognised in other comprehensive income. A non-controlling interest was raised for the 39.2% (FY21: 47.9%) not owned by Growthpoint. Included in the FY22 distributable income is a R49.8m (GBP2.5p per share) dividend declared by C&R, compared to Rnil declared for FY21.
C&R undertook a GBP30.0m equity raise during the year which was fully underwritten by Growthpoint. This transaction resulted in an additional investment by Growthpoint of R480.0m (GBP23.7m) and increased its shareholding from 52.1% to 60.8%.
C&R has been working closely with the lender for the Luton property to explore the disposal of most or all of the investment or asset. This process is ongoing and expected to reach a conclusion by the end of September 2022. As part of the agreement to run a consensual sale process, changes to the constitution of the Luton entities were made including the appointment of an independent director with specific rights regarding the sale process. These changes took effect in May 2022 and the effective loss of control that they triggered has resulted in the Group deconsolidating its interest in Luton from that date. This increased C&R’s net asset value by GBP6.8m being the net liabilities at the point of deconsolidation.
The investments in the V&A, GWI, Ferguson Place (RF) Limited and Lango Real Estate Management Limited were accounted for in terms of IFRS 11 Joint Arrangements and IAS 28 Investments in Associates. The equity-accounting method was used in terms of which the Group’s share of the profit or loss and other comprehensive income of these investments were accounted for. Included in the FY22 distributable income is R566.7m from the V&A (FY21: R364.9m) and R317.9m from GWI (FY21: R370.3m).
Revenue decreased by 0.6% for FY22 compared to FY21 as a result of property sales, partly offset by decreased vacancies and decreased rental discounts provided to tenants. SA revenue decreased by 0.4%, and GOZ revenue increased by 0.7% compared to FY21. C&R revenue decreased by 5.8% compared to FY21. The SA REIT cost-to-income ratio for the Group increased to 41.4% for FY22 from 38.8% for FY21. For SA the ratio increased to 44.5% from 41.8% for FY21 and GOZ increased to 25.0% from 23.5% for FY21. For C&R the ratio increased to 59.1% from 55.6% for FY21.
The revaluation of properties in SA, GOZ and C&R resulted in an overall increase of R2.0bn (1.5%) (FY21: decrease of R4.4bn or 3.3%) to R135.6bn (FY21: R128.2bn) for investment property (including investment properties classified as held for sale). The revaluation of properties resulted in a decrease in values in SA of R1.2bn (1.7%) (FY21: decrease of R5.4bn or 7.4%), an increase of R3.4bn (6.1%) (FY21: increase of R3.9bn or 8.7%) for GOZ and a decrease of R175.1m (2.0%) (FY21: decrease of R2.9bn or 21.7%) for C&R.
The SA valuations were negatively impacted by vacancies in the office sector, partly offset by decreased vacancies in the retail and industrial portfolios. Property assets held for trading and development are reflected at the lower of cost or net realisable value. For FY22, no impairment loss was recognised on property assets held for trading and development (FY21: R30.0m or 5.2%).
Interest-bearing borrowings and derivatives were fair valued using the SA or foreign-denominated swap curves at FY22, decreasing the overall liability by R4.2bn (FY21: decrease of R615.1m). These fair value adjustments and other non-distributable items, such as capital items, non-cash charges, deferred taxation and the net effect of the non-controlling interests’ portion of the non-distributable items were transferred to the non-distributable reserve.
Finance costs, including finance costs and income received on interest rate swaps, decreased by 4.1% to R3.2bn (FY21: R3.3bn). The interest cover ratio increased to 3.1 times for FY22 (FY21: 2.9 times). The weighted average interest rate for SA borrowings was 8.1% (FY21: 7.8%) (6.1% including foreign-denominated loans and cross-currency interest rate swaps (CCIRS) (FY21: 6.0%)). The weighted average debt maturity for SA borrowings decreased to 2.9 years (FY21: 3.1 years). Finance costs for GOZ decreased by 3.4% from R564.4m in FY21 to R546.0m in FY22 due to a lower weighted average cost of debt. Finance costs for C&R decreased by 10.5% from R352.5m in FY21 to R315.0m in FY22 due to the repayment and deconsolidation of loans.
Finance and other investment income increased to R167.0m (FY21: R138.5m). This is mainly due to an increase in dividends received on investments, offset by the decreased interest received from banks.
Through GSAH, Growthpoint acquired seven purpose-built student accommodation properties for R2.1bn in December 2021. It also acquired four telecommunications assets in SA for R5.2m (included in Industrial) during the year.
The development and capital expenditure for SA of R1.2bn (FY21: R1.0bn) was for various projects in the year, including the development at Samrand, Midrand and NTT Johannesburg 1 Data Centre which were the largest. Growthpoint has commitments outstanding for SA developments totalling R654.0m at FY22 (FY21: R310.8m) of which Apex Studios, Braamfontein, Johannesburg and Peak Studios, Observatory, Cape Town, two student accommodation developments, are the largest.
GOZ acquired three office properties for R3.0bn (AUD274.2m) during the year and incurred development and capital expenditure totalling R484.0m (AUD43.2m), its biggest projects being the refurbishment of 75 Dorcas Street, South Melbourne (VIC), for R234.4m (AUD21.0m) and 120-132 Atlantic Drive, Keysborough (VIC), for R37.6m (AUD3.4m). GOZ has commitments outstanding totalling R2.2bn (AUD195.8m) at FY22 (FY21: R1.0bn (AUD97.1m)).
These commitments relate to the acquisition of 165 – 169 Thomas Street, Dandenong, Victoria (VIC) for R1.7bn (AUD165.0m) (net sale price), net of a deposit paid of R185.5m (AUD16.5m), and tenant installation costs at 1 Charles Street, Parramatta (NSW) for R531.6m (AUD47.3m).
C&R incurred capital expenditure of R190.0m (GBP9.8m) in FY22 (FY21: R83.1m (GBP4.0m)) and has outstanding commitments of R236.8m (GBP12.0m) at FY22 (FY21: R53.5m (GBP2.7m)) relating to various capital projects at the retail centres.
Part of Growthpoint’s strategy is to build a co-investment, co-management business with diversified alternative real estate assets. To this end we have achieved our initial goal by establishing three separately identifiable investments with total assets under management of R15.6bn (FY21: R11.7bn).
| GLA | Vacancy rate | |||
| FY22 m2 |
FY21 m2 |
FY22 % |
FY21 % |
|
| Retail | 1 283 698 | 1 356 981 | 5.5 | 6.2 |
|---|---|---|---|---|
| Office | 1 672 345 | 1 708 285 | 20.7 | 19.9 |
| Industrial | 2 093 262 | 2 262 728 | 5.7 | 9.4 |
| Healthcare | 107 562 | 89 637 | 0.1 | – |
| Trading and development | 37 512 | 55 403 | – | – |
| SA total | 5 194 379 | 5 473 034 | 10.3 | 11.6 |
| V&A | 232 041 | 232 531 | 1.6 | 3.0 |
| GOZ | 1 061 454 | 1 033 028 | 1.6 | 2.3 |
| C&R | 239 690 | 350 980 | 7.4 | 18.2 |
| Total | 6 727 564 | 7 089 573 | 8.5 | 10.3 |
Adhering to the previously communicated limits, the value of projects pre-identified as opportunities for trading and development for third parties in SA will not exceed 3.0% of the value of the SA portfolio and assets developed for our own balance sheet will not exceed 5.0%. In the current environment, we have scaled back all non-essential capital and development spending and will only proceed with opportunities which are client-driven or substantially pre-let.
Growthpoint disposed of 37 properties in the year (FY21: eight) for R2.1bn (FY21: R559.0m), including 14th Avenue Hyper in Roodepoort for R320.0m and the Helderberg Centre in Somerset West, Cape Town, for R200.0m and two trading and development properties for R339.4m. GOZ did not dispose of any properties during the year. C&R disposed of an office building at Maidstone for R153.2m (GBP7.1m). At FY22, five SA properties (FY21: eight) valued at R72.5m (FY21: R181.2m) were held for sale. One C&R property (FY21: nil), the Mall in Blackburn valued at R793.0m (GBP40.0m) was held for sale at FY22. No Australian properties were classified as held for sale.
Total SA arrears at FY22 were R195.3m (FY21: R308.2m) with a loss allowance of R114.1m (FY21: R174.5m). Total net SA bad debt write-offs, recoveries and provisions were R24.4m (FY21: R29.9m).
Total GOZ arrears at FY22 were R17.5m (FY21: R5.7m) with a loss allowance of R2.6m (FY21: R1.1m). Total C&R arrears at FY22 were R196.8m (FY21: R471.9m) with a loss allowance of R81.8m (FY21: R164.0m).
Vacancies decreased in the SA retail and industrial sectors but increased in the office sector. Vacancies at the V&A, GOZ and C&R also decreased. Tenant retention remains a priority and we are addressing it through various initiatives including UNdeposit, SmartMove, SmartStay, SmartFlex, SmartRefer, #Bringusaname and Growthpoint’s resource-efficient, sustainable Thrive portfolio.
The SA REIT loan-to-value ratio for the Group (SA REIT LTV) was 37.9% for FY22 (FY21: 40.0%). The South African SA REIT LTV decreased to 32.0% (FY21: 35.1%), the GOZ SA REIT LTV increased to 30.6% (FY21: 27.6%) and the C&R SA REIT LTV decreased to 45.3% (FY21: 65.5%).
Growthpoint has consistently applied its policy for measuring the fair value of interest-bearing borrowings and derivatives. The Group has unsecured interest-bearing borrowings of R21.4bn at FY22 (FY21: R21.6bn). All other interest-bearing borrowings across the Group are secured. Growthpoint has unused committed bank facilities of R10.3bn (FY21: R6.5bn) in SA and separately R79.0m (GBP4.0m) (FY21: nil) in C&R and R4.0bn (AUD353.5m) (FY21: R4.1bn or AUD387.5m) in GOZ.
Growthpoint also has cash of R1.5bn (FY21: R709.8m) in SA, R553.1m (AUD49.2m) (FY21: R358.1m or AUD33.5m) in GOZ and R791.0m (GBP39.9m) (FY21: R1.6bn or GBP78.7m) in C&R at FY22. The bank facilities and cash balances assure Growthpoint’s ability to meet its short-term commitments.
Melt Hamman was appointed as an Independent Non-executive Director on 14 September 2021. Melt is Chairman of the Audit Committee and serves as a member of the Property and Investment Committee.
Eileen Wilton was appointed as an Independent Non-executive Director on 9 February 2022. Eileen is Chairman of the HR and Remuneration Committee and serves as a member of the Risk Management Committee.
Clifford Raphiri was appointed as an Independent Non-executive Director on 1 March 2022 and serves as a member of the Audit and the Social, Ethics and Transformation Committees.
Andile Sangqu was appointed as the Lead Independent Director on 1 July 2022.
Francois Marais and John Hayward retired at the AGM on 16 November 2021. Rhidwaan Gasant assumed the Chairmanship of the Board on the retirement of Francois Marais.
Francois Marais was the previous Chairman of the Board and served as Director of Growthpoint for 18 years. Francois has been instrumental in the rapid growth of Growthpoint since joining the Board.
John Hayward served on various committees over the past 20 years. His knowledge, insight and measured approach to matters were much appreciated during his tenure.
We thank Francois and John for their leadership and dedicated service to Growthpoint.
The directors have assessed the Group’s ability to continue as a going concern. At FY22, the Group had a substantial positive net asset value and a robust liquidity position with access to R10.3bn (FY21: R6.5bn) in SA and separately R4.0bn (AUD353.5m) (FY21: R4.1bn or AUD387.5m) in GOZ and R79.0m (GBP4.0m) (FY21: nil) in C&R of committed undrawn credit facilities. The following uncertainties were considered as part of the going-concern assessment:
Access to liquidity
Stressed market conditions may impact debt funders’ risk appetite and limit access to liquidity. The company continuously reviews its funding and maturity profile and monitors the debt capital markets to ensure that it is well positioned for any refinancing opportunities, including the USD-denominated Eurobond maturing in May 2023.
Breach of covenants
The current Group SA REIT LTV of 37.9% (FY21: 40.0%) is well below the maximum loan-to-value covenants the Group is exposed to, of 55.0%. Loan-to-value and interest cover ratio covenants may come under pressure due to decreasing property valuations and rental income because of the expected economic downturn related to the increase in interest rates and inflation.
Maturity of USD-denominated Eurobond
The USD425.0m Eurobond and USD425.0/EUR326.0m cross-currency interest rate swaps linked to the bond are maturing in May 2023. In preparation for the maturity, the Group has secured EUR200.0m in standby facilities and EUR60.0m revolving credit facility should the Group decide not to refinance the bond before the maturity date. These standby and revolving credit facilities are included in the total facilities available as disclosed.
Conclusion
After due consideration, the directors have concluded that the Group has adequate resources and debt facilities to continue operating for the foreseeable future and that it is appropriate to adopt the going-concern basis in preparing the financial statements.
Declaration of dividend after reporting period
In line with IAS10 Events after the Reporting Period, the declaration of the dividend occurred after the end of the reporting period, resulting in a non-adjusting event that is not recognised in the financial statements.
C&R
New facilities
On 7 July 2022, C&R drew down a new GBP4.0m facility with BC Invest, a subsidiary of the C&R’s strategic residential partner, Far East Consortium. The new debt provided for an initial period of three years at a rate of SONIA+5.95%. It is secured on the Marlowes Centre on a non-recourse basis.
Disposals
On 11 July 2022, C&R completed the GBP21.7m sale of land to Long Harbour for residential development at its 17&Central community shopping centre in Walthamstow.
In May 2022, C&R exchanged contracts for the sale of The Mall, Blackburn to the retail arm of the Adhan Group of Companies for GBP40.0m, representing a premium to the December 2021 valuation of GBP38.2m. The sale was completed on 9 August 2022 delivering net cash proceeds of GBP39.0m.
GOZ
Acquisitions
On 27 July 2022, the acquisition of 165 – 169 Thomas Street, Dandenong, Victoria (VIC) was settled for AUD165.0m (net sale price excluding acquisition costs).
Acquisition of funds management business
On 3 August 2022, GOZ entered into a share sale agreement to acquire 100% of the shares in Fortius Funds Management (Pty) Limited. Under the terms of the agreement, Fortius shareholders will be entitled to receive from GOZ an initial purchase price of AUD45.0m (with a net asset adjustment) upon completion plus up to an additional AUD10.0m component based on agreed milestones being met over the period to June 2024. Completion is anticipated to take place in the first quarter of FY23, subject to conditions precedent being satisfied. The remaining disclosures required under accounting standards concerning this business combination will be included in the interim financial report for the period ending 31 December 2022.
While we expect FY23 to be another challenging year, we have a resilient business with the great strengths of skilled people, diversification and astute financial management that benefits from a track record of delivering value to our stakeholders through the cycle. This gives us cause for optimism about our prospects.
Our performance in South Africa in FY23 will be linked to the country’s economic health. Our business approach will reflect our priorities of protecting balance sheet strength and furthering our ESG targets. We shall continue to optimise our South African portfolio, specifically focusing on capital rotation, tenant retention, strategic repositioning, green building, solar energy and cost management.
The SA retail sector is largely back to pre-Covid levels, and although consumers remain under financial pressure, we anticipate modest growth from it. The industrial sector, which has enjoyed the most balanced supply and demand dynamics, is expected to perform well and continues to outperform other sectors. The office sector remains oversupplied, but until the South African economy enters a growth phase, conditions will remain challenging for businesses and consequently the office sector. In-force and renewal escalations are under pressure in all sectors.
The V&A rebounded strongly with the recovery in tourism, and we anticipate continued improvement from this investment.
The growth of assets under the capital light funds management strategy will continue to receive our attention locally and internationally. In South Africa and continental Africa, this focus will be executed by Growthpoint Investment Partners, which has good growth potential.
International expansion continues to be a strategic priority with a focus on portfolio optimisation in the short term.
GOZ has been relatively unaffected by the pandemic and has a robust balance sheet and liquidity position and strong tenancies. It is a strong performer and has continued to invest further in high-quality assets and a funds management platform, Fortius Fund Management. While there may be negative impacts from the prevailing global challenges, given the guidance from GOZ for a decrease in FFO for FY23, this will be cushioned to some extent by our foreign income hedging strategies.
C&R has recapitalised, refocused and restructured. After declaring no dividend for 18 months, C&R reinstated the payment of a modest dividend and we expect to see an improved contribution next year.
Having utilised most of the cash on the balance sheet to repay its bond, GWI has reduced the negative cash drag on its income statement.
We are committed to retaining our REIT status and intend to continue to pay dividends twice a year, of at least 75% of distributable income.
Our diversified portfolio, strong balance sheet and stable hard currency dividend income streams position us defensively for FY23. However, given the high level of uncertainty in the local and global macro-economic environment, coupled with rising interest rates and inflation, we expect muted DIPS growth for FY23.
Notice is hereby given of the declaration of the final dividend number 73 of 66.9 cents per share for the period ended 30 June 2022.
Shareholders are advised that the dividend meets the requirements of a “qualifying distribution” for the purposes of section 25BB of the Income Tax Act, No 58 of 1962 (Income Tax Act). The dividends on the shares will be taxable dividends for South African tax purposes in terms of section 25BB of the Income Tax Act.
Tax implications for South African resident shareholders
Dividends received by or accrued to South African tax residents must be included in the gross income of such shareholders and will not be exempt from income tax in terms of the exclusion to the general dividend exemption contained in section 10(1)(k)(i)(aa) of the Income Tax Act because they are dividends distributed by a REIT. These dividends are, however, exempt from dividend withholding tax (dividend tax) in the hands of South African resident shareholders provided that the South African resident shareholders have provided to the Central Securities Depository Participant (CSDP) or broker, as the case may be, in respect of uncertificated shares, or the company, in respect of certificated shares, a DTD(EX) (dividend tax: declaration and undertaking to be made by the beneficial owner of a share) form to prove their status as South African residents. If resident shareholders have not submitted the above mentioned documentation to confirm their status as South African residents, they are advised to contact their CSDP or broker, as the case may be, to arrange for the documents to be submitted before the dividend payment.
Tax implications for non-resident shareholders
Dividends received by non-resident shareholders from a REIT will not be taxable as income and instead will be treated as ordinary dividends which are exempt from income tax in terms of the general dividend exemption section 10(1)(k) of the Income Tax Act. Any dividend received by a non-resident from a REIT is subject to dividend tax at 20%, unless the rate is reduced in terms of any applicable agreement for the avoidance of double taxation (DTA) between SA and the country of residence of the non-resident shareholder. Assuming dividend tax will be withheld at a rate of 20%, the net amount due to non-resident shareholders is 53.52c per share. A reduced dividend withholding tax rate in terms of the applicable DTA may only be relied on if the non-resident shareholder has provided the following forms to their CSDP or broker, as the case may be, in respect of uncertificated shares, or the company, in respect of certificated shares:
| 2022 | |
| Last day to trade (LDT) cum dividend | Tuesday, 25 October |
|---|---|
| Shares to trade ex dividend | Wednesday, 26 October |
| Record date | Friday, 28 October |
| Payment date | Monday, 31 October |
Notes:
1. Shares may not be dematerialised or rematerialised between the commencement of trade on Wednesday, 26 October 2022 and the close of trade on Friday, 28 October 2022, both days inclusive.
2. The above dates and times are subject to change. Any changes will be released on SENS.
By order of the Board
Growthpoint Properties Limited
13 September 2022
Directors
R Gasant (Chairman), FM Berkeley, NO Chauke* (Human Resource Director), EK de Klerk* (Chief Executive Officer South Africa), M Hamman, KP Lebina, SP Mngconkola, NBP Nkabinde, CD Raphiri, AH Sangqu (Lead Independent Director), LN Sasse* (Group Chief Executive Officer), JA van Wyk#, G Völkel* (Group Financial Director), EA Wilton
*Executive #British
Growthpoint Properties Limited
(Incorporated in the Republic of South Africa)
(Registration number 1987/004988/06)
A Real Estate Investment Trust, listed on the JSE
Share code: GRT ISIN: ZAE000179420
Registered office
The Place, 1 Sandton Drive
Sandown, Sandton, 2196
PO Box 78949, Sandton, 2146
Company Secretary
WJH de Koker
Transfer Secretary
JSE Investor Services (Pty) Limited
13th Floor, 19 Ameshoff Street
Braamfontein, Johannesburg, 2000
PO Box 4844, Braamfontein, 2000
Sponsor
Investec Bank Limited
(Registration number 1969/004763/06)
100 Grayston Drive, Sandown
Sandton, 2196
PO Box 785700, Sandown, Sandton, 2146