SA Property Group Enjoys High Full Year Payouts

August 27 - Another sign that the South African property market is improving:

The country's largest listed property group, Growthpoint has announced that its full year payout to investors would be 5.8%.

The group also said that it expected next years payouts to be even better.

Growthpoint is owned by several investors, including the pension fund Public Investment Corporation, which owns 27.5%, Old Mutual Group and Stanlib which own 5.7% each.

Payouts to shareholders from rental income grew to 121.1c per linked unit.

A linked unit consists of a share and a loan which earns interest on rental income.

Growthpoint has assets worth a staggering R35 billion, and also owns Growthpoint Properties Australia.

The Australian unit also increased payouts by around 1.4c per linked unit.

"Growthpoint's positive performance is significant given the effects of the global financial crisis and recent recession in South Africa," said the CEO of Growthpoint Properties Ltd, Norbert Sasse. "We are confident that we have come through the worst. Already an improvement in overall position is evident."

"Indications are that the economy is experiencing a moderate recovery," he said. "Should this be maintained and interest rates remain at current levels, it is expected that Growthpoint's distributions for the coming year will grow at a higher rate than that 5.8% of 2010."

8/27/2010 12:42:09 PM