Growthpoint interim dividend/share 0.662 rand

Growthpoint Properties Limited declared an interim dividend of 58.8 cents per share for the six months ended 31 December 2023, representing a 8.6% decrease compared to the prior year’s 64.3 cps. The dividend, paid from income reserves, aligns with the company’s 82.5% payout ratio, consistent with its stated strategy to balance shareholder returns with liquidity preservation.

The reduction reflects broader financial challenges, including elevated interest rates, which increased the Group’s total cost of funding by 16.9% to R2.1bn during the period. Despite improved performance in key sectors—such as a 13.7% rise in distributable income at the V&A Waterfront—the Group’s distributable income per share fell to 71.2 cps, down 8.6% year-on-year.

Internationally, offshore investments contributed 32.5% of distributable income, with Growthpoint Properties Australia (GOZ) and Capital & Regional plc (C&R) delivering mixed results. GOZ’s distribution declined to A$9.65 cps (R551.2m for Growthpoint), while C&R’s dividend rose to £2.95 pence per share (R88.5m for Growthpoint).

The dividend will be paid on 15 April 2024, with a record date of 12 April. Tax implications vary for shareholders: South African residents must submit documentation to avoid dividend withholding tax, while non-residents face a 20% withholding rate unless a double taxation agreement applies.

This interim payout follows a strategic focus on portfolio optimization, including property disposals and capital expenditures, to strengthen long-term liquidity amid a high-interest-rate environment.

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