Growthpoint going ahead with dividend payment


Growthpoint going ahead with dividend payment


Published Date: 2020-03-27 | Source: Stephen Gunnion | Author: Stephen Gunnion

Growthpoint going ahead with dividend payment

The real estate investment trust says given the current uncertainty it has withdrawn its full-year guidance.

Growthpoint Properties says the quality of its property and investment portfolios, coupled with its diversity across sectors and different geographies, a strong balance sheet and healthy cash flows should help it weather current global uncertainty brought on by Covid-19. However, the real estate investment trust says it's not currently possible to quantify the impact the pandemic will have on its operations.

Apart from its local property portfolio, Growthpoint has big investments in Growthpoint Properties Australia, Globalworth Real Estate Investments and UK shopping centre owner Capital & Regional, all of which are separately listed companies.

At home, it said its industrial portfolio had a diverse tenant base and many would be unable to operate during the 21-day lockdown, which started today. However, tenants in the logistics business and those classified as critical services would be less affected.

Out of necessity, many tenants in its office portfolios had moved to a work-from-home environment to adhere to the social distancing directive and lockdown provisions.

The group said its retail portfolio faced the most uncertainty, with only grocery, pharmacy and other tenants falling within the government's definition of critical services staying open. It said it would focus on ways to support restaurants, personal care retailers, independents and line shops which would be impacted the most.

Growthpoint said it would benefit from its strong balance sheet over the next few months and would go ahead with the payment of its interim dividend of 106c per share on 6 April. However, given the current uncertainty, it has withdrawn its full-year dividend guidance. It previously indicated that growth in its full-year payout would be nominal at best.

Its shares rose 2.9% to R12.65 yesterday.


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