Growthpoint Properties

Overview

Growthpoint Properties Limited (Growthpoint) is the largest listed property investment holding company, on the Johannesburg Stock Exchange, (“JSE”). A member of the FTSE/JSE Top 40 Index, Growthpoint has a market capitalisation in excess of R21 billion and assets of approximately R33 billion including its investment in the Australian Stock Exchange listed Growthpoint Properties Australia (www.growthpoint.com.au). With increased market capitalisation and liquidity, Growthpoint was recently included in the MSCI Emerging Markets Stock Index, EPRA/NATREIT Index.

In South Africa Growthpoint has a diversified portfolio of 438 properties, valued at approximately R29 billion with retail properties comprising 35% of the value, office 43% and industrial 23%. The bulk of the gross lettable area is situated in Gauteng (62%), with the balance located in the Western Cape (19%), KwaZulu Natal (10%), Eastern Cape (4%) and other provinces throughout South Africa and Namibia (5%).

Through its 76% ownership of Growthpoint Properties Australia, Growthpoint owns a further 22 properties valued at approx. R4 billion in Australia. Growthpoint Properties Australia’s property portfolio is 100% industrial and geographically diversified with 49% of the portfolio by value in Victoria, 24% in Queensland, 14% in Western Australia, 11% in South Australia and 2% in New South Wales.

In a transaction that was the first of its kind in South Africa, in 2007 Growthpoint internalised its management creating the only “fully intergrated” internally managed property company in South Africa. Employing approx. 430 staff, Growthpoint performs all its property related functions (asset, property and facilities management) internally.

Mission statement
“To be the leading South African property company, consistently delivering superior value to all stakeholders, driven by our passion for property and commitment to our core values.”

Core values

Following the completion of an in-depth exercise to explore the culture and values of Growthpoint, with extensive input from staff, we developed a set of core values. The mission and core values define our conduct, approach and attitude - whether to business, employees or broader society.

The core values are as follows:

Our people are our most important asset
We achieve through extraordinary performance
We promise clients the highest level of service
We fulfil our commitments
We take ownership
We are ethical and fair
We show respect for all people
We encourage open and honest debate
We are socially responsible

Business philosophy

In striving to achieve our mission and core values, we seek, at all times, to:

- Generate consistent, reliable income and long-term capital appreciation by:

Maintaining an optimal balance of well-located, sectorally and geographically diversified portfolio of prime properties
Preserving and enhancing the value of properties owned through ongoing maintenance, upgrading and refurbishment
Maximising the letting of available space to financially sound tenants with long leases
Maintaining a limited development pipeline. In the current environment, new developments are required to be at least 75% pre-let

- Maintain a strong balance sheet through conservative gearing and credit metrics that are well within covenants
- Limit exposure to interest rate risk by fixing interest rates over periods matching lease expiries
- Seek out suitable acquisition opportunities both locally and internationally, that fit our business philosophy and strategy

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