Growthpoint Properties Limited
Approved as a REIT by the JSE
(Incorporated in the Republic of South Africa)
Registration number 1987/004988/06
ISIN: ZAE000179420
JSE Share code: GRT
("Growthpoint” or "the Company")

GROUP CONDENSED UNAUDITED INTERIM RESULTS AND CASH DIVIDEND DECLARATION FOR
THE PERIOD ENDED 31 DECEMBER 2022

Operational review and results:

The group condensed unaudited interim results for the period ended 31 December 2022, as
compared to period ended 31 December 2021, ("comparative period"), are set out below:

   •   We remain focused on liquidity and balance sheet strength to enable us to pursue our
       strategic initiatives:
           o R756.3m of investment property sales in South Africa (SA) compared to R1.0bn
               in the comparative period and a total of R10.5bn of investment property sold
               since 30 June 2017,
           o R500.0m sale of convertible loan in Growthpoint Healthcare Property Holdings
               (RF) Limited (GHPH),
           o R465.9m (before income tax) cash retained, as a result of the company’s
               conservative dividend pay-out ratio of 82.5% compared to R524.6m (80.0%) in
               the comparative period,
           o R10.3bn unutilised committed facilities for SA compared to R10.3bn at 30 June
               2022,
           o R1.6bn cash on the SA balance sheet compared to R1.5bn at 30 June 2022,
           o Group LTV based on the SA REIT LTV definition increased to 38.8% compared to
               37.9% at 30 June 2022.
   •   Dividend per share increased by 4.6% to 64.3 cents compared to 61.5 cents for the
       comparative period;
   •   The V&A Waterfront (V&A) delivered a stellar performance with 23.0% growth in net
       property income compared to the comparative period as the V&A fully rebounded from
       the effects of the pandemic;
   •   Hard currency dividend income grew by 10.1% to R763.0m compared to R693.0m for
       the comparative period. Our offshore investments contributed 31.0% to EBIT and
       comprise 43.7% of group property assets.
           o Growthpoint Properties Australia Limited (GOZ) delivered strong net property
               income growth of 19.0% compared to the comparative period. It has a defensive
               and well positioned office and industrial portfolio, with 95.0% of the tenant
               base weighted to large corporates and the government. It has a strong capital
               position with conservative gearing and significant liquidity. GOZ declared a
               dividend of AUD10.7 cents per share compared to AUD10.4 cents per share for
               the comparative period translating into a dividend for Growthpoint of R533.6m
               compared to R527.0m in the comparative period.
           o Capital & Regional Plc (C&R) remains focussed on needs-based retail shopping
               centres. Gearing has improved to healthy 36.3% compared to 45.3% at 30 June
               2022. C&R declared a dividend of GBP2.75 pence per share translating into a
               dividend of R50.4m for Growthpoint with no dividend declared for the
               comparative period.
           o Globalworth Real Estate Investments Limited (GWI) has a diversified office and
               industrial portfolio with multinational tenants. It has a prudent capital position
               with significant liquidity. GWI declared a dividend of EUR15.0 cents per share
                   compared to EUR13.0 cents per share for the comparative period translating
                   into a dividend for Growthpoint of R166.6m compared to R149.8m in the
                   comparative period.
               o Growthpoint has undertaken to elect the scrip dividend alternative for both
                   C&R and GWI.
      •    Growthpoint Investment Partners (GIP) grew assets under management by 7.1% to
           R16.7bn from R15.6bn at 30 June 2022 and more than doubled management fees
           received to R48.1m compared to R21.5m for the comparative period. R750.0m was
           raised from new investors supporting both GHPH and Growthpoint Student
           Accommodation Holdings (RF) Limited (GSAH), demonstrating appetite for these niche
           asset classes;
      •    Over 700,000m² of space was let in SA during the period. Vacancies reduced to 9.9%
           from 10.3% at 30 June 2022. Some fundamentals have started to improve for the
           industrial and retail sectors whilst the office sector appears to have stabilised. Until
           the SA economy enters a growth phase, conditions will remain challenging. As such
           renewal success declined to 61.2% for the period from 75.1% for 30 June 2022 and
           renewal growth remains under pressure at negative 16.0% for the period compared to
           negative 12.8% for 30 June 2022;
      •    Total revenue increased by 7.4% to R6.85bn compared to R6.38bn for the comparative
           period;
      •    FFO per share based on the SA REIT FFO definition increased by 2.1% to 79.0 cents
           compared to 77.4 cents for the comparative period;
      •    Operating profit increased by 4.8% to R4.45bn compared to R4.24bn for the
           comparative period;
      •    Net asset value per share based on the SA REIT net asset value definition decreased by
           2.2% to 2 110 cents compared to 2 158 cents at 30 June 2022;
      •    Interest cover ratio remained strong at 2.9 times compared to 3.0 times for the
           comparative period;
      •    Group vacancies increased to 9.6% compared to 9.3%1 at 30 June 2022;
      •    Basic earnings per share decreased by 49.0% to 54.73 cents compared to 107.23 cents
           for the comparative period;
      •    Basic headline earnings per share increased by 52.0% to 85.99 cents compared to 56.57
           cents for the comparative period.

Growthpoint’s diversified portfolio, strong balance sheet and stable hard currency dividend
income streams position the company 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, DIPS growth for FY23 is expected to be muted.

The condensed results for the period ended 31 December 2022 are unaudited.

This short form announcement is the responsibility of the Board of Directors and does not
contain full or complete details. Any investment decisions by investors and/or shareholders
should be based as a whole on consideration of the group consolidated interim financial
statements which may be downloaded from the Company’s website.
https://growthpoint.co.za/investor-relations/financial-reports/ and
https://senspdf.jse.co.za/documents/2023/jse/isse/GRTE/Interim23.pdf

It may also be viewed, at no cost, at the registered office of the Company and the
Johannesburg office of its Sponsor, during ordinary business hours, for a period of 30 calendar
days following the date of this announcement. Copies of the full announcement may also be


1
    The vacancies for Lango and GWI were not previously included.
requested from the Company on request, by contacting the Head of Investor Relations, Lauren
Turner on 011 944 6346.

INTERIM DIVIDEND

Notice is hereby given of the declaration of the interim dividend number 74 of 64.30 cents per
share for the period ended 31 December 2022. The dividend has been declared from income
reserves.

Other information:
   • Issued shares as at declaration date: 3 430 787 066 ordinary shares of no par value.
   • Income Tax Reference Number of Growthpoint: 9375/077/71/7.

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) form (dividend tax:
declaration and undertaking to be made by the beneficial owner of a share) 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 RSA
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 51.44000 cents
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:
    • A declaration that the dividend is subject to a reduced rate as a result of the
        application of the DTA; and
    • A written undertaking to inform the CSDP, broker or the company, as the case may be,
        should the circumstances affecting the reduced rate change or the beneficial owner
        cease to be the beneficial owner, both in the form prescribed by the Commissioner of
        the South African Revenue Service. If applicable, non-resident shareholders are advised
        to contact the CSDP, broker or the company to arrange for the above mentioned
        documents to be submitted before dividend payment, if such documents have not
        already been submitted.
Salient dates and times
                                                                                                   2023
 Last day to trade (LDT) cum dividend                                               Tuesday, 11 April
 Shares to trade ex dividend                                                     Wednesday, 12 April
 Record date                                                                          Friday, 14 April
 Payment date                                                                       Monday, 17 April
Notes:
   1. Shares may not be dematerialised or rematerialised between the commencement of trade on
       Wednesday, 12 April 2023 and the close of trade on Friday, 14 April 2023, both days inclusive.


Sandton
15 March 2023
Sponsor: Investec Bank Limited