Growthpoint warns of fall in distribution per share

Growthpoint Properties' headquarters in Sandton.
Growthpoint Properties' headquarters in Sandton.

South Africa's largest property group, Growthpoint, has warned of at least a double-digit fall in distributable earnings per share (DPS) due to tenant relief and the effects of Covid-19.

DPS for the year to end-June is expected to fall at least 15%, and the group is also reconsidering its policy of paying out 100% of distributable earnings.

The board will deliberate on this and advise the market of its decision in September, the statement read.

The group said in June footfall in its shopping mall was improving in the wake of easing lockdown restrictions in South Africa, but that some tenants remained under pressure.

Western Cape shopping centres, which are in established urban areas, were also feeling the strain, Growthpoint said at the time.

The group's share price has fallen by about 36% so far in 2020, roughly in line with the JSE property index.

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