JSE-listed Growthpoint Properties today announced a 14.9% increase in revenue to R2.86-billion, driven primarily by contractual rental escalations and an increase in revenue from its recent investment in Growthpoint Properties Australia (GOZ).

In addition, it posted a 7.2% growth in distributions to 72.7c per linked unit for the six months ended December 31, 2012 – above the original market guidance of 6.1%.

CEO Norbert Sasse attributed the performance to growing revenue from the group’s South African property assets, as well as favourable conditions, which boosted the distribution-enhancing performance of its investment in GOZ.

“The heightened distribution growth should continue, as we last week revised our expected growth in distributions to between 7% and 7.5% for the full year to June 30, 2013,” he said.

The group’s market capitalisation was R43.3-billion at December 2012, with its net asset value up 4% to R16 77c per linked unit, providing a total return to investors of 19.4%.

During the half-year, Growthpoint’s investment properties increased in value by R859.4-million to R55.7-billion, closing the period with total tangible assets of R57.4-billion.

Meanwhile, its ratio of property expenses to revenue improved from 21.9% to 21%, bolstered by cost and management controls from its directly owned South African portfolio in particular, which delivered a 0.4% improvement in its ratio of 23.9%.

The South African portfolio, which represented 64.3% of Growthpoint’s total asset value, was well diversified across office, retail and industrial properties and delivered a solid performance during the half year, with occupancy levels of 95.9% despite a tough economic context.

Arrears in the local portfolio at R48-million remained largely unchanged compared with the same time last year.

“This portfolio achieved like-for-like net income growth of 7.6%, which is robust in present economic conditions. Increased occupancies and normal rental escalations were supported by aggressive leasing, innovative tenant retention strategies and exacting cost controls,” Sasse noted.

The company’s loan-to-value ratio remained largely unchanged at 36.6%, while unsecured debt increased to 41.7% of total debt, owing primarily to a R500-million five-year corporate bond issue.

“We continue to enjoy good access to liquidity from both bond and bank markets,” he said, adding that the company would continue to grow a diversified portfolio of quality investment properties to deliver sustainable income distributions and capital appreciation.

Growthpoint’s portfolio included 390 directly owned properties in South Africa valued at R35.9-billion, a 50% interest in the Victoria & Alfred Waterfront, in Cape Town, with properties valued at R5.1-billion and a 65.3% interest in GOZ, which owned 43 properties across Australia valued at R14.8-billion.