1. How would you sum up Growthpoint?
Growthpoint is an ASX-listed, long-term landlord of quality Australian commercial real estate that seeks to provide its investors with both a growing distribution stream derived primarily from rent and a tradeable security.
2. What is Growthpoint’s long term strategy?
Growthpoint seeks to be a large, liquid ASX-listed property group with assets diversified across Australia in the office, industrial and retail sectors providing a continually growing distribution for investors.
3. What does Growthpoint invest in?
Growthpoint buys well-leased, well-located commercial real estate principally in established areas and in close proximity to CBDs, major transport linkages and significant infrastructure. Currently, Growthpoint only invests in industrial and office properties, however, its mandate includes retail property. Properties are located in every State in Australia as well as the Australian Capital Territory although Growthpoint is focussed on acquiring properties along the Australian Eastern Seaboard.
4. Would Growthpoint consider other types of investment such as pubs or residential?
Not deliberately. Growthpoint’s mandate is to invest in Australian office, industrial and retail property. Any investment outside of these sectors or outside of Australia would likely only be ancillary to a larger acquisition and is unlikely to be held for the medium-long term (e.g. Growthpoint might acquire a portfolio that includes residential land or buildings in which case Growthpoint would likely seek to sell the residential component when a suitable opportunity arose).
5. Why should I invest in Growthpoint?
Investors looking for distributions which are often more stable than other ASX-listed investment options are often attracted to A-REITs. Growthpoint has provided a higher yield over the last five years (partly due to higher yielding properties and partly due to lower costs) and has a longer WALE compared to many other A-REITs. Please note that this is not financial product advice and none of Growthpoint’s directors or employees can recommend that you invest in Growthpoint. Before making an investment decision, investors should consider the appropriateness of the information on this website and other documents released by the Group (available at asx.com.au) and have regard to their own objectives, financial situation and needs (based on third party advice as required).
6. Will Growthpoint be raising more capital in the future?
Since its inception in August 2009, Growthpoint has raised capital approximately every six months (in addition to the DRP) to fund acquisitions. Growthpoint continues to look for acquisition opportunities to grow and better its property portfolio for a given cost of capital and investment risk/return. Equity and debt will fund this future growth.
7. How does Growthpoint expect to increase distributions?
Growthpoint is positioned to increase distributions to Securityholders over time particularly due to:
- Fixed rental growth under leases averages 3.0% per annum, so rents for existing leases will provide growth in rental income.
- Growthpoint’s focus on maintaining high portfolio occupancy and its track record of leasing success prior to lease expiry
- Maintenance of operating cost control.
- Growthpoint’s ability to continue to lower its cost of debt (at least in the short to medium term).
- Opportunities for further accretive property acquisitions
8. Does Growthpoint expect its NTA per stapled security to increase?
NTA per stapled security can continue to increase for two reasons: (1) if Growthpoint continues to raise capital at prices above its NTA per security, this will raise the NTA and (2) if property valuations continue to increase due to (a) higher comparative property prices and (b) increased rents under leases (due to WARR), this will increase NTA. However, there are no guarantees that this will occur. There are a number of factors which could reduce NTA including negative interest rate swap revaluations, future retained losses, negative property valuations and raising capital below NTA.
9. What are Growthpoint’s expectation for valuation growth?
There is currently significant demand for quality Australian commercial real estate which is causing prices to rise, particularly for prime CBD office buildings and larger industrial properties with long leases. Growthpoint has seen this flow into a valuation increase for its properties over the year and expects this to continue at least for the short term.
10. Does Growthpoint sell assets?
Growthpoint sold over $120 million of property in eight transactions over the last 6 years. Growthpoint may consider further asset sales where the assets no longer meet Growthpoint’s investment criteria or where an offer is received that Growthpoint sees greater benefit in accepting than rejecting. Overall, Growthpoint expects to be a net acquirer of assets in the medium term.
11. What are Growthpoint’s key risks and uncertainties?
Refer to pages 22-29 of Growthpoint's 2016 Sustainability Report for details on key risks and uncertainties.
1. What type of assets does Growthpoint own or seek to own?
Growthpoint seeks to acquire modern, well-leased and well-located commercial properties in Australia that it can hold for long term rental return and capital appreciation.
2. How do I enquire about leasing from Growthpoint?
3. How do I enquire about purchasing property from Growthpoint?
Enquiries can be made via the Head of Property at email@example.com or by calling +61 3 8681 2900. Specific details about properties for sale are also periodically posted on this website, see properties for sale.
4. Where do I find details about the assets Growthpoint owns?
Refer to the property portfolio overview on this website for more details on the assets Growthpoint owns.
5. Does Growthpoint co-own assets?
Not currently. All of the Growthpoint’s assets are 100% owned by Growthpoint and therefore, Growthpoint’s Securityholders.
6. How many funds does Growthpoint operate?
Only one: Growthpoint Properties Australia Trust which owns (directly and via sub-subtrusts) all of Growthpoint’s real property. As Growthpoint Securityholders own both a unit in this trust and a share in the trust’s manager (Growthpoint Properties Australia Limited), there is no fee leakage to other parties (i.e. no payment of external funds management fees) and no conflicts of interest between the trust and the manager or between different funds. An investment in Growthpoint gives an investor exposure to all of Growthpoint’s assets and liabilities.
1. How do I update my contact details?
Please update your details via Computershare. Please note you will require your holder identification number.
2. How do I buy or sell Growthpoint securities?
Growthpoint securities trade on the ASX under the code ‘GOZ’. To buy or sell securities directly you must transact via an ASX approved broker (including on-line brokers such as NAB, E-Trade and Commsec). More details are available at asx.com.au/products/shares/buying-selling-shares.htm.
Growthpoint cannot sell direct to you other than via the DRP or, in certain limited circumstances, additional equity raisings.
3. Why are rights offers conducted over such short periods?
Growthpoint’s rights offer comply with standard ASX timetables for rights offers. These are designed to allow ASX listed entities to raise capital when required. Normally, Growthpoint needs to receive funds in accordance with the dates set out in rights offer booklets to enable completion of one or more property acquisitions.
4. Why does Growthpoint outsource its registry function to Computershare?
Most ASX-listed entities outsource this function to a third party registry provider. Growthpoint does not have the scale or in-house resources (including technology) to in-source this function. Computershare is one of the largest registry providers in Australia and is included in the ASX’s top 100 companies with a market capitalisation of approximately $7.0 billion. Growthpoint has chosen Computershare on the basis of its price and service offering. Growthpoint regularly considers Computershare’s performance (including any complaints or feedback received from Securityholders), pricing and services versus other providers to determine if it should continue to outsource this function to Computershare.
5. I have lost or not received a tax statement, holding statement or report. How can I obtain a replacement?
Contact Computershare in the first instance. Details are supplied below.
For direct holders for Growthpoint securities, most matters can be dealt with on-line at: www-au.computershare.com/Investor/
Note that you will require your holder identification number.
If you cannot resolve matters on-line, contact details for Computershare are:
- Address: Computershare Investor Services Pty Limited, Yarra Falls, 452 Johnston Street, Abbotsford, Victoria 3067 Australia
- Telephone: 1300 850 505 (within Australia) or +61(0)3 9415 4000 (from outside of Australia)
- Facsimile: +61(0)3 9473 2500
- Email: firstname.lastname@example.org
For indirect holders, i.e. holders that via fund, custodian or other third party, you should contact that party. Computershare will only be able to assist those with holdings directly on Growthpoint’s Securityholder register.
Growthpoint Properties Australia aims to provide each Securityholder with a professional and high level of client service in managing the Stapled Group. If you have a complaint, you may contact us in writing to our registered address or by email to email@example.com, detailing the complaint. A response will normally be provided within 15 working days. All complaints should be addressed to the Complaints Manager.
The Responsible Entity is a member of the Financial Ombudsman Service Limited (FOS), an external, independent complaints handling organisation. FOS can be contacted on 1300 78 08 08, should your complaint not be resolved by Growthpoint Properties Australia.
1. When and how does Growthpoint issue reports to Securityholders?
Growthpoint issues the following periodic reports in the following months and sends in hard copy to Securityholders who have elected to receive them (investor update are sent to all direct Securityholders):
- Half-Year Report: February
- Investor Update: May and October
- Annual Report: August
All of the above and all of Growthpoint’s other ASX announcements including details of capital raisings, acquisitions, DRP, distributions, leasing and divestments are available at asx.com.au/asx/statistics/announcements.do (please type “GOZ” under ASX Code and select the relevant timeframe).
2. Can I elect to receive communications from Growthpoint electronically?
Yes by providing your email address to Computershare (contact details above). Please note that some communications are also required to be mailed to you and communications may not be able to be sent to you electronically for legal, technological or cost reasons.
3. Does Growthpoint hold results calls that I can participate in?
Growthpoint does not hold results calls although it often releases webcasts through which senior management talk through the results and different aspects of the business.
You can also email any questions you may have to firstname.lastname@example.org (please include “Attention Company Secretary” in the subject line to ensure a quicker response).
1. When and how are distributions paid?
Growthpoint currently pays half yearly distributions, normally on the last business day of February and August each year. Securityholders can elect to receive distributions by cheque, direct debit or DRP (if available for a particular distribution). You can make your election by contacting Computershare (refer above for contact details).
2. Can I receive distributions direct into my bank account?
For all Australian Securityholders and investors in many other countries, yes, you can receive distributions paid in your local currency direct to your bank account. You can elect this method by contacting Computershare (contact details above).
3. Why aren’t distributions paid quarterly?
Growthpoint does not consider the additional cost and risk associated with quarterly distributions justifies the benefit that some Securityholders may derive from more regular distributions.
4. Are distributions or capital guaranteed?
No. Like most ASX-listed investments, distributions from and investments in Growthpoint are not guaranteed. An investment in Growthpoint comes with a risk of capital loss and distributions not being paid, distributions not meeting guidance and distributions not rising as fast as anticipated.
Distribution Reinvestment Plan (DRP)
1. What is the DRP?
The DRP or distribution reinvestment plan gives Growthpoint’s Securityholders a way to increase their holding in Growthpoint securities through reinvesting their distributions into additional Growthpoint securities. The issue of DRP securities is made without brokerage or trading fees and is typically at or below trading prices.
2. How is the DRP price determined?
For each distribution where the DRP is in operation, a 10-day volume weighted average price (“VWAP”) is calculated from the second trading day after the record date. If a discount is applicable, it will be applied to this VWAP. For example, for the August 2014 distribution, the record date was 30 June 2014, the VWAP or average ASX price from 2 July to 15 July 2014 was $2.47 so the final DRP price, after taking off the announced 2% discount, was $2.42.
3. Why does Growthpoint have a DRP?
In addition to the benefits to Securityholders noted above, to date Growthpoint has been able to use DRP proceeds for acquisitions and the DRP has less costs for Growthpoint than other forms of equity raising.
4. Will the DRP always be available?
Securityholders should not assume that the DRP will always be on. The Board make a determination in respect of each distribution and announce this to the ASX. If the Board does not consider there is any need to raise additional equity for past, current or future acquisitions, it is likely that the DRP will be suspended.
5. Will GRT always elect to participate in the DRP?
GRT is independent from Growthpoint and makes its DRP election based on its own circumstances from time to time. To the date of this report, GRT has participated in all five DRPs.
6. How do I elect to participate in the DRP?
Elections must be made via Computershare (contact details above). Growthpoint cannot accept any DRP elections directly.
7. How do I cancel my participation in the DRP?
DRP elections can be cancelled at any time by contacting Computershare (contact details above). Growthpoint cannot accept any DRP elections directly.
8. Can I elect only part of my distributions into the DRP?
Yes, part elections can be made by contacting Computershare (contact details above). Growthpoint cannot accept any DRP elections directly.
9. When can I change my DRP election?
You can change your DRP election at any time. However, the instructions recorded with Computershare at the close of the business on the trading date immediately following each record date (normally on or about 2 January and 1 July each year) will apply. If the DRP is suspended at any time, your previous election will continue until changed by you.
1. Why was tax taken from my distribution?
Withholding tax will ordinarily be deducted if you are an Australian tax resident but have not supplied your tax file number to Computershare (contact details above and please note that you must supply for each separate holding represented by a separate holder identification number or HIN) or if you are not an Australian tax resident.
2. When will I receive a tax statement?
Tax statements are mailed at the end of August each year in respect of the previous financial year. Contact Computershare if you have misplaced or not received your tax statement (contact details above).
3. Does Growthpoint pay tax?
Growthpoint is subject to various State taxes primarily as an employer (payroll tax) and as a land owner and acquirer (land tax and property duty). As a majority of the value of the Group is comprised in Growthpoint Properties Australia Trust, which will not normally pay tax itself, minimal Commonwealth taxes are payable (other than GST which is generally recoverable). However, in Australia, taxes are payable on distributions from Growthpoint Properties Australia Trust by investors so distributions by Growthpoint to you may become taxable. You should obtain tax advice from a suitably qualified professional and refer to your annual tax statement for more details.
4. Why does Growthpoint not provide franking credits?
Franking credits aim to assist Australian investors avoiding paying tax twice. A franking credit provides credit for tax already paid by a company in which an Australian taxpayer has shares. As all of the distributions currently come from Growthpoint Properties Australia Trust which does not pay income tax, there is no credit available for tax previously paid.
Growthpoint Properties Australia Limited currently pays a minimal amount of tax so if this company declares a dividend in the future it may be able to provide franking credit to eligible Securityholders.
About Growthpoint Properties Limited of South Africa ("GRT")
1. Who is GRT?
GRT is the largest, listed property company in South Africa with assets over A$11 billion and a market capitalisation over A$7 billion. It is fully diversified owning quality retail, office and industrial properties in South Africa, a 50% stake in Cape Town’s V&A Waterfront (the other 50% is held by the Public Investment Corporation) and a 65% stake in Growthpoint. Refer to Growthpoint South Africa for further details on GRT.
2. What are GRT’s intentions for its holding in Growthpoint?
GRT operates independently from Growthpoint and, as a result, Growthpoint cannot answer on its behalf. However, GRT has announced that it intends to be a long term owner of Growthpoint and would like to maintain ultimate control of Growthpoint but is prepared to be diluted over time. GRT, as a separately listed and run entity, reserves its ability to change this approach at any time if considered in the best interests of its own shareholders.
3. Do GRT and Growthpoint have separate boards of directors?
Yes. They operate independently and in accordance with the requirements of their respective jurisdictions and stock exchanges. They also have different Chairmen, CEOs and employees.
4. How many GRT directors are on Growthpoint’s Board?
Currently, there are three GRT directors on Growthpoint’s board including GRT’s independent Chairman, François Marais, Chief Executive Officer, Norbert Sasse, and Managing Director, Estienne de Klerk.
5. Are GRT and Growthpoint run as separate businesses?
Yes. Each has separate boards, management teams, staff, operations, policies and procedures. Although they work collaboratively, Growthpoint benefits significantly from GRT (refer to page 46 of the 2015 Annual Report for more details) and GRT ultimately controls Growthpoint, each could continue to operate without the other.
Directors and employees
1. Who are Growthpoint’s directors?
Growthpoint’s Board comprises seven experienced directors from Australia and South Africa with extensive experience qualifications, skills and knowledge in property, finance, investment banking and law (among other areas). A majority of directors are independent and have significant experience in listed property.
2. Who are Growthpoint’s senior managers?
Growthpoint’s executive management team comprises four executives including one executive director with extensive experience in property, accounting and law (among other areas). Growthpoint has 12 other employees.
3. How much are directors and senior managers paid?
Refer to pages 39-47 of the 2016 Annual Report for details on director's and senior managers remuneration.
4. Do directors and employees own Growthpoint securities?
Yes, all directors and a majority of employees do.
1. If my query is not dealt with above or in this report, where can I get more information?
Growthpoint’s website includes a large amount of information in relation to the Group and is regularly updated. It also includes contact information should you require further information.
2. The website still did not answer my query. Who should I contact?
If in relation to updating contact details, replacement or missing statements or reports, DRP elections, tax statements or tax withheld, please contact Computershare in the first instance (details supplied above).
If in relation to another matter, if you would like to provide feedback or if Computershare is unable to assist, please email email@example.com or phone 1800 260 423 (cost of a local call if from within Australia