Growthpoint is our largest & most robust property Co. Whilst taking a big knock, it owns largely quality assets & is well diversified. Retail, office & Oz each contribute ±24% to net property income. Whilst retail has suffered badly, office & GOZ have held up relatively well
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Growthpoint: I am assuming (hopefully conservatively) that distributions can, over the next 18mths, recover to 60% of 2019 levels. Thus puts GRT on a forward yield of 9.35% at a price of R14. Investors will have to wait for divs but it is generous enough to compensate imo.
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Growthpoint is unlikely to breach covenants. They expect valuations to decline by 10% - 15% but it would take a drop of 30% for GRT to be in breach. They further have unutilised facilities & cash of R2bn and are traditionally well received in the bond market.
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