Growthpoint Properties' industrial portfolio delivered the highest returns to investors in its sector for the three years ending December 2015, as recorded in the MSCI database. It was named the top-performing industrial portfolio at the recent MSCI South African Real Estate Investment Conference.
The portfolio of industrial properties owned by Growthpoint achieved total returns of 18.9% for the three-year period, significantly outclassing the MSCI benchmark return of 15.5%.
As a leading provider of research-based indexes and analytics, MSCI's total return calculations are entirely numeric and based on validated property and financial results in its database – no subjective judgements are made, no qualitative criteria are considered.
With its sector-leading returns, Growthpoint won the South African Real Estate Investment Award for the industrial sector.
Engelbert Binedell, Growthpoint Industrial Division Director, comments: "Growthpoint has assembled a well-diversified portfolio of industrial properties, making it highly defensive. Its performance is driven by a great team that works hard to develop solid relationships with our clients and the broking community, and collaborate with developers to grow value from the portfolio. In this tough market, our relationships, flexibility and creative deal making are all strategic advantages."
Growthpoint is invested in a portfolio of 227 industrial properties in South Africa, valued at R11,bn and covering a whopping 2.3m square metres of gross lettable area. The portfolio offers exposure in every significant industrial node in the country.
Binedell adds: "We are driven to create value for all our stakeholders through innovative and sustainable property solutions. However, it is also pleasing to be acknowledged for our performance by a respected organisation like MSCI."
Stan Garrun, Executive Director of MSCI, comments: "This recognition comes down to pure performance and quality of management extracting value through investing in real estate. We congratulate Growthpoint. MSCI is proud to recognise consistent top performance of the property funds – listed and unlisted – in our database. In this way, we showcase superior returns and illustrate the fundamental value of investing in commercial property."
MSCI's database covers 67% of all institutional and professionally managed property in South Africa and about 72% of market capitalisation of the listed property funds on the JSE.
Growthpoint is the largest South African primary listed REIT with the vision to be a leading international property company providing space to thrive. It creates value for all its stakeholders through innovative and sustainable property solutions.
The 35th largest company on the JSE, Growthpoint is a Top 5 constituent of the FTSE EPRA/NAREIT Emerging Index and has been included in the FTSE/JSE Responsible Investment Index for seven years running. It is the most liquid and tradable way to own commercial property in South Africa.
It owns and manages a diversified portfolio of 526 property assets spanning 6.8 million square metres. This includes 467 properties in South Africa, 58 properties in Australia through its investment in Growthpoint Properties Australia (GOZ) and a 50% interest in the properties at V&A Waterfront, Cape Town.