REITs: C&R impact for GRT and VKE

While the exact details of the proposed offers from either Vukile (VKE) or NewRiver REIT is not available yet, we offer an overview of Capital and Regional’s (C&R) contribution to Growthpoint’s (GRT) distributable income and LTV. We present a sensitivity analysis of how possible offer prices would impact distributable income and LTV’s for both GRT and VKE. We also provide the segmental profit and loss information for C&R from GRT’s annual reports from purchase in 2020. We use R2.8bn as a base case offer price for 68.1% (R4.11bn for 100%), which is a 25% premium to the closing value of Capital and Regional Plc on 24 May 2024.