CEO of Growthpoint Properties Limited Norbert Sasse attributes this positive
performance to growing revenue streams, tight cost controls, aggressive
leasing, astute financial and asset management, as well as solid contributions
from it’s investments in the V&A Waterfront and Growthpoint Properties Australia
(GOZ) (ASX share code: GOZ).

“Economic conditions continued to improve, albeit at a slow pace. Positive indications
are evident in several areas, specifically decreased property vacancies in our
portfolio,” says Sasse. “These signs are encouraging and Growthpoint’s
full-year distribution should be in line with this result.”

Growthpoint Properties is the largest South African listed property company and is included
in the JSE ALSI Top 40 Companies Index, with a market capitalisation of R31,6
billion at 31 December 2011. For the first time ever, Growthpoint’s property
assets exceed R50,0 billion.
Its quality portfolio of 412 directly-owned properties in South Africa is valued at
R33,6 billion and, through its 61.0% held subsidiary GOZ, it has a stake in 40
properties in Australia which are valued at R11,7 billion. It also has a 50%
interest in the V&A Waterfront with properties valued at R9,7 billion.
Growthpoint’s distributable earnings grew 14.8% during the period. Revenue increased by
26.1%, driven largely by its acquisition of the V&A Waterfront and greater
revenue from the GOZ portfolio, as well as contractual rental escalations from
its SA property portfolio.
Over the past 12 months, GOZ has acquired nine office properties as part of its
growth and diversification drive, partly paid for through two successful rights
offers of R102,6 million in July 2011 and R166,4 million in January 2012. GOZ’s
portfolio value has more than doubled over the last three years. The portfolio
has also diversified from purely industrial property to a spread of 41% offices
and 59% industrial property.
Growthpoint’s total distributions income received from GOZ grew by 43% during the period
following its increased investment, and we received a total annualised return
of 43.6% on our investment,” reports Sasse. Growthpoint’s 61% holding in GOZ,
valued at R2,8 billion, was acquired at a total cost of R2,0 billion.
Growthpoint’s earnings from the V&A Waterfront were in line with expectations for the
period. Growthpoint bought 50% of the V&A Waterfront in Cape Town for R4,9
billion in partnership with the PIC on behalf of the GEPF and took transfer of
the property in June 2011. “The overall transaction, including debt funding,
has not proven dilutive to Growthpoint due to debt funding and capital raising
secured at better levels than anticipated at the time of the acquisition. It’s
a prime asset that is performing positively, at original projection levels,”
says Sasse.

He reports overheads at the property have been tightly managed and, consistent
with development plans for the precinct, construction of the Allan Gray head
office at the V&A Waterfront is underway.
Sasse points out that during the period, Growthpoint elected to expense the interest cost
on the bulk it purchased at the V&A Waterfront, instead of capitalising it.
“Capitalisation of the interest would have resulted in distribution growth of
around 8%, however we felt that it would artificially increase the value of the
bulk,” explains Sasse. “We continue to base our distributions on sustainable
income from rentals.”

Tight cost controls saw Growthpoint’s cost-to-income ratio reducing from 23.0% to
22.7%. This is not withstanding notable growth in multi-tenant offices in its
GOZ portfolio, characterised by higher cost to income ratios, and the fact that
soaring administered costs continue to drive up property expenses, especially
electricity and rates and taxes.

“We continue to face administered costs that are increasing at levels much higher
than inflation and contractual lease escalations,” says Sasse. This has a
triple negative effect on property owners. “We pay more and get less. In
addition, we’re forced to use our own funds to deliver these services
ourselves, from providing refuse removal to electricity meters”.
Growthpoint Properties’ SA portfolio is well diversified across retail, office and
industrial property sectors. Sasse reports that all sectors are performing
ahead of budget and the total SA portfolio vacancy level reduced by a full
percentage during the period, to a healthy 4%.
“The retail portfolio continues to unlock portfolio value through expansions and
refurbishments,” says Sasse. While the retail portfolio’s vacancy level has
increased from 2.9% to 3.6%, this vacancy includes space set aside for
development in three shopping centres – Brooklyn Mall, Longbeach Mall and River
Square. Excluding this, the vacancy level is 2.7%.
Solid demand dominates in Growthpoint Properties’ industrial portfolio, with
vacancies falling from 4.1% to 2.7%, and several new demand-driven
redevelopments improving portfolio quality. Disposal of non-core industrial
properties also contributed to improved occupancy levels.

During the period Growthpoint sold 13 properties for a total R290,6 million, realising
a profit of R129,3 million on cost.  As part of Growthpoint’s Brooklyn
Mall asset swap deal in respect of the adjoining Design Square, Growthpoint now
owns 75% of the combined asset.

Lacklustre demand continues to prevail in the office sector,
but Growthpoint’s aggressive leasing has resulted in its office vacancies
decreasing from 8.1% to 6.7%.
Growthpoint’s property assets continued to benefit
from the strong support of its financial structures. In July 2011 Growthpoint
successfully completed a R1,8 billion equity raising, which was used to repay
R2,0 billion CMBS notes. During the period it also undertook two further bond
issues totalling some R760 million, and three commercial paper issues totalling
R900 million.  The additional equity raised in July 2011, reduced the SA
loan-to-value (LTV) ratio from 37.8% to 33.1%.  A number of
forward-starting interest rate swops concluded in prior years, became effective
from 1 July 2011 and results in Growthpoint’s SA fixed debt increasing from 77.1%
at June 2011 to 93.1%.

“Increased participation in the bond market diversifies our debt funding sources and
levels of unsecured debt. The bond market is also providing cheaper funding
than traditional funding in the current climate,” says Sasse. “Growthpoint
continues to enjoy good access to liquidity, from both bond and bank markets.”

Growthpoint’s first BEE transaction was refinanced during the period and it received R306
million as partial repayment of the loan. AMU Trust, Growthpoint Properties Limited’s
largest BEE shareholder, refinanced debt originally raised in 2005 and, by
doing so, reduced Growthpoint’s mezzanine debt participation to R200 million.
This remaining debt will be serviced by the AMU Trust semi-annually. The trust
owns around 5.9% of Growthpoint Properties and represents the interests of
Amabubesi Investments, Miganu Investment Holdings and Unipalm Investment
Holdings.
Growthpoint continued to achieve admirable levels of tradability and liquidity in the
property sector. On average more than 72 million Growthpoint Properties linked
units traded each month during the period. The monthly average value traded
grew from R1,1 billion at 30 June 2011 to R1,3 billion at 31 December 2011.
Growthpoint Properties’ continued inclusion in the JSE’s Socially Responsible Investment
Index (SRI Index), announced in December 2011, follows its positive
environmental, social and economic sustainability practices and corporate
governance. This is the third consecutive year of Growthpoint’s inclusion in
the JSE SRI Index.

With its SA retail and industrial portfolio’s almost fully let, Growthpoint has
targeted increased developments to grow its portfolio. “Acquisition,
development and redevelopment projects approved and underway currently total
some R1,4 billion,” reports Sasse. “Growthpoint has also picked up a few
strategic land parcels, including a prime site opposite the Rosebank Gautrain
Station.”

Sasse explains that besides growth opportunities, developments offer yields of up to 2%
higher than acquisitions of completed properties that are fully tenanted.
“Development risks are mitigated and, in the current market, we are confident
that this is an effective strategy for portfolio and distribution growth,” says
Sasse.

Grant Elliott, Regional Manager Cape Town for developers Redefine Properties, says
the park’s location provides tenants with a distinct distribution edge.  Elliott says in line with the newer  industrial parks, CTX  is set in beautifully landscaped surroundings with wide internal roads to accommodate larger trucks and containers.  “The light industrial units which range
between 325m² – 550m² have all been designed with double volume space allowing
ample natural light. They also have drive-in roller shutter access to facilitate loading and off loading.”
Security is always a prime concern and the entire park is protected with 24 hour state of the art security.  Ambasam Pharmaceuticals and Menzies Aviation have already snapped up space in the first phase leaving a total of 4107m² available for letting.
“We believe the park’s close proximity to the airport, access to both the N2 and N7 coupled with its high visibility from both
Borcherd’s Quarry and Freight Agents Road make it an ideal location for any distributor. We have already seen  high profile retailers like Pick n’ Pay and Massmart establishing their distribution centres in the nearby location and believe the area  value will continue to  retain and grow in value,” concludes Elliott.

“The internationally-recognised REIT structure exists in countries such as the US,
Australia, Belgium, France, Hong Kong, Japan, Singapore and the UK,” explains
Estienne de Klerk, REIT Committee Chairman of the Property Loan Stock
Association (PLSA), which is spearheading the SA initiative to establish a
best-of-breed REIT vehicle. “Introducing the REIT structure will bring SA
listed property investment in line with international norms.”

Over the past 10 years, listed property has become the most active sector on the JSE
in terms of new listings, mergers and acquisitions. It has shown resilience and
relevance. It has also grown, matured and volunteered an extremely high level
of stakeholder transparency.

Presently the listed property sector comprises five Property Unit Trusts (PUTs), but
about 20 Property Loan Stocks (PLSs), the largest of which are major counters
on the JSE: Growthpoint Properties, Redefine Properties and Hyprop Investments.
These numbers reflect the industry’s preference for the PLS structure. PLSs
have also been responsible for the sector’s growth, and represent its most
thriving counters.

The listed property sector has been working with National Treasury for over five
years to formalise REIT legislation in South Africa. Neither of the current
structures – PLS or PUT – offers the uniformity and simplicity to facilitate
international investment. In addition, there has been some potential for tax
uncertainty, which is in itself enough to deter some international investors.

“The REIT structure typically provides for the flow-through of net rental to the
investor, after expenses and interest. This income is ultimately taxed in
investors’ hands, as is normal,” says de Klerk.

REIT legislation discussions were initially slow as a result of the various industry
complexities and a number of immediate issues facing National Treasury,
highlighted by the global financial crisis.

However, the April 2011 tax legislation amendment bill raised the priority of REIT
legislation, particularly the proposed Section 8G which deals with debentures
with no specified termination date.

“Had it not been willingly suspended by National Treasury, this section would have
resulted in the debenture interest distributed out of PLS companies being taxed
as a dividend,” notes De Klerk. “This would have destroyed significant value in
the listed property sector.”

The proposed amendment was never intended to have a negative effect on the sector
and was, in fact, designed to prevent tax leakage in other structured finance
transactions. National Treasury suspended Section 8G until the successful
completion of REIT legislation, which it has stated is a priority and is
intended for finalisation by the end of 2012 or early 2013.

De Klerk reports that considerable progress is being achieved with the potential
proposed REIT regulations, as well as seeking an appropriate regulatory
framework and efficient REIT structure for South Africa. “National Treasury has
committed a vast deal of time to understanding the listed property industry and
defining areas to benefit from regulation and excluding those that won’t”.

The sector, through the PLSA, Association of Property Unit Trusts (APUT) and
appointed REITs advisors, has had various productive meetings with the National
Treasury Tax Policy Unit as well as the JSE Limited and Financial Services
Board. In December 2011, National Treasury met with UK and European experts
including representatives of the European Public Real Estate Association (EPRA),
and a KPMG experienced UK revenue services specialist to learn about
best-of-breed practices in the UK and globally.

It is expected that internally- and externally-managed REITs will be included in
the legislation. De Klerk points out that while providing flexibility in
management structure, the worldwide trend is for investors to favour an
internally-managed company, however local REIT factors are considered.

“We anticipate a governance framework consistent with modern best practice,” says
de Klerk. “Investors should be able to vote on large transactions and appoint
or remove those vested with management power.” De Klerk further points out that
additional governance protection results from being listed on the JSE, ensuring
the transparent, effective, professional management essential to protect
investors.

The new legislation should also give companies currently in the listed sector the
opportunity to access the new SA REIT structure, with no entry charge. This
structure should also deal with the unique variations and competitive
differences of the sector’s component companies, without stifling operational
efficiency or having unintended consequences and inhibiting the ability to
respond appropriately to changing circumstances and conditions.

“The new SA REIT structure should provide tax certainty and efficiency relating to
distributions. It should also cure anomalies in the availability of tax
deferral or roll-over relief for mergers and acquisitions,” says de Klerk.

A single unified umbrella body for listed property in SA is also expected to
emerge in the near future with the PLSA and APUT merging.

~ ends ~

The South African Listed Property Index recorded a total return of 4.75
percent in January 2012, according to the Catalyst Fund Managers.

For the last 12 months South
African Listed Property as an asset class recorded the highest total return
(19.08 percent), followed by SA Bonds (13.49 percent), Equities (10.83 percent)
and SA Cash (5.70 percent).

The Property Loan Stock Index and Property Unit Trust Index recorded returns
of 5.36 percent and 3.14 percent respectively over the same period.

The managers say the historic 12 month rolled yield of the South African
listed property sector ended the month at 7.56 percent (7.93 percent as at 31
December 2011).

For the last 12 months South African Listed Property as an asset class
recorded the highest total return (19.08 percent), followed by SA Bonds (13.49
percent), Equities (10.83 percent) and SA Cash (5.70 percent).

They say the traditional drivers for total property returns remain intact
with expectations that the current income yield plus prospect of income growth
will drive the total return over the long term.

As at the 31 January 2012 the historic rolled income yield of South African
listed property was 7.56 percent.

“The outlook for distribution growth in 2012 remains reasonable and the
sector is likely to deliver growth in income distributions of approximately 5
percent”.

Assuming distribution growth of 5 percent the forward yield from listed
property at 31 January 2012 is 7.94 percent.

The risk to total returns in the short term is a weakening in capital
markets and/ or deterioration in the income growth outlook, explain the
managers.

“Listed property is a long term investment and over the long term the total
return from listed property will be driven by the income yield plus growth in
that income.”

Meanwhile Dipula Income Fund A-units which listed on the Johannesburg Stock
Exchange (JSE) in August 2011 is tipped as a top prospect in the new seven
property sector listings since November 2010.

The company owns a diversified property portfolio, located throughout South
Africa and enjoys a retail bias to low income households.

According to Keillen Ndlovu, Stanlib head of property funds, Dipula A-units
offer investors looking for secure, predictable income streams an attractive
initial yield of 9.5 percent.

“Dipula A-units also provide almost guaranteed income growth of 5
percent per annum and is in line with the market, but is more certain than
other single-unit property stocks,” he says.

Izak Petersen, chief executive
officer of Dipula Income Fund explains that it will continue to seek portfolio
and income strengthening opportunities for its investors.

The income protection that Dipula A-units offer is similar to bonds, says
Ndlovu.

Dipula features an acquisitive growth strategy, excellent BEE credentials
thanks to a black-owned asset manager and a sizable stake in the fund by
management.

Izak Petersen, chief executive officer of Dipula Income Fund explains that
it will continue to seek portfolio and income strengthening opportunities for
its investors.

“It is important to acquire assets that will show resilience in all market
conditions” says Petersen.

Petersen says they always do a thorough fundamental analysis of the growth
potential of each asset they acquire at the same time ensuring that all is done
not to compromise income in the short term.

“Of course the key is to ensure that our portfolio can stand the test of
time in terms of capital and income growth and we need to therefore balance
these key considerations at all times”.

He notes that the B units are excellent value at a forward yield of
approximately 11.3 percent at the current trading levels.

Dipula’s value proposition is solid and while they have A and B units
investors should rest assured that Dipula is building a good enterprise that
should deliver for both unit holders.

He believes that both units offer good value to investors and B unit holders
should be handsomely rewarded while the A units will continue to enjoy the
added security though also having potential upside on capital growth.

The company announced a R247.8 million purchase of three retail properties
in late December 2011 and these acquisitions remain subject to several
approvals.

Once final, they will grow Dipula’s portfolio to 178 properties valued over
R2.3 billion, covering 463 000 square metres.

“We continue to build a portfolio that will deliver growth in distributions
and capital for our investors, increasing critical mass, asset quality and
diversification will drive performance.”

Ndlovu also identified Vividend Income Fund, Synergy A-units and Rebosis as
currently offering good buying opportunities.

However, it is important to note that most of the new listings are not very
liquid.

Liquidity is likely to improve over time as they do property acquisitions
partially funded with equity”, he says.

Although not tipped as a hot buy, Emira Property Fund has been disposing
various non-core properties in its portfolio with a view to improving the
quality of the portfolio to enhance returns for its investors.

Chief executive officer James Templeton explains that the disposal campaign
commenced three years ago when a strategic review of the portfolio identified a
number of properties from across the portfolio for sale.

Most of these properties were subsequently disposed of and in 2011, 16
properties were identified for disposal, of which nine have already been sold
at prices on or near their asking prices.

Emira has raised in excess of
R260 million since the commencement of its 2012 financial year on 1 July 2011
through the sale of eleven non-core properties in its portfolio. Included in
the disposals was the 16 159 square metre B-Grade, Hurlingham Office Park off
the William Nicol Highway in Sandton , for R113 million and the 8 982 square
metre Gift Acres shopping centre in Lynwood, Pretoria , which fetched R40
million.

“Largely through legacy reasons, Emira’s portfolio was heavily weighted
towards B-Grade offices where office vacancies are high, so we took the
opportunity to diminish our weighting in this property category.”

Time was spent by the Emira property management team on managing certain
small office assets, which have been subsequently sold.

In future, he says, their time will be more productively spent on managing
the fund’s higher value property assets.

Emira has raised in excess of R260 million since the commencement of its
2012 financial year on 1 July 2011 through the sale of eleven, non-core, properties
in its portfolio.

Included in the disposals was the 16 159 square metre B-Grade,
Hurlingham Office Park off the William Nicol Highway in Sandton, for R113
million and the 8 982 square metre Gift Acres shopping centre in Lynwood,
Pretoria, which fetched R40 million.

Emira says the proceeds from the sale of the properties will be used to fund
new developments including the Corobay and Podium office developments in Menlyn
, Pretoria.

Some of the money may also be deployed to the Fund’s participatory interest
(PI’s) repurchase programme which commenced late in 2011.

The Fund seeks to buy back its JSE-listed PI’s up to a total value of R75
million in a move which is expected to be earnings enhancing for existing Emira
PI holders.

Other properties disposed of by Emira in the most recent round of property
disposals include the 2 450 square metre C-Grade industrial property,
Starsky House in Kramerville (R7 million), Dresdner House in North Road,

Dunkeld West which at 834  square metres was Emira’s smallest office
building and it sold for R11.2 million,  the 1 524  square metre
Linkview office development in Kent Avenue, Randburg (R7.3 million) and the 1
803 square metre Ciros House off Homestead Road in Rivonia (R9.7 million).

He adds that the balance of the for-sale assets are being currently actively
marketed. – Denise Mhlanga

Redefine
Properties, a leading listed property loan stock company,  is proud to announce it has concluded a three
year sponsorship with reigning Absa Currie Cup champions, the MTN Golden Lions.

Redefine
Properties join the Golden Lions Rugby Union as a co-sponsor of the MTN Lions
team, with the Redefine logo being featured on the players’ jersey for both the
Vodacom Super Rugby and Absa Currie Cup competitions.

Golden Lions
Rugby Union president Kevin de Klerk said, “On the back of our 2011 Currie Cup
victory, we are extremely grateful and honoured to have a company with the
stature of Redefine join our ranks as one of our treasured sponsors.

“We at the
Lions have been building our vision to become a winning culture, a powerhouse
of rugby and centre of excellence. In the modern game, this cannot be done
without the gracious support of our sponsors. We welcome Redefine today, and
look forward to a successful and mutually beneficial working relationship over
the next three years”.

“We are
delighted to be part of this winning partnership with the MTN Lions. We
have  investors, clients and tenants
throughout South Africa , many of whom
are passionate rugby supporters. The opportunity to partner with the MTN
Lions was one we felt we just could not let pass.   Their performance last year was exemplary
and we are excited they will go from strength to strength this year and provide
us with an ideal platform to build our brand. We look forward to an
exhilarating 2012 series,” concludes David Rice, Chief Operating Officer of
Redefine Properties.

In terms of section 122(3)(b) of the Companies Act, 71 of
2008, as amended and paragraph 3.83(b) of the JSE Limited Listings
Requirements, holders of Linked Units are advised that Sanlam Life Insurance
Limited (“Sanlam Life”) has notified Vukile that it has disposed of a
beneficial interest in the Linked Units, such that the total of all beneficial
interests in Linked Units held by Sanlam Life is now 4.89% of the total Linked
Units in issue, all of which are held by policy holders.

Business Day

Custom developed for Grundfos by
Growthpoint Properties Limited, the new building will span a significant
10,000sqm, with expansion possibilities. The tailor-made structure comprises
2,500sqm offices and 7,500sqm high-tech, high-spec warehousing for Grundfos’
South African business.

Grundfos is the world’s largest
manufacturer of circulator pumps, covering around 50% of the world market for
these pumps. It also produces other centrifugal pumps for industry, water
supply, waste water and dosing. Grundfos operates in over 40 offices worldwide
and has been in South Africa for the past 14 years. Grundfos South Africa is
responsible for sales in 45 other African countries.

Growthpoint Properties is the largest South
African listed property company with property assets valued over R35 billion
found throughout South Africa. Its portfolio of over 460 properties provides
office, industrial and retail space to leading businesses. It’s industrial
property portfolio spans of over 2,2 million square metres across 239 properties
valued more than R7 billion.

This transaction further cements the
association between the two companies. Grundfos currently occupies a
Growthpoint Properties office and warehouse building in Bedfordview. It’s
expected to take occupation of its new facility in early 2013 on a long-term
lease.

Grundfos’ new facility will be
superbly located in Meadowbrook, Germiston – an established industrial node
that provides excellent access to transport arterials and electricity.
Warehousing and offices will be consolidated in a single property at the new
facility. This strategic move provides many benefits for Grundfos, including
improved productivity and cost savings.

Grundfos’s new SA head office will
also be a groundbreaking green building, applying sustainable development
practices.

“Sustainable development is a key
concept at Grundfos,” says Jonathan Hamp-Adams, General
Manager Grundfos Africa. “It is vital that our
pumps display respect for the environment, especially energy consumption and
use of materials. We expect the same of our production facilities. They should
place as little strain as possible on our surroundings and the environment.”

Growthpoint Properties, SA’s leader in leasable
green business space, will develop an environmentally-innovative facility for
Grundfos. Growthpoint has developed two of only
10 buildings in SA to receive Green Building Council of SA Green Star (GBCSA)
certification so far. It also leads the real estate sector in carbon disclosure in Africa. It’s also
in the JSE’s Socially Responsible Investment Index (SRI Index) for the third
consecutive year for positive environmental, social and economic sustainability
practices and corporate governance.

“The results of Growthpoint Properties’ strong push in energy-efficiency
and green building will be applied at Grundfos’ new building – from design to
construction and operation,” says Growthpoint Properties Industrial Division
Head, Engelbert Binedell.

Demolition of the disused building on site will start
in February 2012 with extensive recycling of materials for reuse in the
development. The design and construction incorporate the best international
standards, adapted to South African conditions – from orienting the building to
energy-efficient lighting, motion sensors and rainwater harvesting.

“The intent is to develop a high tech industrial
facility that is at the forefront of green building design and sustainability,”
says Leon Labuschagne of Growthpoint Properties Development Division. “It’s important
to Growthpoint to apply the sustainable design and create excellent
functionality. It will incorporate the latest specifications in building
design: flat floors, high-lift roller shutter doors, backup electricity supply,
as well as recreation and entertainment facilities.”

Grundfos also contributed its specialist expertise
to the building’s design.

“In a continent like Africa where one
of the major problems is access to clean drinking
water, it is clear to see why the Grundfos priority area is water supply,” says
Hamp-Adams. “Focus is
also placed on commercial building services, industry and wastewater.”

This focus
will be applied to Grundfos’ own building.  It will feature solar driven pumps
including the new CRflex booster pump and in-line circulators to save not only
energy but water as well, this will be used to showcase their pumps in real
working conditions for customers to see pumps at work.

“In developing our new centre of operations, we
aim to be responsible, think ahead and innovate  in the same way we strive
to do all business,” says Hamp-Adams.

~ ends ~

The company said that despite current economic challenges,
it was still on track to meet its earnings forecast set out in the reverse
acquisition prospectus  of  Wichford  P.L.C dated July 2011.

Mike Watters, CEO for Redefine International, said that the
period since the Company’s year end in August 2011 had continued to be
dominated by the Eurozone Sovereign debt and EU banking crises. He said the
highlighted uncertainty and volatile economic environment that this has
created, continues to impact on the performance of the commercial property market.

“Consumer confidence has been affected, resulting in a
significant reduction in consumer spending and a knock-on effect on retailer
profitability.”

Notwithstanding these tough business conditions, the
Company’s underlying performance has remained robust.  “The covenant
strength of the UK Stable Income portfolio, strong performance of the Hotel,
German and Swiss portfolios and very solid contribution from Cromwell, the
Australian listed property trust  in which Redefine International owns a
24.3% stake, have more than offset the weaker performance
of the UK Retail portfolio, illustrating the benefit of our diversified
portfolio,” concludes Watters.