AUS
NZ
UK
CA
USA
IND
Highlights
- Growthpoint properties is an ASX-listed REIT firm which is focused on investing in offices, industrial and retail sectors across Australia
- In FY23, the company witnessed 6.7% increase in NPI, driven by acquisition of GSO Dandenong, drawing of bank guarantee at 100 Skying terrace, acquisition synergies and receival one-off early surrender payment
- The expected distribution for FY24 is 19.3 cents per security
Growthpoint Properties Australia (ASX:GOZ) is a real estate investment trust (REIT) company that invests in properties in the industrial and retail sectors and offices across Australia. The company operates through Industrial property investments, office property investments and funds management segments.
The 1.75 billion market cap firm witnessed a 4.3% YoY fall in funds from operations (FFO) to AUD 204.80 million in the financial year 2023 (FY23). However, during the reported period, NPI increased by 6.7% YoY due to acquisition of GSO Dandenong, drawing of bank guarantee at 100 Skying terrace, acquisition synergies and receival one-off early surrender payment.
As at 30 June 2023, debt of GOZ was hedged at 70.5% and gearing was 37.2%.
Recent business update
Through an ASX-update dated 20 December 2023, the company informed about the distribution of 9.65 cents per security for the six months ending 31 December 2023. The distribution announced was in line with distribution guidance of FY24. Through the release, the company also informed that it has maintained its FFO guidance for FY24 between 22.5 to 23.1 cents per security.
Outlook
The company is in a position to navigate through the cycle with a better-than-expected WALE offering secure property rental cash flows, ample covenant headroom, a decent capital structure and asset management capability.
In FY24, expected distribution is 19.3 cents per security, assuming an average FY24 floating rate of 4.35%.
Share performance of GOZ
GOZ shares surged by 2.15% to close at AUD 2.38 apiece on 4 January 2024. Including today’s gain, GOZ’s share price witnessed a fall of 20.40% in the last 12 months and recorded a rise of 10.70% in the last three months.
The 52-week high of GOZ is AUD 3.52, recorded on 3 February 2023, and the 52-week low is AUD 1.97, recorded on 31 October 2023.
Note 1: Past performance is neither an Indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, and currency, is 04 January 2024. The reference data in this report has been partly sourced from EODHD/Others.
Disclaimer
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