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Highlights
- Growthpoint Properties has upgraded its Funds From Operations (FFO) guidance for FY22, showing at least 7.8% growth.
- The REIT group has also announced a distribution of 10.4 cents per share for the six months ending 30 June 2022.
- Given the positive update, GOZ share price has bounced back from its three-month low today.
Growthpoint Properties Australia (ASX:GOZ) has upgraded FY22 guidance today (23 June). The real estate investment trust (REIT) also announced distribution for six months ending 30 June 2022.
Growthpoint REIT invests in high-quality industrial and office properties across Australia. The update features upgradation to its FY22 funds from operations (FFO) guidance. Alongside, this company has also released a preliminary draft of external valuations of Growthpoint’s property portfolio.
Share price performance
Post this announcement, GOZ share price is up 3.244% from its previous close. Bouncing back from a three-month low, GOZ shares were trading at AU$3.50 at 11:52 AM AEST. In last one month, GOZ share price has lost about 8.38% while on year-to-date basis, it has lost more than 20%. As of date, Growthpoint holds a market capitalisation of AU$2.61 billion.
Key highlights
Image source: © 2022 Kalkine Media ®, Data Source-ASX announcement dated 23 June’22
FY22 Guidance upgrade
Growthpoint has upgraded its FY22 FFO guidance issued in December 2021. The guidance upgrade is around 27.7 cps, showing a minimum 7.8% growth over FY21. It is based on the assumption that there will be no significant market movements or unforeseen circumstances in the remaining financial year.
Details of external valuations of Growthpoint’s property portfolio
Growthpoint has reportedly engaged independent external valuers for revaluation of 30 of its 582 properties. These are almost 58% of the group’s portfolio in value terms as of 30 June 2022. As announced by the company, a preliminary draft of the external valuations indicates an AU$64.5 million uplift. It is a 2.2% increase in value from the book value as of 31 December 2021.
- The Group has revalued 17 of its 31 industrial assets, being 61% of its industrial portfolio. Value of the Group’s industrial portfolio has increased by AU$69.8 million, 7% higher from31 December 2021 book values. Rent growth is reportedly the driver for uplift.
- The company has also revalued 13 of its 27 office assets, being 56% of its office portfolio. Group’s office portfolio has notably decreased, by AU$5.3 million, 0.3% lower from book value on 31 December 2021.
However, these valuations are subject to finalisation and audit and as per the group there are chances of an upward or downward revision. The final audited valuations are expected to be a part of Growthpoint’s FY22 results, anticipated to be released by 16 August 2022.
Dividend distribution by Growthpoint
The REIT operator has announced a distribution of 10.4cps, for six months ending 30 June 2022. As of now the securities are to go ex-dividend on 29 June and the record date shall be 30 June 2022.
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