Growthpoint Properties Australia (GOZ) H1 2025 earnings summary

Executive summary

• Assets under management reached AUD 5.4 billion across 65 properties, with AUD 4.1 billion directly held and AUD 1.3 billion managed for third parties, supported by strong leasing and high occupancy.

• 1H25 performance driven by strategic capital management, high-quality portfolio, and momentum into 2H25.

• Strategic partnerships and asset sales released AUD 335 million in capital, reducing gearing and supporting growth initiatives.

• Sustainability initiatives advanced, with Net Zero Target on track for July 2025 and AUD 1.15 billion in sustainability-linked loans.

• Updated purpose: "Creating Value Beyond Real Estate," emphasizing stakeholder impact and sustainability.

Financial highlights

• FFO for 1H25 was AUD 88.8 million, down 2.5% year-over-year, with FFO per security at 11.80c and distribution per security at 11.20c, including a one-off 2.10c.

• Statutory net loss after tax of AUD 98.7 million, improved from AUD 120.4 million loss in 1H24, mainly due to lower property devaluations.

• NTA per security at AUD 3.21, down from AUD 3.45 at June 2024.

• Funds management revenue up 43.9% year-over-year to AUD 5.9 million, driven by new fund launches.

• Gearing reduced to 38.8% through AUD 335 million in asset sales and capital recycling.

Outlook and guidance

• FY25 FFO guidance maintained at 22.3–23.1c per security; distribution guidance at 20.3c per security, including a 2.1c one-off.

• Guidance assumes no significant market movements or unforeseen circumstances for the remainder of FY25.

• Key swing factor for second half is transaction fees from new fund launches; no material lease surrender payments expected.

• Optimistic outlook driven by population growth, expected interest rate cuts, and reduced new supply due to high construction costs.