Growthpoint Properties Australia (GOZ) H2 2024 earnings summary

Executive summary

• Assets under management reached AUD 6 billion across 66 assets, with 57 directly owned office and industrial properties valued at AUD 4.4 billion and AUD 1.6 billion managed for third parties as of 30 June 2024.

• FY 2024 FFO of AUD 0.239 per security (23.9 cps) exceeded guidance, supported by strong leasing, disciplined capital management, and asset sales above book value; distributions of 19.3 cps met guidance.

• Statutory loss after tax of ($298.2m), driven by property revaluations and higher finance costs.

• Portfolio occupancy increased to 95% (from 93%), with a weighted average lease expiry of 5.7 years.

• Sustainability initiatives advanced, with over AUD 1 billion in sustainability-linked loans and Net Zero Target on track for July 2025.

Financial highlights

• FFO per security for FY 2024 was AUD 0.239 (23.9 cps), 3.5% above the top of initial guidance, but down from 26.8 cps year-over-year.

• Distribution per security was 19.3 cps (from 21.4 cps), with a payout ratio of 80.7% within the 75–85% target range.

• NTA per security declined to AUD 3.45 (from AUD 4.00); gearing increased to 40.7% (from 37.2%).

• Net property income was AUD 249.7 million, down 5.5% year-over-year.

• Sale of two properties impacted FFO but reduced interest expense.

Outlook and guidance

• FY 2025 FFO guidance is AUD 0.223–0.231 per security (22.3–23.1 cps); distribution guidance is AUD 0.182 per security, maintaining a payout ratio of 75%-85%.

• Guidance assumes an average FY 2025 floating interest rate of 4.35% and no one-off items; higher interest expenses are expected to be the main driver of lower FFO.

• Occupancy is expected to improve slightly, with lease-up activity skewed to the second half of FY 2025.

• Narrowing bid/ask spreads and disciplined capital management expected to support FY 2025 performance.