Growthpoint Properties Australia (GOZ) H2 2025 earnings summary

Executive summary

• Achieved funds from operations (FFO) of AUD 23.3 per security, exceeding or meeting guidance, with strong leasing activity and a 94% occupancy rate underpinning a 5.6-year weighted average lease expiry.

• Assets under management reached AUD 5.4 billion across 66 properties, with AUD 4.1 billion directly held and AUD 1.4 billion managed for investors; $170m equity raised in unlisted funds and $328m new AUM added.

• Achieved net zero target on 1 July 2025 and increased sustainability-linked loans to AUD 1.3 billion, now 68% of the loan book; GRESB score improved to 85, ranking second in peer group.

• Funds management revenue grew 20% year-over-year, driven by new fund launches and increased co-investment.

• Generated AUD 335 million from asset recycling, reducing gearing to 39.7%.

Financial highlights

• Like-for-like property FFO grew 2% for office and 6% for industrial; overall property FFO increased 3.2% like-for-like, excluding lease surrender payments and divestments.

• Statutory net loss after tax improved to $124.6m from $298.2m in FY24.

• Distributions totaled AUD 20.3 per security, including a one-off AUD 2.1 distribution; payout ratio (excluding one-off) was 78%.

• NTA per security declined to $3.09 from $3.45 at June 2024.

• Gearing reduced to 39.7% from 40.2% through capital recycling.

Outlook and guidance

• FFO guidance for FY2026 is AUD 0.228–0.236 per security; distribution guidance is AUD 0.184 per security, a 1% increase on FY2025, with a target payout ratio of 75–85%.

• Guidance assumes similar fund creation and occupancy levels as FY2025, with continued headwinds from interest costs as some lower-cost swaps roll off.

• No direct property acquisitions or disposals assumed in FY26 guidance.

• Focus areas for FY2026 include leasing, targeted capital expenditure, and growth through funds management.

• Metro office markets expected to return to growth, with stabilising cap rates and valuations.