Growthpoint Properties Australia (GOZ) H2 2024 earnings summary

Executive summary

• Assets under management reached AUD 6 billion across 66 assets, with a direct portfolio valued at AUD 4.4 billion and third-party funds of AUD 1.6 billion as of 30 June 2024.

• FY 2024 FFO was AUD 180.4 million or 23.9 cps, exceeding upgraded guidance; distributions of 19.3 cps met guidance.

• Statutory net loss after tax was AUD 298.2 million, primarily due to property revaluations and higher finance costs.

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

• Sustainability initiatives advanced, with AUD 1.02 billion in sustainability-linked loans and Net Zero Target on track for July 2025.

Financial highlights

• FFO per security was 23.9 cps, 3.5% above the top of initial guidance; distribution per security was 19.3 cps.

• 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.

• Distribution payout ratio at 80.7%, within the 75–85% target range.

• Weighted average cost of debt rose to 4.8%, with 74.5% of debt fixed or hedged.

Outlook and guidance

• FY 2025 FFO guidance is 22.3–23.1 cps; distribution guidance is 18.2 cps, maintaining a payout ratio of 75%-85%.

• Guidance assumes an average FY25 floating interest rate of 4.35% and no one-off items.

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

• Focus remains on optimising performance, capital allocation, and growing funds under management.

• Guidance subject to interest rate assumptions and market volatility.