Growthpoint Properties Australia (GOZ) H2 2025 earnings summary

Executive summary

• Achieved FY25 funds from operations (FFO) of 23.3 cps ($176.0 million), exceeding or meeting guidance, with strong leasing activity and 94% occupancy, and a 5.6-year weighted average lease expiry.

• Raised $170 million in equity for unlisted funds, launched two new funds, and added $328 million in new assets under management.

• Achieved Net Zero Target for scope 1, 2, and some scope 3 emissions as of 1 July 2025, and increased sustainability-linked loans to $1.3 billion, now 67.7% of the loan book.

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

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

Financial highlights

• FFO per security was 23.3 cps, down 2.5% year-over-year; like-for-like property FFO up 3.2% (office +2.0%, industrial +6.0%).

• Statutory net loss after tax improved to $124.6 million from $298.2 million in FY24, mainly due to property devaluations.

• Ordinary distribution of 18.2 cps, with a one-off 2.1 cps, totaling 20.3 cps; payout ratio 78% (excluding one-off).

• 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

• FY26 FFO guidance set at 22.8–23.6 cps; distribution guidance at 18.4 cps (target payout ratio 75–85% of FFO), a 1% increase on FY25.

• Guidance assumes no direct property acquisitions/disposals, similar fund creation and occupancy levels as FY25, and continued headwinds from interest costs.

• Focus areas for FY26 include leasing, targeted capital expenditure, funds management growth, and capital optimisation.

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