Growthpoint Properties provided an update to the market on the impact of the COVID-19 virus on its business.
The business holds approximately $4.2bn in assets across Sydney, Melbourne and Brisbane, of which $2.9m is in Office buildings and $1.3bn in Industrial facilities. Whilst the Group had a strong start to the financial year and was on track to achieve its FY20 funds from operations (FFO) per security and distribution per security (DPS) guidance, the disruptions from COVID-19 to the last quarter and into the net financial year will be challenging.
Growthpoint had previously expected FFO per security of at least 25.4 cents and distribution per security (DPS) of 23.8 cents, representing growth of 3.5% over FY19, however the Group has now withdrawn all forward-looking statements, including its FY20 FFO per security and DPS guidance.
Timothy Collyer, Managing Director of Growthpoint, said, “Our priority during these uncertain times is protecting the safety and wellbeing of our employees, our tenants and the communities in which we operate. The foundations of our business are strong and we are well positioned to face the challenges presented during this unprecedented period."
Growthpoint advised that it has a robust balance sheet, with undrawn debt lines of $243 million and no debt maturing until FY22. The groups gearing as at December 2019 was 31.4%.
Related Articles
