Growthpoint Properties impacted by challenging market

17 August 2023

Growthpoint (ASX: GOZ) announced statutory net losses of $245.6 million, decrease from $459.2 million.

The portfolio valued at $4.8 billion, down 6.5% from FY22. The net property income for the group landed at $264.3 million, with destitutions of 21.4 cents per security.

Growthpoint’s portfolio occupancy was at 93%, with office at 90% and industrial 100% occupied.

Timothy Collyer, Managing Director of Growthpoint, said: “We are very pleased with the performance of the business particularly in what has been a challenging property market environment. During the year, the Group completed the 2.5% securities buy-back, purchased and integrated the Fortius Funds Management platform and optimised the directly owned portfolio by selling 333 Ann Street, Brisbane, QLD at book value. As at 30 June 2023, the Group’s debt was hedged at 70.5%. Higher interest rates combined with additional debt to fund the securities buy-back and the Fortius acquisition, saw the Group’s interest costs increase materially which impacted FFO. Moving forward, the Group remains focused on managing its capital position in a prudent manner, as the current period of higher interest rates is likely to persist in FY24.”

FY24 funds form operations guidance reported was 22.5-23.1 cents per unit, with distributions of 19.3 cents per unit.