Growthpoint See Strong Valuations Gains

7 June 2021

Growthpoint Properties Australia has announced that its preliminary draft external valuations point to an average 7.7% increase on like-for-like assets with higher results in its industrial portfolios.

A total of 45 of its 55 properties have been externally valued at 30 June 2021 indicating a $251 million, or 7.7%, increase on a like-for like basis in asset values to the 31 December 2020 book
values. This uplift is expected to add approximately $0.33 per security to the Group’s net tangible assets, which was $3.82 per security at 31 December 2020.

Timothy Collyer, Managing Director of Growthpoint, said, “The preliminary results of Growthpoint’s external valuations indicate the largest six-month increase on a like-for-like basis in the Group’s history. The significant uplift reflects the substantial re-rating that has occurred across the industrial sector, driven by continued strong domestic and offshore investors’ demand for industrial assets, as well as leasing success across both our office and industrial portfolios. We remain focused on actively managing our assets to ensure we maximise the portfolio’s value for our Securityholders.”

The Group’s industrial portfolio has increased by $146 million to $1.5 billion at 30 June 2021, 10.9% higher on a like-for-like basis than the prior book values. The weighted average capitalisation rate of the industrial portfolio tightened 54 basis points to approximately 5.2%.

The strong valuation result to 30 June 2021 follows a sustained period of valuation gains, with Growthpoint’s industrial portfolio increasing $50.2 million or 3.9% on a like-for-like basis over the six months to 31 December 2020.

Growthpoint’s Office portfolio revaluations indicate the asset values have increased by $105 million, or 5.4% on a like-for-like basis, over the six months to 30 June 2021.

The valuations are subject to finalisation and audit and could be revised up or down. They also assume that there is no material change in market conditions before 30 June 2021, the effective date of the valuations. The final audited valuations for individual properties will be available as part of Growthpoint’s FY21 results, which will be released to the market on Wednesday, 25 August 2021.