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Highlights

  • Growthpoint Properties is an ASX-listed REIT company, operating since 2009 2009
  • With the integration of the Fortius Funds Management, the company’s FUM increased by AUD 1.9 billion
  • Growthpoint Properties Ltd has the maximum shareholding in the company with a stake of around 63.68%

Growthpoint Properties Australia (ASX: GOZ) is a real estate investment trust (REIT) firm which invests in office and industrial properties across Australia. As of 30 June 2023, the total fund under management (FUM) of GOZ stood at AUD 1.8 billion. Further, AUD 1.9 billion was added to FUM as of September 2023 with the integration of the Fortius Funds Management.

In the financial year 2023, the company reported a 6.7% increase in net property income to AUD 264.3 million and a 1.2% increase in the distribution to shareholders to AUD 162.6 million. During the reported period, the company maintained a portfolio WALE of 6 years and a weighted average capitalization rate of 5.6%.

Recent business update

Through an ASX filing dated 25 August 2023, the company informed about the distribution of 10.7 cents per stapled security for the second half of FY23, only applicable for foreign shareholders and other entities. The dividend was paid on 1 August 2023. This distribution comprises a fund payment of 8.14 cents per stapled security.

Top 10 shareholders of GOZ

The top 10 shareholders of GOZ have around 70.74% stake in the firm, while the top four have around 67.98% shareholding. Growthpoint Properties Ltd and Vanguard Investments Australia Ltd. Have the highest stake in the firm, with a shareholding of ~63.68% and ~2.31%, respectively.

Outlook

GOZ said that it is well placed to sail through the existing period of macroeconomic volatility with its defensive portfolio, which has strong WALE and leading asset management capabilities. 

In FY24, the company anticipates its FFO (funds from operations) to exceed the current guidance of 22.5 – 23.1 cents per share. The distribution guidance is 19.3 cents per share based on the assumption that the average floating rate will be 4.35%.

Share performance of GOZ

GOZ shares closed 2.87% up at AUD 2.15 apiece on Tuesday, 17 October 2023. Including today’s gain, GOZ’s share price has plunged by 30.87% in the past 12 months and went down by 23.49% in the last three months.

The 52-week high of GOZ is AUD 3.51 apiece, recorded on 3 February 2023, and the 52-week low is AUD 2.04 apiece, recorded on 9 October 2023.

 

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

 

Note 2: The reference date for all price data, currency, is 17 October 2023. The reference data in this report has been partly sourced from REFINITIV.