Key Highlights

  • Growthpoint Properties Australia delivered FY26 funds from operations of $177.6 million, equivalent to 23.5 cents per security, compared with 23.3 cents in FY25.
  • Direct portfolio occupancy increased to 96%, supported by record office leasing of 81,022 square metres and industrial leasing of 117,934 square metres.
  • FY26 distributions were 18.4 cents per security, while gearing increased to 41.6% and remained within the trust's 35%–45% target range.
  • Growthpoint has provided FY27 FFO guidance of 22.6–23.5 cents per security and distribution guidance of 18.4 cents per security.

Growthpoint Properties Australia (ASX:GOZ) reported funds from operations of $177.6 million for FY26, equivalent to 23.5 cents per security, compared with 23.3 cents per security in the previous financial year. The result was delivered amid elevated interest rates and increased macroeconomic Volatility during the second half.

Statutory net profit was $90.1 million, compared with a statutory net loss of $124.6 million in FY25. The year-on-year movement was largely associated with lower net devaluations across Growthpoint's Investment properties during FY26.

The trust distributed 18.4 cents per security for the year, representing a Payout Ratio of 78.2% of FFO and remaining within its target range of 75% to 85%. Net tangible Assets stood at $3.05 per security at 30 June 2026, compared with $3.09 a year earlier.

Record Office Leasing Reduces Near-Term Risk

Leasing activity was a central feature of Growthpoint's FY26 operational performance. Across its directly held portfolio, occupancy increased to 96% from 94%, while weighted average Lease expiry (WALE) extended to 6.1 years from 5.6 years.

The office portfolio recorded 81,022 square metres of leasing during the year, equivalent to 22% of office portfolio income. The average lease term was 7.5 years, while average gross incentives were 31%. Office occupancy consequently increased to 95% from 92%, and WALE extended to 6.3 years from 5.5 years.

The leasing activity also reduced the proportion of office portfolio income due to expire in FY27 from 18% to 11%. Growthpoint attributed the outcome to active asset management, targeted investment and efforts to limit vacancy periods.

Industrial Portfolio Maintains High Occupancy

Growthpoint's directly held industrial portfolio completed 117,934 square metres of leasing during FY26, representing 24% of industrial portfolio income. Average lease terms were 4.7 years, while average net incentives were 17%.

Industrial occupancy remained at 98%, with WALE of 5.6 years. The company reported that vacancies and forward expiries represented less than 4% of income annually over the following three years.

The directly held industrial portfolio was valued at approximately $1.5 billion at 30 June 2026. Its weighted average Capitalisation rate increased to 6.25% from 6.10%, while adopted market rents increased by an average of 3.4%. On a net basis, the portfolio value declined by $14.1 million, or 0.9%, during FY26.

Capital Management and Funds Management

Growthpoint's gearing increased to 41.6% from 39.7%, remaining inside its stated 35% to 45% target range. The Balance Sheet supported the creation of additional assets under management, while $495 million of Debt was refinanced during FY26. Available Liquidity was sufficient to cover FY27 debt maturities.

The funds management Business created $124.9 million of new assets under management through the expansion of the Growthpoint Australia Logistics Partnership and establishment of the Growthpoint Macquarie Park Trust. Gross Equity of $33.9 million was also raised in the unlisted funds business.

Growthpoint completed $331 million of fund divestments during the year, providing liquidity for investors as funds reached the end of their investment terms. Separately, the trust completed $16.7 million of capital recycling and subsequently exchanged a conditional contract for the $267.7 million divestment of a Perth Airport property.

FY27 Outlook

Growthpoint expects FY27 FFO to be between 22.6 and 23.5 cents per security, with distribution guidance maintained at 18.4 cents per security. The guidance incorporates the impact of the elevated interest-rate environment and assumes no additional acquisitions or disposals of direct investment properties.

The company intends to continue focusing on portfolio performance, funds management growth and capital recycling. Its industrial assets provide a significant portion of the directly held portfolio's income base, while office leasing remains focused on maintaining occupancy and extending lease duration.

Conclusion

Growthpoint's FY26 result combined steady FFO with a substantial improvement in leasing metrics across its directly held portfolio. Office occupancy increased to 95%, industrial occupancy remained at 98%, and the overall WALE extended to 6.1 years. At the same time, gearing remained within the target range despite higher interest costs and capital activity. For FY27, the company expects FFO of 22.6–23.5 cents per security and distributions of 18.4 cents per security, with portfolio management, capital recycling and expansion of the funds management platform remaining central to its operating strategy.