Highlights

  • Growthpoint reported FY26 statutory net profit of AUD 90.1 million, reversing a AUD 124.6 million loss in FY25.
  • Funds from operations rose slightly to AUD 177.6 million, or 23.5 cents per security.
  • Portfolio occupancy remained high at 96%, with a weighted average Lease expiry of 6.1 years.
  • FY27 guidance is for FFO of 22.6-23.5 cents per security and a distribution of 18.4 cents per security.

Growthpoint Properties Australia (ASX:GOZ) returned to statutory profit in FY26, but the more important signal came from its recurring property earnings. Funds from operations edged higher, occupancy remained at 96% and leasing activity stayed firm despite elevated interest rates. With FY27 distribution guidance held steady, the group enters the new year with a relatively stable income base while continuing to manage gearing and asset values.

FFO Holds Firm as Statutory Profit Rebounds

Growthpoint reported statutory net profit of AUD 90.1 million for FY26, compared with a AUD 124.6 million loss a year earlier. Funds from operations were AUD 177.6 million, up 0.9%, or 23.5 cents per security.

The difference matters because A-REIT statutory Earnings are heavily influenced by property revaluations and derivative movements. FFO strips out many non-cash items and provides a clearer view of recurring rental and funds-management earnings.

High Occupancy Supports the Income Base

Growthpoint manages AUD 5.2 billion across 64 assets, including a AUD 4.0 billion direct portfolio and AUD 1.2 billion of third-party funds. The portfolio is split between office and industrial Assets and carries a weighted average lease expiry of 6.1 years.

Occupancy stood at 96% overall, including 95% across office and 98% across industrial assets. The group completed significant leasing during the year, including a major 11-year lease with Myer Group at 75 Dorcas Street in South Melbourne.

Asset Sales Support Balance-Sheet Management

Growthpoint refinanced AUD 495 million of Debt and agreed to sell the Woolworths distribution centre at Perth Airport for AUD 267.7 million. Settlement is expected in early 2027 and is expected to reduce pro forma gearing by roughly four percentage points.

Gearing ended FY26 at 41.6%, up from 39.7%, while the weighted average cost of debt was 5.1%.

Distribution Guidance Remains Stable

Growthpoint declared an FY26 distribution of 18.4 cents per security, representing 78.2% of FFO. FY27 guidance is for FFO of 22.6-23.5 cents per security and another 18.4-cent distribution.

The unchanged payout provides income visibility, though the guidance range also allows for some earnings pressure in the new financial year.

What to Watch

The Perth Airport asset sale, gearing, refinancing costs, office leasing and changes in property valuations will be important. Interest-rate movements remain a major external influence on both asset values and funding costs.

Risks

Growthpoint remains exposed to office-market uncertainty, higher interest costs, valuation declines and gearing. Expiring debt hedges may also lift funding costs if interest rates remain elevated.