Growthpoint Properties Australia (ASX:GOZ) is an Australian REIT that owns and manages office and industrial properties, both directly and through third-party funds. Its portfolio is spread across major Australian cities, and it has been building a funds management business. Ross Lees is Chief Executive Officer and Managing Director.

On 2 October 2026, Growthpoint securities were trading at $1.91, down 1.29%. With this, in a year, GOZ’s share price dropped nearly 27% in a year. The real estate sector was weaker on Friday, with the S&P/ASX 200 Real Estate index (ASX:XRE) down 1.65% at 3,178.8 as of 11:47 am, while the S&P/ASX 200 (ASX:XJO) rose 67.70 points, or 0.79%, to 8,682.10. Expectations of further Interest Rate increases in Australia, the US and other markets have weighed on REITs. Higher rates can lift financing costs, put pressure on property values and make cash and bonds more competitive. Elevated bond yields can add to funding costs and draw Capital away from listed property.

Growthpoint reports FFO and distributions per security as key measures and targets a Payout Ratio of 75% to 85% of FFO.

Recent Developments

On 17 August 2026, Growthpoint announced its results for the 12 months ended 30 June 2026. Key figures include:

  • Funds from operations (FFO) were $177.6 million, or 23.5 cents per security, compared with 23.3 cents, near the top of guidance.
  • Statutory net profit was $90.1 million, compared with a net loss of $124.6 million in FY25, largely due to lower net devaluations.
  • Distributions were 18.4 cents per security, a payout ratio of 78.2%, within the 75% to 85% target range.
  • Net tangible Assets per security were $3.05, compared with $3.09.
  • Gearing increased to 41.6% from 39.7%, within the 35% to 45% target range.
  • Occupancy increased to 96% from 94%, and WALE rose to 6.1 years from 5.6 years.

Mr Lees said FFO was achieved near the top of guidance and above FY25, despite elevated interest rates and macroeconomic Volatility escalating in the second half. He said active management delivered substantial leasing volumes across the directly held portfolio, minimising downtime and lifting occupancy, with 75% of FY26 leases to existing tenants. The company achieved record office leasing combined with significant industrial leasing, which substantially reduced near-term Lease expiries.

Mr Lees said Growthpoint supported income-driven returns while creating new assets under management and delivering Liquidity for fund investors at the end of their Investment terms. The increase in gearing reflected Balance Sheet capacity used to establish new AUM. For FY27, Growthpoint has provided FFO guidance of 22.6 to 23.5 cents per security and distribution guidance of 18.4 cents per security.

Growthpoint said it significantly reduced near-term lease expiries through its leasing activity, supporting income-driven returns from its portfolio. It also created new assets under management and provided liquidity for fund investors at the end of their investment terms. The company noted that its directly held office portfolio metrics include the renewal of 11,973 square metres at 836 Wellington Street, West Perth. The statutory profit improvement was largely due to lower net devaluations of investment properties compared with FY25.

Sector Context

Office markets in Australia have faced elevated vacancy in some cities and pressure on valuations, though leasing activity for well-located, high-quality buildings has been more resilient. Industrial property has continued to benefit from logistics demand.

REITs with office exposure are particularly sensitive to interest rates, as higher yields and uncertain tenant Demand can widen Capitalisation rates. Leasing to existing tenants can reduce vacancy and downtime. Funds management can provide an additional income source but often requires balance sheet support.

Office tenants have increasingly sought buildings with high environmental credentials, amenities and flexible floor plates, and landlords that can provide these features may achieve better leasing outcomes. Supporting existing tenants with expansions and renewals can reduce leasing costs and vacancy periods. Industrial assets provide some Diversification for REITs with office exposure.

Perth's office market, where Growthpoint holds assets such as 836 Wellington Street, has been supported by resources sector activity and government tenants. Other markets, such as Melbourne, have seen higher vacancy in some segments.

Risks and Uncertainties

Growthpoint's gearing is in the upper half of its target range, which increases exposure to interest rate movements and valuation changes. NTA per security declined slightly. Office leasing can involve incentives and capital expenditure. FY27 FFO guidance is slightly below FY26 at the midpoint. Rising bond yields could further pressure valuations.

Funds management growth requires balance sheet support, which has contributed to higher gearing and may limit capacity for other uses of capital.

Catalysts Investors Can Watch

Investors may watch for leasing outcomes, any asset sales to reduce gearing, growth in third-party AUM and delivery against FY27 guidance. Interest rate decisions will also be relevant.

Commentary on office leasing demand in key markets and the outlook for valuations will be relevant to NTA trends.

Updates on industrial leasing and the performance of its third-party funds may also indicate how the Business is diversifying its income.

In Summary

Growthpoint's FY26 result showed stable FFO, higher occupancy and a longer WALE, alongside increased gearing. Office market conditions and interest rates remain the key factors.

Its ability to manage gearing while growing funds management will be watched.