Growthpoint Properties Australia (ASX:GOZ) announced its financial results for the 12 months ended 30 June 2026 (FY26) on 17 August 2026. The company reported Funds From Operations (FFO) of $177.6 million, or 23.5 cents per security, and statutory net profit of $90.1 million, and said FFO was near the top of its guidance range and above FY25.

WHAT GROWTHPOINT PROPERTIES AUSTRALIA DOES

Growthpoint is an internally managed Real Estate Investment Trust (REIT) that has invested in Australian real estate since 2009. Its directly owned portfolio comprises office and industrial properties, and through its funds management Business it also manages office, industrial and retail Assets for third-party wholesale syndicates and institutional investors.

Moody's has assigned a Baa2 domestic backed senior secured bank Credit Facility rating.

FY26 FINANCIAL AND PORTFOLIO RESULTS

FFO per security was 23.5 cents compared with 23.3 cents in FY25. Statutory net profit of $90.1 million compared with a statutory net loss of $124.6 million in FY25, which the company said largely resulted from lower net devaluations in its investment properties. Distributions per security were 18.4 cents, representing a Payout Ratio of 78.2% against a target range of 75% to 85% of FFO. Net tangible assets per security were $3.05 compared with $3.09. Gearing increased to 41.6% from 39.7%, within a target range of 35% to 45%.

Occupancy across the directly held portfolio increased to 96% from 94%, and the weighted average Lease expiry (WALE) rose to 6.1 years from 5.6 years. In the office portfolio, 27 assets valued at $2.6 billion had occupancy of 95%, a WALE of 6.3 years and a weighted average Capitalisation rate of 7.14%, up from 7.03%. The company completed a record 81,022 square metres of office leasing, equivalent to 22% of office portfolio income, with average gross incentives of 31%. FY27 expiries were reduced to 11% from 18% of office portfolio income. The net value of the directly held office portfolio declined $47.4 million, or 1.9%.

In the industrial portfolio, 21 assets valued at $1.5 billion had occupancy of 98%, a WALE of 5.6 years and a capitalisation rate of 6.25%, up from 6.10%. Industrial leasing totalled 117,934 square metres, equivalent to 24% of industrial portfolio income. The net value of the industrial portfolio decreased $14.1 million, or 0.9%.

The company created $124.9 million of new AUM, measured at acquisition, through the extension of the Growthpoint Australia Logistics Partnership and the establishment of the Growthpoint Macquarie Park Trust, and delivered $331.0 million of divestments for fund investors at the end of their terms.

CAPITAL MANAGEMENT, DIVESTMENTS AND FY27 GUIDANCE

Growthpoint refinanced $495.0 million of Debt and said available Liquidity covers all FY27 debt maturities, with no debt refinancing requirements until FY28. It sold 3, 5 and 7a Viola Place at Brisbane Airport for $16.7 million, and exchanged a conditional contract in August 2026 on the $267.7 million divestment of the Woolworths Distribution Centre at 20 Colquhoun Road, Perth Airport. The price is on completion of current expansion works, with estimated cost to complete of $6.4 million, and settlement is expected in early calendar year 2027. Net proceeds are to be used initially to repay debt, lowering gearing by approximately 4%.

FY27 FFO guidance is 22.6 to 23.5 cents per security and distribution guidance is 18.4 cents per security. The guidance assumes no additional acquisitions or disposals of direct investment properties and no significant market movements or unforeseen circumstances. The company said it is reviewing its capital management plan, including consideration of a distribution reinvestment plan for FY27 distributions and a review of the target distribution payout ratio for future years.

RISKS AND WHAT TO WATCH

Chief Executive Officer and Managing Director Ross Lees referred to ongoing macroeconomic uncertainty and a market experiencing ongoing elevated office vacancy and increasing industrial vacancy. FY27 FFO guidance of 22.6 to 23.5 cents compares with 23.5 cents in FY26 and reflects the impact of the elevated Interest Rate environment on earnings.

Gearing rose to 41.6%, and the company noted that net proceeds from the Perth Airport sale are to be used to repay debt. Capitalisation rates increased in both the office and industrial portfolios, and portfolio values declined on a net basis. Mr Lees said the company continues to assess the implications of artificial intelligence for workplace demand, with tenant feedback so far suggesting only a limited impact.

NEXT MILESTONES

Milestones include settlement of the 20 Colquhoun Road divestment in early calendar year 2027, the review of the capital management plan and potential distribution reinvestment plan, the review of the target payout ratio, delivery of FY27 guidance, and Growthpoint's first mandatory climate report in FY27. A market briefing was held at 11am AEST on 17 August 2026.