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1Q24 highlights:

  • Completed 13,139 sqm of office leasing, representing 2.6% of portfolio income
  • Stable WALE of 6.0 years1 (30 June 2023: 6.0 years), with occupancy of the directly owned portfolio increasing to 95%2 (30 June 2023: 93%)
  • Completed the sale of 1-3 Pope Court, Beverley, SA for $35.0 million, circa 15% above the 30 June 2023 valuation
  • Moody’s Credit Opinion reaffirmed Growthpoint’s long-term credit rating of Baa2, ‘stable outlook’
  • Solid capital position with 70%1 of debt hedged and no facility maturities until the middle of FY25
  • 2023 GRESB score of 84/100, 3 points higher than 2022, and maintained overall regional sector leader position for Diversified – Office/Industrial 
  • Maintains FY24 FFO guidance of between 22.5 to 23.1 cents per security (cps) and FY24 distribution guidance of 19.3 cps

Timothy Collyer, Managing Director of Growthpoint, said, “We continue to achieve good leasing outcomes across the Group’s directly owned portfolio, particularly in office, where our occupancy increased during the quarter. Of the 13,139 sqm of office leases signed during the first quarter, by area, 67% were with Government tenants. Our Queensland assets continue to perform strongly with the bulk of the Group’s office leasing activity for the quarter taking place in that state.

“Tenant demand for A-Grade, metropolitan office space with good amenities in our markets remains encouraging. The Group successfully leased 4,427 sqm at 15 Green Square Close, Fortitude Valley, QLD for a period of 5 years, which commenced on 1 October 2023. Occupancy in this building has increased from 56% as at 30 June 2023 to 81% presently.

“Industrial markets remain strong due to a shortage of modern, efficient warehouse space available to lease. Average rents continue to trend higher and speculative supply in planning is slowing, impacted by elevated construction costs.

“Growthpoint is committed to operating in a sustainable way and we are pleased that GRESB has recognised the Group for the third year running, as a regional sector leader in the 2023 Sustainability Benchmark. Our score of 84 out of 100 is our best result to date, up 3 points on last year. This was mainly driven by the launch of our sustainability framework (including establishing the NABERS Indoor Environment target), undertaking technical assessments and increasing coverage of building certifications across the portfolio.”  

For more information read the full ASX announcement

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