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3Q23 highlights

  • Continued positive momentum in tenant demand for Growthpoint’s A-Grade directly owned metropolitan office and industrial space
  • Completed circa 39,500 square metres of leasing, representing 3.2% of portfolio income.
  • Positive net absorption in the national office market
  • Stable weighted average lease expiry (WALE) of 6.2 years (31 Dec 2022: 6.3 years), with increased occupancy of directly owned portfolio to 95% (31 Dec 2022: 94%)
  • Solid capital position with 70% of debt fixed and no facility maturities for the remainder of FY23 and FY24
  • Progressed the on-market securities buyback program, purchasing 3.8 million securities during the quarter
  • Maintain guidance of FY23 funds from operations (FFO) of 25.5 to 26.5 cents per security (cps) and FY23 distribution of 21.4 cps

Timothy Collyer, Managing Director of Growthpoint, said, “We continue to achieve positive leasing outcomes across the Group’s directly owned portfolio, particularly in office, where our occupancy increased during the quarter. Investor sentiment toward the office sub sector remains subdued, however, the Australian office market is performing well in terms of vacancy rates, rent growth and return to work metrics.”

“Tenant demand for A-Grade, metropolitan office space with good amenities in our markets remains encouraging. During the quarter we successfully leased the remaining 5,800 square metres at 100 Skyring Terrace, Newstead, QLD to the Commonwealth Government. We have also seen positive interest for key vacancies such as 5 Murray Rose Avenue, Sydney Olympic Park, NSW.”

“Net absorption remains positive, vacancy rates remain stable and most national office markets recorded quarterly face rent growth, whilst industrial prime market rents continued to grow strongly around Australia (except for northern Brisbane which declined 0.4%).”

“Despite some uncertainty in the external environment, the Group’s directly owned portfolio remains well positioned in A-Grade metropolitan office and industrial property markets, with defensive rental income streams underpinned by high-quality tenants and strong WALE’s. The Group’s capital management position remains strong with no debt maturities for the remainder of FY23 and in FY24.”

Read full 3Q23 investor update

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