Growthpoint Properties Australia upgrades FY22 guidance, confirms distribution for 2H22 and provides preliminary draft portfolio valuations Growthpoint Properties Australia (Growthpoint or the Group) announces its distribution for the six months ending 30 June 2022, upgrades its FY22 funds from operations (FFO) guidance and provides preliminary draft external valuations of its property portfolio.
Key highlights
- FY22 FFO guidance upgraded to at least 27.7 cps
- Distribution of 10.4 cps for the six months ending 30 June 2022
- Preliminary draft external valuations indicate a $64.51 million increase which is expected to contribute an approximate 8 cents per security (cps) increase to the Group’s net tangible assets (NTA), to $4.63 per security pro forma, from $4.55 at 31 December 2021
Timothy Collyer, Managing Director of Growthpoint, said, “We are pleased to upgrade our FY22 FFO guidance today to at least 27.7 cps and announce our distribution of 10.4 cps for the six months to 30 June 2022, which reflects the continued strong performance of the Group over the year. The preliminary results of Growthpoint’s external valuations demonstrate the resilience of the Group’s growing property portfolio, with the uplift reflecting the ongoing strength of the industrial market and leasing success across both our office and industrial portfolios.
Ongoing market uncertainties caused by high inflation and the Reserve Bank of Australia’s increase to the official cash rate will mean a significant rise in interest rate expense for the A-REIT sector going into the next financial year. Growthpoint will be subject to a higher interest expense on its floating debt, with circa 60% of its debt forecast to be fixed as at 30 June 2022. However, the Group has ample head room to debt covenants and no hedges expiring in FY23. The Group’s exposure to favoured industrial and metropolitan office property markets and secure income from predominantly large corporate and government tenants provide a resilient foundation for our business. Our goal remains to provide our securityholders with sustainable income returns and capital appreciation over the long term.”
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