Growthpoint update on FY23 valuations and guidance

FY23 FFO forecast to exceed guidance of 25.5cps - 26.5cps¹, confirms FY23 distribution guidance of 21.4cps and preliminary draft external valuations.

Growthpoint Properties Australia (Growthpoint or the Group) is pleased to announce: 

• Forecast FY23 funds from operations (FFO) guidance upgraded to 26.7¹ cents per security (cps) - exceeding prior FY23 FFO guidance of 25.5cps to 26.5cps.
• Distribution of 10.7cps for the six months ending 30 June 2023, bringing the total FY23 distribution to 21.4cps, inline with guidance and a payout ratio of 80.1%.
• Preliminary draft external valuations² (69% of portfolio value) indicate a like-for-like decrease of $123.8 million from 31 December 2022 to 30 June 2023, a decline of 3.6% and a like-for-like decrease of $249.8 million from 30 June 2022 to 30 June 2023, a decline of 7.3%.

Timothy Collyer, Managing Director of Growthpoint, said, “We are very pleased to upgrade our FY23 FFO guidance and meet distribution guidance. The Group’s movement in preliminary draft external valuations reflects the increased cost of capital across all markets. In the industrial portfolio, there continues to be strong market rental growth which is largely offset by yield expansion. According to JLL, the national CBD office vacancy rate remained at around 14%, with Q1 2023 seeing positive net absorption and a small increase in prime effective gross rents.”

Read the full ASX announcement here

1. Subject to completion of Growthpoint’s FY23 audited financial statements
2. Gross movement, excluding capital expenditure incurred and net movement on incentives