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1H24 distribution and preliminary draft external valuations

Growthpoint Properties Australia (Growthpoint or the Group) announces: 

  • Distribution of 9.65 cents per security (cps) for the six months ending 31 December 2023 (1H24), in line with FY24 distribution guidance of 19.3 cps 
  • Maintains FY24 funds from operations (FFO) guidance of between 22.5 to 23.1 cps 
  • Preliminary 31 December 2023 draft external valuations for circa 62% of the Group’s portfolio by value, indicate a decrease of approximately $137.8 million,1 or 4.7% on a like-for-like basis relative to 30 June 2023 book values 
  • An increase in the weighted average capitalisation rate of the externally valued properties of approximately 36 basis points to 5.8% 

Timothy Collyer, Managing Director of Growthpoint, said, “The Group’s movement in preliminary draft external valuations reflects the increased cost of capital and higher return expectations from investors. In the industrial market, supply constraints continue to drive strong rental growth, which has largely offset yield expansion. Office markets are experiencing higher-than-average vacancies, although physical occupancy continues to increase across all markets and is anticipated to improve in 2024 as more businesses implement return-to-office policies. Despite the lower preliminary draft external valuation of the Group’s properties, Growthpoint’s high-quality portfolio with secure tenants on long leases continues to perform well in terms of occupancy (94%)2 and WALE (5.8 years)2, underpinning income to Securityholders.” 

Read the full ASX announcement here

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