Growthpoint Properties Australia delivered funds from operations of $177.6 million in FY26, achieving 23.5 cents per security and landing near the top of its guidance range despite a challenging macro environment and elevated interest rates. The result represents growth on FY25’s 23.3 cents per security, validating management’s strategy of active portfolio management and tenant-centric operations through a volatile period.
The standout operational achievement was record office leasing across the directly held portfolio, with 81,022 square metres placed during the year. Combined with significant industrial leasing of 117,934 square metres, this activity drove occupancy to 96% and extended the weighted average lease expiry to 6.1 years. These metrics matter because they directly support income stability and reduce refinancing risk. The 75% renewal rate among existing tenants reflects strong tenant relationships and a low-friction leasing environment that minimises future vacancy.
On the balance sheet, Growthpoint increased gearing to 41.6% from 39.7%, staying comfortably within its 35-45% target range. The company refinanced $495 million of debt and has sufficient liquidity to cover all FY27 maturities. A conditional contract on a $267.7 million divestment of its Perth Airport property is set to lower gearing by approximately 4% once settled in early 2027, reinforcing disciplined capital recycling.
Growthpoint created $124.9 million in new assets under management through extending the Growthpoint Australia Logistics Partnership and establishing the Growthpoint Macquarie Park Trust, broadening its third-party funds management platform. This diversification is strategically important as it improves earnings resilience and creates fee-generating revenue streams beyond the core directly held property portfolio. The company also delivered $331 million in divestments, providing liquidity to fund investors exiting their investment terms.
Distributions were set at 18.4 cents per security, maintaining a 78.2% payout ratio within the 75-85% target. Net tangible assets per security declined to $3.05 from $3.09 in a challenging property valuation environment, though statutory net profit swung sharply to a $90.1 million gain from a $124.6 million loss in FY25, mostly due to lower devaluations.
For FY27, Growthpoint has guided FFO between 22.6 and 23.5 cents per security with distributions held at 18.4 cents. The lower guidance midpoint suggests modest headwinds to FFO, likely reflecting macroeconomic caution and the dilutive impact of capital recycling proceeds awaiting redeployment. Investors should monitor execution of the Perth Airport divestment, progress on portfolio rebalancing, and whether the company can maintain leasing momentum and occupancy levels through a softer economic period. This announcement is price sensitive and has been flagged as material by the ASX.
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About Growthpoint Properties Australia Limited (ASX: GOZ)
Growthpoint Properties Australia Limited is an Australian real estate investment trust that owns and operates a diversified portfolio of office and industrial properties across Australia. The company also provides funds management services for third-party investors, managing office, industrial, and retail assets. Listed on the Australian Securities Exchange and a constituent of the S&P/ASX 200 index, it focuses on high-quality modern properties in the Australian market.
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