Growthpoint Properties Australia (ASX:GOZ) has released its FY26 annual results, demonstrating resilience in a challenging environment. The company delivered funds from operations (FFO) at the upper end of guidance, with a 0.9% increase to $177.6 million.
The stock has remained relatively stable following the results announcement, trading at $2.17, with a dividend yield of 8.48%. The company's portfolio occupancy has improved significantly, reaching 96%, driven by record leasing activity.
Financial Performance
Growthpoint reported a 1.8% growth in property FFO to $289.4 million, with like-for-like property FFO increasing 2.6% to $278.4 million. Net finance costs rose 2.4% to $87.1 million due to balance sheet leverage and maturing fixed-rate swaps.
Portfolio Performance
The direct portfolio, valued at $4.0 billion, achieved 96% occupancy, with a weighted average lease expiry (WALE) of 6.1 years. The office portfolio delivered exceptional results, with 81,022 square meters leased, increasing occupancy from 92% to 95%. The industrial portfolio maintained high occupancy at 98%, with 117,934 square meters of leasing completed.
Capital Management
Growthpoint executed a balanced capital management approach, extending debt maturities and supporting strategic execution. The company refinanced $495 million of debt and established $275 million in new sustainability-linked loans. Gearing ended the year at 41.6%, within the target range of 35-45%.
Outlook
With available liquidity to cover all FY27 maturities and a Moody's credit rating of Baa2/Stable, the company maintains financial flexibility to execute its strategy. The funds management business generated $125 million in new assets under management (AUM) during FY26, demonstrating resilience against geopolitical and interest rate volatility.