This article is from the Australian Property Journal archive
GROWTHPOINT Properties Australia continued to witness capitalisation rates expanding across its industrial and office investments, resulting in a $187.3 million decline in the value of its portfolio.
Growthpoint had 45 of its 57 directly owned properties independently assessed, including 27 offices and 18 of its 30 industrial assets.
The decrease of $187.3 million to $4.0 billion reflects a decline of 4.5% on a like-for-like basis relative to 31 December 2023 book values. The cap of the externally valued properties increased by 42 bps to 6.36%.
The office portfolio declined by $182.4 million or 6.2% from 31 December 2023 due to an expansion in the cap rate of 49 bps to 6.47%.
The industrial portfolio and cap rate expanded by 25 bps to 6.11%, but it was partially offset by continued rental growth, which resulted in a marginal dip of $4.9 million or 0.4% from 31 December 2023 book value.
The decrease is expected to result in a reduction of approximately 25 cps to the group’s net tangible assets (NTA).
Growthpoint’s pro forma gearing as at 30 June 2024 is expected to be around the midpoint of the Group’s target range of 35% to 45%.
The group declared a final distribution of 9.65 cents per security (cps) for the six months ending 30 June 2024, bringing the total FY24 distribution to 19.3 cps, in line with guidance.
