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Growthpoint Properties Quarterly Update


Growthpoint reaffirmed their guidance for FY19 following continued progress in the 1st Quarter of 2019.

Growthpoint expect FF0 per security of 'at least’ 24.6 cents and a distribution per security of 23.0 cents (unchanged).

The key highlights in the 1st Quarter are;

Successful USPP provides strong endorsement

On 28 February 2019, Growthpoint announced that it had successfully secured 10-year debt finance to the equivalent of approximately AUD161 million via the US Private Placement (“USPP”) market. The USPP issue was more than four times oversubscribed from its original size (USD100 million) and achieved favourable pricing which enabled Growthpoint to increase its offer size to USD115 million. The USPP is expected to settle in May 2019. Growthpoint’s weighted average debt maturity will increase to 4.8 years from 3.9 years prior to the transaction.

Acquisitions

There were no additions to the Growthpoint portfolio during the 1st quarter.

Divestments

On 12 April, Growthpoint announced the sale of two properties, being 89 Cambridge Park Drive, Cambridge, Tasmania for $25.0 million and 7 Laffer Drive, Bedford Park, South Australia for $20.2 million. Settlement of the sales has completed with proceeds earmarked for investment into development opportunities currently progressing at Building 3, Botanicca Corporate Park, Richmond, Victoria and the expansion of the Woolworths Distribution Centre at Gepps Cross, South Australia​

Performance

Over the past 12 months, Growthpoint have outperformed the AREIT index, being up 19.3% vs 8.11% for the ASX200 ARETs.

GOZ Trading Chart vs ASX200 AREIT Blue - GOZ, Purple ASX200 AREIT

Last 12 months

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