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Growthpoint Properties (GOZ) - Managing Director, Timothy Collyer
Managing Director, Timothy Collyer
Source: Growthpoint Properties
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  • A strong industrial market has pushed Growthpoint Properties Australia’s (GOZ) property portfolio valuation up 7.7 per cent
  • External valuations of 45 of its 55 properties, or 77 per cent of the portfolio by value, indicates a $251 million uptick in valuation on a like-for-like basis
  • The group re-evaluated its entire industrial portfolio, with preliminary draft external valuations indicating a $146 million increase
  • Growthpoint also revaluated 14 of its 24 office assets, or 67 per cent by value, and enjoyed a 5.4 per cent bump
  • Shares in GOZ closed up 1.28 per cent at $3.95 cents on June 7

A strong industrial market has pushed Growthpoint Properties Australia’s (GOZ) property portfolio valuation up 7.7 per cent.

The news comes on the back of a strong investor market for industrial assets and leasing success for the company in the office sector.

Preliminary draft external valuations of 45 of its 55 properties, or 77 per cent of the portfolio by value, indicate a $251 million uptick in valuation on a like-for-like basis.

This uplift is expected to add approximately $0.33 per security to the group’s net tangible assets, which was $3.82 per security at 31 December 2020.

“The preliminary results of Growthpoint’s external valuations indicate the largest six-month increase on a like-for-like basis in the group’s history,” Growthpoint managing director Timothy Collyer said.

“The significant uplift reflects the substantial re-rating that has occurred across the industrial sector, driven by continued strong domestic and offshore investors’ demand for industrial assets, as well as leasing success across both our office and industrial portfolios.

“We remain focused on actively managing our assets to ensure we maximise the portfolio’s value for our securityholders.”

The group re-evaluated its entire industrial portfolio, with preliminary draft external valuations indicating a $146 million increase.

This takes the industrial portfolio to $1.5 billion at June 30, 10.9 per cent higher on a like-for-like basis than the prior book values.

The weighted average capitalisation rate tightened to around 5.2 per cent.

Recent increases were mirrored in the six months to December 31, 2020, when its valuation rose 3.9 per cent.

Growthpoint also re-evaluated 14 of its 24 office assets, or 67 per cent by value, and enjoyed a 5.4 per cent bump on a like-for-like basis over the six months to June 30.

This rise represented a $105 million increase in value.

The valuations could be revised up or down subject to finalisation and audit of the external valuations, and assume there is no material change in the market conditions before June 30.

The final audited valuations for individual properties will be available as part of Growthpoint’s FY21 results, which will be released to the market on Wednesday, August 25, 2021.

In April, the company announced an upgraded FY 21 funds from operations guidance to 25.4 – 25.7 cents per security, previously 25.2 – 25.5.

Shares in GOZ closed up 1.28 per cent at $3.95 cents on June 7.

GOZ by the numbers
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