Full Year 2024 Growthpoint Properties Australia Ltd Earnings Call Transcript
Key Points
- Growthpoint Properties Australia (ASX:GOZ) delivered FFO above upgraded guidance, with a final $0.239 per security, 3.5% above the top of the initial guidance range.
- The company maintained 100% occupancy in its industrial portfolio and increased office portfolio occupancy to 92%.
- Growthpoint is on target to achieve net-zero across its directly owned office assets and corporate activities, including maintaining high NABERS ratings.
- The company extended $470 million of debt facilities, reducing refinance risk and maintaining a strong capital position.
- Growthpoint's funds management business managed $1.6 billion in assets and achieved an 11% IRR on the sale of Taylors House.
- FY24 property FFO decreased by 2.3% like-for-like, excluding the impact of surrender payments, due to the sale of two properties and higher finance costs.
- The weighted average cost of debt increased over the year, impacting overall financial performance.
- The office portfolio's average incentives on new leases were 23%, indicating higher costs to attract tenants.
- Growthpoint faces challenges in leasing the remaining 10,000 square meters at 5 Murray Rose Avenue in Sydney Olympic Park.
- The company provided lower FFO guidance for FY25, between $0.223 and $0.231 per security, due to anticipated higher interest expenses.
Good afternoon, and welcome to the 2024 full year financial results for Growthpoint Properties Australia. My name is Ross Lees, CEO and Managing Director of the Group.
Before we start the formalities, we would like to acknowledge the traditional custodians of country throughout Australia and recognize their continuing connection to land, water, and community. We pay our respects to elders past and present, and extend that respect to First Nations people.
Presenting alongside me this afternoon are Michael Green, Chief Investment Officer, and Dion Andrews, Chief Financial Officer. Also present in the room for Q&A, Jacquee Jovanovski, our Chief Operating Officer; Sam Sproats, our Head of Funds Management; and Luke Maffei, our Investor Relations Manager.
I'll start this afternoon with a brief introduction and summary. Dion will give a more detailed review of our financials. Michael will then provide an update on our property portfolio, and I will conclude with an overview of the funds
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