Growthpoint Reports $124.6M Statutory Loss, 23.3 cps FFO, and 20% Funds Management Growth

FY25 Financial Performance and Portfolio Stability

Growthpoint Properties Australia has delivered a solid FY25 performance, reporting a statutory net loss after tax of $124.6 million, a significant improvement from the $298.2 million loss recorded in the previous year. Despite ongoing market challenges, the company maintained funds from operations (FFO) at 23.3 cents per security, closely aligning with FY24’s 23.9 cents. This stability reflects Growthpoint’s resilient portfolio and disciplined capital management.

The direct property portfolio, valued at $4.1 billion, sustained a high occupancy rate of 94%, with office and industrial sectors showing like-for-like FFO growth of 2.0% and 6.0% respectively. Leasing activity remained robust, with over 100,000 square meters leased in the industrial segment and more than 23,000 square meters in office space, underpinning the company’s steady income stream.

Strategic Capital Management and Debt Profile

Growthpoint continued its disciplined approach to capital recycling, generating $335 million in cash proceeds from asset sales executed at book value. This enabled a reduction in gearing to 39.7%, comfortably within the target range of 35-45%, and preserved $244 million in debt headroom. The company also extended its debt maturity profile, with no expiries until December 2026, supported by a weighted average cost of debt of 5.0% and a strong interest coverage ratio of 2.9 times.

Notably, Growthpoint issued $320 million in Sustainability Linked Loans (SLLs) during FY25, bringing the total to $1.3 billion and representing 67.7% of its loan book. This financing aligns with the company’s sustainability objectives and underscores its commitment to responsible capital management.

Sustainability Milestones and Environmental Leadership

On 1 July 2025, Growthpoint proudly achieved its Net Zero Target, marking the culmination of a four-year sustainability program. The company has installed 1,425 kW of solar capacity across 18 assets, reduced energy intensity by 17.6% since June 2021, and committed to 100% GreenPower for its operationally controlled office portfolio. Its efforts earned a GRESB score of 85/100, well above the peer average of 76, and the certification of 75 Dorcas Street in South Melbourne as Carbon Neutral.

These achievements not only enhance Growthpoint’s environmental credentials but also provide tangible benefits to tenants seeking sustainable workplaces, reinforcing the company’s position as a forward-thinking real estate partner.

Funds Management Growth and Strategic Outlook

Growthpoint’s funds management platform gained significant momentum in FY25, adding $328 million in new assets under management through the launch of the Growthpoint Australia Logistics Partnership (GALP) and the Growthpoint Canberra Office Trust (GCOT). The company co-invested $37 million alongside investors, ensuring alignment and shared interests. Funds management revenue increased by 20%, supported by $170 million raised in equity for unlisted funds.

Looking ahead, Growthpoint has set FY26 guidance with FFO expected between 22.8 and 23.6 cents per security and distributions targeted at 18.4 cents per security. The company plans to focus on leasing current vacancies, managing fund lifecycle opportunities, completing the Woolworths Perth Distribution Centre expansion, and continuing sustainability initiatives post-Net Zero.

Overall, Growthpoint’s FY25 results reflect a well-executed strategy balancing portfolio performance, capital discipline, sustainability leadership, and funds management growth, positioning the company for resilient future returns.