Growthpoint upgrades funds from operations guidance
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The news: Commercial property investor Growthpoint Properties Australia has upgraded its full-year guidance for funds from operations on the back of improved office leasing results.
The numbers: The REIT now expects funds from operations to be 23.2 cents to 23.6 cents per security, up from its previous estimate of 22.5 to 23.1 cents a security. It reaffirmed distribution guidance at 19.3 cents a security.
Shares in the company were up 1.7% to $2.39 each in early trading on the ASX after the announcement.
The context: Growthpoint attributed the upgrade to better than expected office leasing during the year, lease surrender fees and good income.
Outgoing MD Timothy Collyer said the group is proactively addressing lease expiry and vacancies across the portfolio and added that the group’s industrial portfolio is expected to benefit from rent reversion, with around 40% of leases set to expire between FY24 and FY26.
The ASX-listed REIT last month appointed Centuria's head of funds management Ross Lees as its new CEO and managing director to replace Collyer, from 1 July.
The source: ASX announcement
