GOZ - Growthpoint Properties Australia

Growthpoint Properties Australia (GOZ), formerly known as Orchard Industrial Property Fund (OIF), is one of Australia's leading property fund management companies. The Fund specialises in the investment of industrial property. It currently owns interests in a diversified portfolio of 25 industrial properties throughout Australia.

http://www.growthpoint.com.au

hotchy said:

What do you think of GOZ?

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It isn't one that I follow myself. The daily volumes appear to be consistantly too low and within too tight a range for short term trading in my opinion. Following the link above provided by System leads to the GOZ site. Their annual reports indicate that they are a leading A-REIT (which is not borne out, in my opinion, by the shares on issue and/or value of the property portfolio owned/under management). A look at the information provided in Iress indicates a good earnings and yield, but the current price is at a premium to their nta.

Possibly a good share to get into (at a lower price) to sit on for yield and a longer term capital gain, if that suits your style of investment.



As always, do your own research and good luck.

nulla nulla said:

....... they are a leading A-REIT (which is not borne out, in my opinion,

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nulla nulla - surprised at this - i had this back in the bad ole days of GFC when it was named Orchard and run by Orchard funds Mgmt - they dropped like a stone with interest rate swap that went against them( and me , sigh). but their properties are great industrial bldgs mostly Woolies, got taken over by South African major holder who re-capitalised and kept same simple model, with internal mgmt , premium tenants and grow with expansion of tenants eg when woolies need more space. they had talked of small expansion into office. I was too scared to get back in as i thought they were fairly valued - as you say above NTA - bu tyou know the market likes good stocks and will pay for it.

i like reading your posts on CPA. i see you made a post on SCP which i was going to research but think itll be hard reading it all.

mgm1a said:

nulla nulla - surprised at this - i had this back in the bad ole days of GFC when it was named Orchard and run by Orchard funds Mgmt - they dropped like a stone with interest rate swap that went against them( and me , sigh). but their properties are great industrial bldgs mostly Woolies, got taken over by South African major holder who re-capitalised and kept same simple model, with internal mgmt , premium tenants and grow with expansion of tenants eg when woolies need more space. they had talked of small expansion into office. I was too scared to get back in as i thought they were fairly valued - as you say above NTA - bu tyou know the market likes good stocks and will pay for it.

i like reading your posts on CPA. i see you made a post on SCP which i was going to research but think itll be hard reading it all.

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Don't interpret my posts as a "stay away" post. As I said, it isn't on my investment list. My average hold for the last 2-3 years has been roughly 9 days (including weekends).

IMO, this stock is similar in its' climb to the likes of BWP. At a premium to the NTA probably driven by the yield as a high proportion of income. A little too high, imo, it appears that they may be topping up the distribution from borrowings (which according to their annual report is roughly geared at 45%). Probably a good secure "holder" stock paying way better than bank rates. As you point out, the market likes it and it has been soaked up for awhile pushing the price up. While the market is never wrong it can be fickle. As always .d.y.o.r.

ps. Thanks for the feedback on CPA

Someone liking it today. Almost 200,000 ordered at $2.40, up to $2.45

I hold

It's a hold for yield type of stock. There won't be a great deal of growth in the underlying distribution and the major south african investor is eager for expansion. The high gearing means most of the expansion will be (and has been) funded by equity raisings. Don't expect strong improvements in ROE in this stock, more like equity funded expansion for scale sake in a bid to increase free float and get into the A-REIT indices. It will stay well supported because of the yield, but many of the properties are leasehold (rather than freehold) and are not particularly saleable to third parties. Very defensive, but be prepared to put your hand in your pocket every time they come back for equity funded acquisitions.

Have owned some of these for over 18 months now and happy with the return, as Coolcup noted have decided twice in that period to dip into my pocket when they came back for equity funded acquisitions. Unit price has jumped 5-10% in last few months. Any obvious reason why or just the sector heating up a little.

Price and moving averages has closed above its Short term moving average. Short term moving average is currently above mid-term; AND above long term moving averages. From the relationship between price and moving averages; we can see that: This stock is BULLISH in short-term; and BULLISH in mid-long term. Six months target at au stoxline: 3.235

agumby said:

Have owned some of these for over 18 months now and happy with the return, as Coolcup noted have decided twice in that period to dip into my pocket when they came back for equity funded acquisitions. Unit price has jumped 5-10% in last few months. Any obvious reason why or just the sector heating up a little.

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The overall A-REIT sector is up about the same amount over the last few months. GOZ pays a strong yield, which is highly sought after. Also, liquidity is low which means the shares aren't readily available. They have flagged that they will soon be eligible for index inclusion which may see some institutions trying to get set ahead of the official inclusion event. The lack of liquidity means the price just gets pushed up.

thanks to both responders.

Will be included in the ASX 200 after 19 June

Growthpoint Properties Australia upgrades FY22 guidance, confirms distribution for 2H22
and provides preliminary draft portfolio valuations
Growthpoint Properties Australia (Growthpoint or the Group) announces its distribution for the six months ending 30
June 2022, upgrades its FY22 funds from operations (FFO) guidance and provides preliminary draft external
valuations of its property portfolio.
Key highlights
• FY22 FFO guidance upgraded to at least 27.7 cps
• Distribution of 10.4 cps for the six months ending 30 June 2022
• Preliminary draft external valuations indicate a $64.51 million increase which is expected to contribute an
approximate 8 cents per security (cps) increase to the Group’s net tangible assets (NTA), to $4.63 per
security pro forma, from $4.55 at 31 December 2021
Timothy Collyer, Managing Director of Growthpoint, said, “We are pleased to upgrade our FY22 FFO guidance today
to at least 27.7 cps and announce our distribution of 10.4 cps for the six months to 30 June 2022, which reflects the
continued strong performance of the Group over the year. The preliminary results of Growthpoint’s external valuations
demonstrate the resilience of the Group’s growing property portfolio, with the uplift reflecting the ongoing strength of
the industrial market and leasing success across both our office and industrial portfolios.
Ongoing market uncertainties caused by high inflation and the Reserve Bank of Australia’s increase to the official cash
rate will mean a significant rise in interest rate expense for the A-REIT sector going into the next financial year.
Growthpoint will be subject to a higher interest expense on its floating debt, with circa 60% of its debt forecast to be
fixed as at 30 June 2022. However, the Group has ample head room to debt covenants and no hedges expiring in
FY23. The Group’s exposure to favoured industrial and metropolitan office property markets and secure income from
predominantly large corporate and government tenants provide a resilient foundation for our business. Our goal
remains to provide our securityholders with sustainable income returns and capital appreciation over the long term.”
FY22 Guidance
In December 2021, Growthpoint provided upgraded FY22 FFO guidance of at least 27.0 cps. Since then, the Group
has settled its acquisition of 2-6 Bowes Street, Phillip, ACT, purchased 141 Camberwell Road, Hawthorn East, VIC,
has seen Woolworths exercise their five-year lease option for their Queensland distribution centre at Larapinta and
received the rental determination, and has continued to see leasing successes across the portfolio. As a result, the
Group has upgraded its FY22 guidance to at least 27.7 cps, which represents a minimum of 7.8% growth over FY21.
This guidance also anticipates no significant market movements or unforeseen circumstances occurring during the
remainder of the financial year.
Distribution for six months ending 30 June 2022
The distribution for the six months ending 30 June 2022 is 10.4 cps. The key dates for the distribution are:
Ex-distribution date Wednesday, 29 June 2022
Record date Thursday, 30 June 2022
Payment date Wednesday, 31 August 2022
The Group confirms that the Distribution Reinvestment Plan remains suspended and will not be in operation for this
distribution payment.
1 Gross increases, excluding capital expenditure incurred and net movement on incentives
Property portfolio external valuations
To date, Growthpoint has engaged independent external valuers to revalue 30 of its 582 properties, or 58% of the
Group’s portfolio by value, at 30 June 2022. In line with the Group’s valuation policy, the remaining valuations will be
undertaken as internal or Director’s valuations. The preliminary draft external valuations indicate a $64.51 million, or
2.2%, increase on a like-for-like basis in asset values to 31 December 2021 book values. This uplift is expected to add
approximately 8 cps to the Group’s NTA, which was $4.55 per security at 31 December 2021.
Industrial
The Group has had 17 of its 31 industrial assets revalued by independent valuers, representing 61% of its industrial
portfolio by value. The preliminary draft external valuations indicate the value of the Group’s industrial portfolio has
increased by $69.8 million, 7.0% higher on a like-for-like basis than the 31 December 2021 book values. Rent growth
being a significant driver of the uplift. On a like-for-like basis, the average market capitalisation rates of the industrial
properties valued has reduced approximately 24 basis points to 4.7%.
Office
Growthpoint has also had 13 of its 27 office assets revalued by independent valuers, representing 56% of its office
portfolio by value. The preliminary draft external valuations indicate the value of the Group’s office portfolio has
marginally decreased, by $5.3 million, 0.3% lower on a like-for-like basis than the 31 December 2021 book values. On
a like-for-like basis, the average market capitalisation rates of the office buildings valued has increased approximately
10 basis points to 5.0%.
The valuations, including the impact of Director’s valuations on the balance of the portfolio, are subject to finalisation
and audit and could be revised up or down. They also assume that there is no material change in market conditions
before 30 June 2022, the effective date of the valuations.
The final audited valuations for individual properties will be available as part of Growthpoint’s FY22 results, which will
be released to the market on Tuesday 16 August 2022.
This announcement was authorised for release by Growthpoint’s Board of Directors


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( DYOR )

i do not hold this share ( but MAYBE i should crunch the numbers again )