GOZ – Credit Suisse rates the stock as Neutral

Growthpoint Properties has upgraded funds from operations guidance to account for strong leasing and lower funding costs.

Credit Suisse says the upgrade excludes upside from its recent Bowes St, Canberra, acquisition; debt costs have fallen post refinancing; and December 2021 revaluations should increase net tangible asset backing by about 33c a share to $4.50 (although its peers are in a similar position).

All up, the broker spies 83c earnings upside annually. FY22 FFOcps rises 2.1% to 3%.

Target price rises to $4.36 from $4.22. Neutral rating retained.

Sector: Real Estate.


Target price is $4.36.Current Price is $4.27. Difference: $0.09 – (brackets indicate current price is over target). If GOZ meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).



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