Growthpoint Properties (ASX:GOZ) has announced that it expects funds from operations (FFO) to deliver between 22.8¢ and 23.6¢ in fiscal year 2026, with a distribution of 18.4¢ per security. The real estate group also reported a significant reduction in its net loss, which has been trimmed to $124.6 million. This is a notable improvement compared to the nearly $300 million loss reported in the previous year. Growthpoint specialises in the ownership, management, and development of properties across various sectors. The company aims to provide sustainable income and long-term capital growth for its investors through strategic property investments.
In line with previous guidance, Growthpoint will pay an ordinary distribution of 18.2¢ per security. Additionally, a one-off distribution of 2.1¢ per security will be issued. This distribution strategy represents a payout ratio of 78 per cent, excluding the one-off distribution, which aligns with the company’s target payout ratio range of 75 to 85 per cent of funds from operations. The company’s focus remains on maintaining a balanced approach to distributions and reinvestment in its property portfolio.
Growthpoint’s improved financial performance and commitment to its distribution policy reflect its efforts to navigate the current economic environment and deliver value to its security holders. The anticipated FFO and distribution levels for fiscal 2026 indicate a stable outlook for the company’s future performance. Investors will be closely watching how Growthpoint continues to manage its portfolio and capitalise on opportunities in the property market.
