Growthpoint Properties’ September-quarter trading update pleased Credit Suisse, thanks to its $50.9m incremental acquisition of Dexus Industria REIT ((ADI)); a -25 basis-point fall in the cost of debt, and leasing progress at Botanicca 3.
Weighted-average lease-expiry and portfolio occupancy were steady.
The broker was surprised that management reiterated guidance given the strength of the data and notes the balance sheet offers room for further acquisitions and the REIT’s Industrial portfolio valuation is conservative.
Funds from operations (FFO) forecasts rise 1% to 1.2% for FY22-FY24. Target price inches up 1c to $4.22 from $4.21. Neutral rating retained.
Sector: Real Estate.
Target price is $4.22.Current Price is $4.22. Difference: $0.00 – (brackets indicate current price is over target). If GOZ meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
