Morningstar warns of earnings fall for Australia's Growthpoint Properties

Growthpoint Properties Australia

11/12/2023 21:07

** Brokerage firm Morningstar believes real estate
investment trust Growthpoint's  GOZ.AX  revenue growth may
dampen due to rising finance costs until debt costs peak
    ** Fair value estimate for Growthpoint is A$3.80
    ** "Our assumptions include flat to down office rents in
fiscal 2024 (including the effect of incentives) and only a
gradual recovery" - Brokerage    
    ** Morningstar says GOZ is in reasonable financial health,
but there are risks
    ** There is a risk Growthpoint may need to sell assets or
raise equity - brokerage     
    ** Risk, however, is mitigated to a degree by leases, with a
weighted average expiry of over six years, Morningstar says
    ** GOZ down 16.8% YTD, as of last close

 (Reporting by Adwitiya Srivastava in Bengaluru)
 ((Adwitiya.Srivastava@thomsonreuters.com;))