Growthpoint Earnings: Exceeds Our Forecast, but Helped by Pulling Forward Rental Income

No-moat Growthpoint Properties Australia’s fiscal 2023 result exceeded our expectations, though it was helped by income being pulled forward from future periods. Fiscal 2023 included one-off revenue from a large tenant ending a lease early, with almost two years of remaining rent paid out and recognized in fiscal 2023 but a corresponding vacancy in fiscal 2024 that needs to be filled. Funds from operations was AUD 26.8 cents per security (3% below fiscal 2022), and distributions totaled AUD 21.4 cps (up 3% on fiscal 2022). Guidance for fiscal 2024 is for FFO of AUD 22.5-AUD 23.1 cps and distributions totaling AUD 19.3 cps.