Growthpoint Properties Australia kicks off FY26 with robust leasing activity, high occupancy rates, and a strategic $24 million industrial acquisition, maintaining its financial guidance and sustainability credentials.
- Office portfolio occupancy rises to 93% with 16,094 sqm leased
- Industrial portfolio maintains 98% occupancy and 5.8 years WALE
- Acquisition of $24 million industrial asset in Bundamba, Queensland
- FY26 funds from operations guidance steady at 22.8–23.6 cents per security
- GRESB sustainability score held firm at 85
Strong Start to FY26
Growthpoint Properties Australia has reported a solid first quarter for the 2026 financial year, demonstrating continued momentum across its office and industrial property portfolios. The company’s latest update reveals a resilient weighted average lease expiry (WALE) of 5.6 years and a high occupancy rate of 94%, underscoring the strength of its leasing strategy and tenant relationships.
Office leasing activity was particularly notable, with 16,094 square meters leased, representing 3.4% of the office portfolio income and pushing occupancy up to 93%. Meanwhile, the industrial segment maintained an impressive 98% occupancy with 34,345 square meters leased, accounting for 8.3% of industrial portfolio income and sustaining a WALE of 5.8 years.
Strategic Acquisition and Partnership Growth
Growthpoint’s expansion strategy is further highlighted by the Growthpoint Australia Logistics Partnership’s recent contract to acquire a $24 million industrial asset in Bundamba, Queensland. This move not only strengthens the company’s industrial footprint but also aligns with its focus on partnering with like-minded investors to grow its portfolio sustainably.
CEO Ross Lees emphasized the company’s customer-centric approach and leasing success, noting that as of 31 October 2025, an additional 13,490 square meters of office space and 41,808 square meters of industrial space were under terms. This leasing volume surpasses the entire office leasing completed in the previous financial year, signaling robust demand and effective asset management.
Sustainability and Financial Outlook
On the sustainability front, Growthpoint maintained its GRESB score at 85, reflecting ongoing commitment to environmental responsibility. The company also reaffirmed its FY26 funds from operations (FFO) guidance of 22.8 to 23.6 cents per security and distribution guidance of 18.4 cents per security, indicating confidence in its operational and financial outlook despite broader market uncertainties.
With less than 3.5% of the industrial portfolio leases set to expire in FY26, Growthpoint appears well-positioned to sustain its performance. The majority of recent industrial leasing activity has been to existing tenants, many expanding into new regions, which bodes well for tenant retention and portfolio stability.
Bottom Line?
Growthpoint’s strong leasing momentum and strategic acquisition set the stage for a promising FY26, but market watchers will be keen to see how FIRB approval and leasing pipelines evolve.
Questions in the middle?
- Will FIRB approval for the Bundamba acquisition proceed smoothly before year-end?
- How will Growthpoint manage potential market fluctuations impacting leasing demand?
- What are the prospects for further industrial portfolio expansion through partnerships?