Fund Manager Summary
The fund managers believe there is a significant opportunity in Growthpoint Properties Australia Ltd (GOZ) as they see it trading at a cyclical low in the commercial real estate market. In their opinion, the current 8.5% dividend yield and a share price that is 36% below forecasted tangible book value indicate compelling upside potential aligned with a market recovery. They note that the share price has declined 50% from its 2022 high, with current softening conditions already reflected in the valuation. GOZ's diversified exposure to industrial and office properties, coupled with long-duration leases averaging over 5 years and a tenant base of predominantly high-quality large entities, including government and listed companies, enhances its appeal for adequate income during the interim.
Source: Trading View
Commentary From The Managers
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Sterling Managed Investments
28 Feb 2025
$2.39
Summary
- Sterling Managed Investments sold their investment in GOZ as part of a reevaluation of their positioning within the REITs sector.
- Lower interest rates may support general real estate, but the fund manager has greater conviction in higher-quality office exposures.
- They prefer assets located in areas with stronger long-term fundamentals.
- The decision reflects ongoing shifts in office demand and the increasing traction of return-to-office mandates.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Sterling Managed Investments
28 Feb 2025
$2.39
- Sterling Managed Investments sold their investment in GOZ as part of a reevaluation of their positioning within the REITs sector.
- Lower interest rates may support general real estate, but the fund manager has greater conviction in higher-quality office exposures.
- They prefer assets located in areas with stronger long-term fundamentals.
- The decision reflects ongoing shifts in office demand and the increasing traction of return-to-office mandates.
Summary
Endeavor Asset Management
31 July 2024
$2.33
- Endeavor Asset Management observed a chance to enhance real estate exposure at what appears to be a cyclical low in the commercial real estate market.
- Growthpoint Properties Australia (GOZ), an ASX-300 REIT, is trading at an 8.5% dividend yield and is 36% below forecast tangible book value.
- There is a belief that GOZ presents significant upside potential linked to market recovery and offers adequate income in the meantime.
- GOZ's share price has decreased by 50% from its peak in 2022, with current softening conditions already reflected in the price.
- Growthpoint provides diversified exposure to industrial and office properties, featuring long-duration leases (5+ year WALE).
- Approximately 75-80% of GOZ's portfolio income is derived from reputable high-quality large tenants, including government and listed companies.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"Investors might find a compelling opportunity at what appears to be a cyclical low in commercial real estate. With Growthpoint Properties Australia offering an enticing 8.5% yield and significant upside potential, the current conditions could pave the way for a robust recovery."
Last Updated: 28 Feb 2025
Query The Data
Frequently Asked Questions
Who is investing in Growthpoint Properties Australia Ltd (ASX:GOZ)?
Fund managers including Endeavor Asset Management and Sterling Managed Investments have invested in Growthpoint Properties Australia Ltd (ASX:GOZ).
Why do fund managers invest in Growthpoint Properties Australia Ltd?
Fund managers are investing in Growthpoint Properties Australia Ltd due to its attractive valuation at a cyclical low in the commercial real estate market. With a current dividend yield of 8.5% and a share price significantly below forecast tangible book value, they see compelling upside potential as the market recovers. The company's diversified portfolio, featuring long-duration leases with high-quality tenants, provides stable income, making it a strategic choice for real estate exposure.
What happened to Growthpoint Properties Australia Ltd (ASX:GOZ)?
There have been no recent updates from fund managers regarding Growthpoint Properties Australia Ltd although fund managers including Endeavor Asset Management and Sterling Managed Investments have previously commented.