ASX:GOZ
Growthpoint Properties Australia Ltd
Investment Summary
The fund managers believe that Growthpoint Properties Australia Ltd (GOZ) presents a compelling investment opportunity, particularly given its current share price of approximately $2.33. In their opinion, the company is trading at a 36% discount to forecast tangible book value and offers an attractive 8.5% dividend yield. They note that the share price has declined 50% from its 2022 high, suggesting that current market conditions are already reflected in the price. The fund managers emphasize that investing in GOZ allows for diversified exposure to industrial and office properties with long duration leases (5+ year WALE) and a strong tenant base comprising government and listed companies which represent roughly 75-80% of portfolio income. They see this as a strategic entry point aligned with a potential market recovery.
Commentary From The Managers
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.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.