The comparison of the Australian REITs of Growthpoint Properties Australia and Dexus intensifies as the year 2026 draws closer. Growthpoint has reported improved leasing momentum and raised projections.
Shareholders have started to consider the stability of income over the size of their portfolio. In 1H26, the group provided operations funds of $91.9 million. Statutory net profit was at 62.6Million.
The management increased FY26 FFO expectations to 23.0-23.6 cents per security. Occupancy at the office reached 94 % in the first half. The occupancy rate in the industry stood at 98. These figures indicate a defensive income power.
The plan will focus on proactive asset management and strict capital utilisation. New assets under management also increased. This performance puts Growthpoint in the limelight of passive income investors.
Growthpoint’s office and logistics portfolio continues expanding across key Australian markets. [GrowthPoint Australia]
Can Growthpoint’s Updated Guidance Outpace Dexus Returns In 2026?
The new forecast by Growthpoint indicates that it will have better earnings visibility. The REIT now expects 23.0–23.6 cps in FY26. There was a major leasing implementation followed by that upgrade.
The distribution guidance of 18.4 cps is also the same. The payout ratio is between the target band of 75 and 85% range. Dividends of 9.2 cps were announced on the half.
The net tangible assets were at 3.10 per security. This value has stood at this level compared to the period of 3.09. Gearing increased to 41.2% from 39.7%. The balance sheet was used to generate new funds by the management. The level remains within the range of 3545% target.
In comparison, Dexus investors tend to concentrate on size and prime CBD. However, increasing occupancy rates and leasing pickup could give Growthpoint accelerated earnings growth. This brings the key issue in the Growthpoint vs Dexus REIT debate.
Industrial And Office Assets Drive Reliable Income Streams
Stable income is still based on industrial property. Growthpoint had leased 62,566 square metres of the segment. Occupancy was at 98 %, and WALE was 5.7 years. There was also resiliency in office assets.
The leasing in the office reached 30,068 sqm. Occupancy increased to 94 %, and WALE was 5.5 years. Further 30,751 sqm was agreed on 31 January 2026. These measures decrease the expiry risk in the short term.
The actual WALE of the portfolio was 5.6 years. With such long leases, they present predictable cash flows. Dexus also enjoys the long leases, but the volumes of Growthpoint have been good in recent times.
To income investors, the lease security is usually more important than the size of the assets. The figures hence make Growthpoint stronger in this Australian real estate investment trust debate.
High-occupancy logistics and office sites support steady rental income. [Brigade Group]
What Role Does New AUM Play In Future Growth?
New capital markets give a new growth engine. Growthpoint developed new assets under management of 124.9 million. These were the Growthpoint Macquarie Park Trust and the Growthpoint Australia Logistics Partnership. The group also disposed of AUM to the tune of 140.0 million.
Another 172.8 million was settled in January. These actions provided liquidity to the syndicate investors. They were also repurposing funds on better prospects. Asset recycling assists in profits without over-debting.
The model reflects the international best practice in REIT. Dexus operates like-minded wholesale funds, but additions of Growthpoint make its fee base broader.
Cyclical volatility can be ironed out by fee revenue. This enhances strength in weak markets. Recurring management fees are important to investors who wish to have the best ASX REIT as a passive income earner in 2026.
Balance Sheet Discipline Supports Long-Term Stability
The management of balance sheets is still the core of REIT safety. The gearing of Growthpoint increased to 41.2% but remains within control. Headroom invested in new investment vehicles. Net tangible assets remained constant.
The group also attained its Net Zero Target on 1 July 2025. NABERS ratings were kept improving. Sustainability credentials draw institutional capital. They can also reduce expenditure in the future.
Dexus also focuses on green buildings; however, the milestone achieved by Growthpoint shows implementation. Environmental performance and stable leverage minimise downside risk. All these characteristics are normally valued by income investors. Financial discipline is decisive in a volatile rate environment.
Sustainable buildings and disciplined funding strengthen long-term returns. [Construct Estimates]
Which REIT Looks Better For Passive Income Investors In 2026?
The response will be based on risk appetite and goals. Growthpoint has increasing guidance and good leasing momentum. Over 94% occupancy in all segments is helping to maintain a consistent cash flow.
The industrial demand is still strong in the country. New AUM increases revenue sources. Dexus, on the other hand, offers scale and premium office exposure. Other investors like its blue-chip tenant base. However, the improving figures of Growthpoint bring the difference.
Australian REIT comparison is thus slightly leaning towards Growthpoint in terms of income stability. It can be interesting to those who need defensive yield. But having a mish-mash in both may decrease portfolio risk. Monitoring of leasing and interest costs is a critical aspect.
Also Read: Home Improvement Retail Market Australia Faces Bold Bunnings Expansion
FAQs
- What Is Growthpoint’s FY26 FFO Guidance?
A: The REIT expects 23.0–23.6 cents per security.
- How High Is Current Office Occupancy?
A: Office occupancy reached 94% during 1H26.
- What Industrial Occupancy Level Was Reported?
A: Industrial assets maintained 98% occupancy.
- Which REIT Suits Passive Income Seekers In 2026?
A: Growthpoint appears stronger for stable income, though diversification helps.
