Morningstar has updated its forecast for real estate group Growthpoint Properties Australia (ASX:GOZ), following a previous report which displayed out-of-date forecasts pertaining to April 2023 that were not updated for fiscal 2023 results.

The newly revised forecasts incorporate a quicker surge in interest costs and exclude some development income, due to persistently high interest rates and heightened construction costs, according to the brokerage.

A lower likelihood of profitable new projects on Growthpoint’s balance sheet is now predicted by Morningstar.

Despite these changes, the brokerage maintains a fair value estimate of A$3.80 per share.

In terms of stock ratings, four out of six analysts rate the stock as ‘buy’ or higher, with two rating it as ‘hold’, while the median price target is A$3.32, according to LSEG data.

Growthpoint’s stock has fallen 27.9% this year, as of its most recent close.

Growthpoint Properties Australia (ASX:GOZ) is a group established in the real estate sector.