Growthpoint Properties Australia (ASX:GOZ) has been awarded a ‘buy’ rating by Citi, who has set a price target of A$2.70.

The shares for Growthpoint Properties Australia ended 0.4% higher on Thursday.

Brokerages have indicated a share price discount to net tangible assets of 40% and FY24E dividend yield of 8.5% provides a value underpin.

The company’s gearing, however, remains higher than its peers at 38.5%.

The firm’s FY24 distribution guidance is at 19.3 cps which aligns with Citi and VA consensus expectations.

Amid global doubts about office fundamentals, investors favor differentiation based on quality and location, which might mean greater discounts to NTA for exposed shares until sentiment becomes more positive, according to Citi.

Out of five analysts, three rate the stock as ‘buy’ or higher, and two have a ‘hold’ status.

Their median price target is A$2.70, as per LSEG data.

The stock is down approximately 2% year-to-date.

Growthpoint Properties Australia is a property investment company specialising in commercial real estate within Australia.