Financial Analysis for Investment Advice

FINANCIAL ANALYSIS FOR INVESTMENT ADVICE 1
FINANCIAL ANALYSIS FOR INVESTMENT ADVICE
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FINANCIAL ANALYSIS FOR INVESTMENT ADVICE 2
FINANCIAL ANALYSIS FOR INVESTMENT ADVICE.
Abstract
This research was purposed towards financial analysis of Growth point properties limited.
The main purpose was to assess different financial drivers of the company to achieve objectives
such like profit and shareholders wealth maximization. Different tools of financial statements
were considered since they were considered important for this study. Precautions were thereafter
developed to enhance company’s economic development. The tools that were used for this study
range from analysis of the current period financial information available on financial statement
to analysis of data from 2015 to 2018 for trend analysis of ratios. The whole work consisted of
theoretical and analytical analysis. The theory was used to support analytical results arrived at
while analytical evidence which was obtained from rigorous analysis of financial statements
contained in the books of accounts like vertical, horizontal and ratio analysis all of which are
important in determining company’s financial position. Based on the result of this study,
recommendations were proposed thereafter to institutional investor for informed investment
decision making.

FINANCIAL ANALYSIS FOR INVESTMENT ADVICE 3
Introduction
Investors always purpose to invest in corporate promising future high return on
investment. This is because they are always looking for the best portfolios to diversify their
wealth. Therefore, investment analyst are tasked with analysis of the company’s financial
performance and future cash flow panorama for the investor to make informed decision.
Investors always take advantage of possibility of future success of a company so that they can be
well position to maximize their wealth and investment report is best to aid with such information.
Australian stock market is a complicated market and companies involve in this market
are always in competition so that they can hold or improve their position to attract even more
investments. For the purpose of our analysis, we will use Growth point properties limited which
are real estate company which are also listed with Australian stock exchange. Real estate is
considered as one of the fast growing industry in the current world (Geltner, Miller, Clayton,
Eichholtz 2011). Measure of a corporate performance is very important for a range of
stakeholders and investors to make decisions on investment.
These performance evaluations is viewed on the basis of financial performance which has
a broad perspective ranging from project evaluation to analysis of return on investments, analysis
of risks business is exposed to, trend analysis, analysis of dividend payout and retention ratio,
and analysis of financial and performance ratios. Consequently, it is important to note that
financial information provides a background for analysis in which shareholders; prospective
investors and researchers can use to compare different corporate to make investment decisions
(Gallizo & Salvador, 2013).

FINANCIAL ANALYSIS FOR INVESTMENT ADVICE 4
Description of the company
Growth point properties Australia is a company that invests in rental generating and well
maintained properties within Australia and is considered as the best real estate property company
based on its recent performances. These properties may also be considered to be leased. The
Company is listed in Australian securities exchange ASX with GOZ code and has maintained
this position for the current years. Growth point properties Australia has diversified in terms of
workplace set up with 57 offices and properties worth up to $3.8B and over 80% of assets
located on the Eastern market segment which has a mandate to invest in retail, industrial and
office properties.
Growth point properties limited are the major security holder in GOZ. This is a South
Africa's largest listed property group with gross assets of over $13.1 billion. Growth point
Properties Limited is the largest shareholder in GOZ with a stake of 65% therefore exercising
much control. This can be contributed by the increased demand of real estate products in this
country and other investors in New Zealand and Australian corporate investors and other
Australian wealthy individuals.
Historical and current factors that have contributed to the company’s comparative
advantage
Some of the key factor that have led to the growth of the company as well as comparative
advantage on this industry are extensively discussed in fern fort university extensive research.
These factors have been held over time and significant improvement on them has helped the
company gain financial superiority. These among the factors are;