Garda Property Group (GDF) H1 2025 earnings summary

Executive summary

• Internally managed REIT focused on industrial assets in south-east Queensland, with 85% of portfolio value in industrial and 15% in office properties.

• Statutory net loss after tax of $10.2 million for HY25, improved from $34.6 million loss in HY24.

• FFO rose to $7.4 million (3.65 cps), up from $7.0 million (3.30 cps) in HY24.

• Portfolio valued at $513 million, with a weighted average lease expiry of 4.5 years and a portfolio cap rate of 6.21%.

• Strategic shift underway to become a pure-play industrial REIT, with major asset sales including North Lakes and Cairns Corporate Tower.

Financial highlights

• HY25 revenue was $15.5 million, down from $17.0 million HY24, mainly due to office asset divestments.

• NTA per security at 31 Dec 2024 was $1.62, down from $1.71 at 30 Jun 2024.

• Gearing at 31 Dec 2024 was 40.0%, expected to reduce to 26% post North Lakes settlement.

• Distributions paid totaled $6.4 million (86.3% payout ratio), and fully franked dividends paid were $908,000.

• Cash and cash equivalents at period end were $14.5 million, down from $17.0 million at 30 June 2024.

Outlook and guidance

• FY25 FFO payout ratio guidance upgraded to 95%, with income return guidance of 7.2 cps (6.3 cps distribution, 0.9 cps dividend).

• One-off special distribution planned post North Lakes sale to address capital gains tax for investors.

• Additional net property income of $4.3 million p.a. expected from Acacia Ridge developments when fully leased.

• Settlement of the North Lakes industrial development site sale ($114 million) is expected before FY25 year-end, conditional on completion of civil works.

• Focus will shift to infill development at Acacia Ridge and Morningside following recent asset sales and project completions.