Garda Property Group (GDF) H2 2024 earnings summary

Executive summary

• Completed full exit from Melbourne office portfolio, repositioning as a pure-play industrial REIT with a focus on south-east Queensland and a growing lending business.

• Delivered new industrial facilities, advanced major development projects, and increased lending activities, contributing 12% of FY24 revenue.

• Proactive capital management included a share buyback, debt facility reduction, and hedging profile restructuring.

Financial highlights

• FY24 distributions of 6.3 cps with a 97.5% FFO payout ratio; NTA per security at $1.71.

• Net loss after tax of $42.9 million, mainly due to valuation losses and asset disposals.

• Revenue of $31.5 million, down from $32.6 million in FY23; rental revenue declined, lending revenue increased.

• Gearing at 36.5%; 69% of debt hedged; $217.2 million drawn debt with $52.8 million undrawn headroom.

• 9.6 million securities bought back at an average price of $1.21, representing 4% of securities on issue.

Outlook and guidance

• FY25 distribution guidance of 6.3 cps, plus a fully franked special dividend of 0.9 cps, totaling 7.2 cps (up 14.3% from FY24).

• FY25 FFO payout ratio expected at ~100%; distributions to be 85% tax advantaged.

• Lending revenue forecast to rise to 18% of group revenue in FY25.

• Additional net property income expected in FY26 from Acacia Ridge projects.