Garda Property Group (GDF) H2 2025 earnings summary

Executive summary

• Asset sales of North Lakes and Cairns to concentrate portfolio in Brisbane industrial sector, reducing gearing to 14.7% post-settlement.

• Lending activities expanded, with $44.0 million deployed, contributing 23% of FY25 revenue.

• FY25 FFO guidance upgraded by $1.6 million (12%) to $15.0 million (7.2–7.4 cps), driven by increased lending activities.

• FY25 distribution guidance maintained at 6.3 cps, with a fully franked special dividend of 0.9 cps, totaling 7.2 cps and an 85% FFO payout ratio.

• North Lakes sale settlement expected August–September 2025, with net proceeds of $113 million to reduce borrowings and gearing.

Financial highlights

• FY25 revenue was $32.8 million, down $2.7 million year-over-year due to asset divestments.

• Net loss after tax of $6.1 million, improved from $42.9 million loss in FY24.

• FFO for FY25 was $15.0 million (7.2–7.4 cps), up 17% from initial guidance.

• NTA per security at 30 June 2025 was $1.61, down from $1.71 a year earlier.

• Gearing reduced to 42.7% at June 2025, with further reduction to 14.7% expected post-sales.

Outlook and guidance

• FY26 distribution guidance of 8.0 cps, up 11% from FY25, with a forecast payout ratio of ~90%.

• FY26 FFO guidance of 9.1 cps, a 26% increase on FY25.

• Yield guidance of 6.3% based on ASX price of $1.27 as of 29 July 2025.

• Distributions and special dividend payable quarterly, with final payment expected 15 July 2025.

• Earnings upside expected from leasing vacant space at Acacia Ridge and further lending revenue.