GDI Property Group (GDI) H1 2025 earnings summary

Executive summary

• Over 16,000 sqm of office space leased or renewed since July 2024, maintaining strong leasing momentum and outperforming a slower market.

• FFO grew 26% year-over-year, with Property FFO up 38% and co-living JV contributing $3.5m, maintaining a 20% return on initial capital.

• Asset sales in the Autoleague/Dealership portfolio achieved premiums of 2% to 23% over valuation, with proceeds used to reduce debt.

• WS2 officially opened, recognized for sustainability and innovation, winning multiple global industry awards.

• Net profit after tax rebounded to $16.4m–$18.3m, reversing prior period losses.

Financial highlights

• FFO for the half-year was $16.5m, up from $13.1m year-over-year; FFO per security rose 26% to 3.07 cents.

• Property FFO: $25.4m (up from $18.5m); Funds Business FFO: $3.5m; Co-living JV FFO: $3.5m.

• NTA per security stable at $1.19 as of December.

• Distribution of 2.50 cents per security confirmed for the period, with intent for 5.00 cents for FY25.

• Weighted average capitalisation rate across portfolio at 6.7%; average value per sqm $8,293.

Outlook and guidance

• Distribution guidance for FY25 set at 5.00 cents per security, with some distributions potentially paid from capital.

• Focus remains on aggressive leasing, asset recycling, and maintaining through-cycle distributions.

• Expectation of a more balanced landlord-tenant negotiation environment as market tightens and values bottom out.