GDI Property Group (GDI) H1 2025 earnings summary

Executive summary

• Over 16,000 sqm of office space leased since FY25 start, driving strong leasing momentum and outperforming a slower market.

• FFO per security increased 26% year-over-year, with Property FFO up 38%.

• Three dealership assets sold at premiums to valuation, with further sales post-period; ongoing non-core asset recycling.

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

• Co-living JV contributed $3.5m to FFO, maintaining a 20% return on initial capital.

Financial highlights

• Total FFO for the half-year was $16.5m, up from $13.1m year-over-year.

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

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

• Weighted average cap rate across portfolio at 6.7%.

• Net profit after tax was $18.3m, reversing a prior period loss.

Outlook and guidance

• Distribution guidance of 5.00 cents per security for FY25 maintained, with some distributions to be paid from capital.

• Focus remains on aggressive leasing, asset recycling, and fit-out strategies.

• Expectation of a more balanced landlord-tenant negotiation environment as market tightens.

• Sentiment is that office market values are bottoming out, with potential for rebound.