GDI Property Group (GDI) H1 2026 earnings summary

Executive summary

• FFO grew 29.1% year-over-year, with Property Division FFO up 13.9% and Co-living JV FFO up 36.8%, supported by strong leasing and asset sales at significant premiums.

• NTA remained stable at AUD 1.20 per security, with key assets like Westralia Square and Murray Street car parks increasing in value.

• Over AUD 250 million in asset sales completed, including dealership and car yard portfolios sold at up to a 50% premium to acquisition price.

• Leasing momentum is strong, with over 13,000 sqm of office leasing and occupancy at 197 St George's Terrace rising from 61% to over 91%.

• Co-living portfolio expanded to over 920 rooms, with new Moranbah acquisitions and strong operational performance.

Financial highlights

• FFO per security increased to 3.94 cents for HY26, up from 3.07 cents in HY25.

• Distribution for the half at AUD 0.025, with intent to pay AUD 0.05 for the year.

• Net tangible assets per security remained stable at AUD 1.20.

• Net interest expense declined due to expiry of an expensive swap, down 7.8% YoY to $10.1m.

• Net profit after tax was $16.0 million for HY26.

Outlook and guidance

• Distribution guidance of 5.0 cents per security for FY26 is reaffirmed and well supported by operating cash flow and FFO.

• Strong leasing momentum and operational improvements are expected to continue, supported by a tightening office market and supply gap.

• Rental growth forecasts are strong, with CBRE projecting 39% over five years, though management expects even higher growth.

• Key priorities include completing re-leasing at 197 St Georges Terrace and advancing the Mill Green precinct repositioning.