GDI Property Group (GDI) H2 2024 earnings summary

Executive summary

• Over 37,000 sqm of office space leased in FY24, supporting strong leasing momentum into FY25 and underpinning NTA, especially from core assets.

• WS2 officially opened as Perth's first timber and adaptive reuse office building, enhancing the portfolio's differentiation and market position.

• All assets independently valued in FY24, with NTA per security at AUD 1.19 as of 30 June 2024.

• Co-living JV delivered AUD 6.8 million in FFO, exceeding a 20% return on invested capital.

• FY24 distribution of AUD 0.05 per security, with the same guidance for FY25.

Financial highlights

• FFO increased to AUD 29.6 million in FY24, driven by higher contributions from Westralia Square, WS2, and the Co-living JV.

• Property FFO from Westralia Square and WS2 rose to AUD 23.7 million, while Mill Green's FFO was AUD 14 million.

• Net interest expense rose to AUD 15.8 million, reflecting higher rates and debt drawn for WS2.

• FFO per security was AUD 0.0552, with AFFO at AUD 13.7 million.

• Gearing at 33%, with surplus facility capacity of AUD 49.2 million.

Outlook and guidance

• Distribution guidance for FY25 maintained at AUD 0.05 per security, with a portion potentially paid out of capital.

• Enhanced Property FFO expected in FY25 due to recent leasing successes and higher occupancy.

• Focus remains on operational returns, targeted acquisitions, and staged growth in timber and adaptive reuse projects.