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, NTA per security at AUD 1.19 as of 30 June 2024, and a distribution of AUD 0.05 declared for FY24, with the same guidance for FY25.

• Co-living JV delivered AUD 6.8 million in FFO, exceeding a 20% return on invested capital, with ongoing repositioning and acquisition activity.

• Board and management team renewed, with two new directors and a new chairman.

Financial highlights

• FFO per security rose to AUD 0.0552 (5.52c), with total FFO at $29.6m in FY24, driven by higher contributions from Westralia Square, WS2, and the Co-living JV.

• Westralia Square and WS2 contributed AUD 23.7 million, up from AUD 18 million year-over-year; Mill Green's FFO declined to AUD 14 million.

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

• Gearing at 33%, with high levels of interest rate protection and surplus facility capacity of AUD 49.2 million.

• Weighted average capitalization rate at 6.6%, average value per sqm at AUD 8,019.

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.

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