GDI Property Group (GDI) H2 2025 earnings summary

Executive summary

• Over 32,000 sq meters leased in FY25, with 21,000 sq meters from office space, driving 20% FFO growth and a 22% increase in Property Division FFO year-over-year.

• Asset recycling included the sale of Skyyards and dealership properties, with a $74 million dealership sale at a 50% premium and IKEA sale expected to deliver a 9% IRR.

• Co-living JV contributed $6.5 million to FFO, achieving a 20% return hurdle and significant asset value uplift.

• Leasing and fit-out strategies are expected to continue driving growth into FY26, with further dealership sales and a syndicated facility refinancing increasing the limit to $426.5 million.

• Car park segment delivered a 15% profit increase, benefiting from high city patronage and no work-from-home impact in Perth.

Financial highlights

• FFO per security rose to $0.0662 (6.62c), up from 5.52c last year, with total FFO at $35.6 million in FY25.

• NTA per security increased to $1.20 from $1.19 year-over-year; all balance sheet assets revalued.

• Gearing steady at 34%, LVR at 41%, and ICR at 2.1x, all within policy and covenant limits.

• Distribution maintained at $0.05 (5.0c) per security, with guidance to continue next year.

• Net profit after tax was $41.5 million in FY25, a turnaround from a $5.6 million loss in FY24.

Outlook and guidance

• Leasing momentum and fit-out strategies expected to continue into FY26, with focus on operational improvements and asset recycling.

• Anticipates further interest rate cuts to reduce FY26 interest expense.

• Distribution policy remains conservative, with special dividends possible on large transactions.

• Performance fees from Broadmeadow asset possible in 2027 or later, depending on DA process.