GDI Property Group (GDI) H2 2025 earnings summary

Executive summary

• Leased or renewed over 32,000 sqm, with 21,000 sqm from office space, raising consolidated occupancy to 88.2% and driving 20% FFO growth and a 22% increase in Property Division FFO year-over-year.

• Asset recycling included over $250 million in sales, such as Skyyards, IKEA, and dealership properties, delivering strong liquidity, a $74 million dealership sale at a 50% premium, and a 9% IRR for investors.

• Co-living JV contributed $6.5 million to FFO, achieving a 20% return hurdle, with Norseman and Newman assets increasing in value by up to 50%.

• Car park segment delivered a 15% profit increase, benefiting from high city patronage and minimal work-from-home impact.

• Disciplined capital expenditure focused on speculative fit-outs and tenant-attracting improvements to capture rental growth amid a looming Perth office supply gap.

Financial highlights

• FFO per security rose to 6.62 cents in FY25 from 5.52 cents in FY24, with total FFO up 20% to $35.6 million and Property FFO up 22%.

• Net profit after tax was $41.5 million in FY25, reversing a prior year loss.

• NTA per security increased to $1.20 from $1.19, with all balance sheet assets revalued.

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

• Distribution maintained at 5.0 cents per security, with intent to continue in FY26.

Outlook and guidance

• Leasing and fit-out strategies, operational improvements, and asset recycling expected to drive further FFO growth into FY26.

• Distribution guidance of 5.0 cents per security for FY26, subject to no material changes.

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

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