The GPT Group (GPT) H1 2024 earnings summary

Executive summary

• Assets under management reached AUD 34.4 billion, with a 2-year FUM CAGR of 26% and $2.4 billion incremental FUM in 6 months, spanning retail, office, and logistics sectors.

• Funds From Operations (FFO) for H1 2024 was AUD 309.1 million, down 2.4% from H1 2023; distribution per security was 12.0¢, down 4.0%.

• Net loss after tax was AUD 249.4 million, primarily due to property devaluations totaling $566.8 million in retail, $579.1 million in office, and $29.4 million in logistics.

• Strategic focus is on expanding investment management, optimizing capital allocation, and leveraging partnerships for higher returns.

• ESG remains integral, with ongoing achievements in energy, water, and waste management, and 100% carbon neutral retail and office portfolios.

Financial highlights

• FFO per security decreased 2.4% to 16.14¢; AFFO fell 2.8% to $258.4 million; distribution per security was 12.0¢ for the half year.

• Retail, Office, and Logistics contributed 30.8%, 23.9%, and 22.3% of FFO, respectively.

• Retail segment income grew 4.5% year-over-year; Logistics up 6.2%; Office declined 0.6%.

• Portfolio value declined 3.6% over the period; NTA per security dropped to $5.36.

• Trading profits of $3.4 million were realised from a land sale.

Outlook and guidance

• 2024 FFO is expected to be approximately 32.0¢ per security, with a distribution of 24.0¢ per security.

• Guidance for full-year earnings and distributions is reaffirmed.

• Second half expected to mirror first half performance, with higher interest costs offsetting trading profits.

• Focus remains on optimizing assets, funds, and partnerships, and establishing new partnerships for growth.

• Optimism for continued retail and logistics growth, with positive consumer demand and strong leasing momentum.