The GPT Group (GPT) H1 2024 earnings summary

Executive summary

• Funds From Operations (FFO) for H1 2024 was $309.1 million (16.14 cents per security), with Adjusted FFO at $258.4 million and a net loss after tax of $249.4 million due to investment property valuation declines of $566.8 million.

• Assets under management reached $34.4 billion, with growth in mandates and partnerships and a diversified portfolio across retail, office, logistics, and living sectors.

• Interim distribution declared at 12.0 cents per security, with payment scheduled for 30 August 2024.

• Strategic focus on operational excellence, capital alignment, sustainable growth, and leveraging partnerships for higher returns.

• Executive team changes included new CEO, CFO, and CIO appointments in 2024.

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.

• Net tangible assets per security dropped to $5.36; total assets decreased 2.9% to $15.8 billion; net assets fell 4.5% to $10.3 billion.

• Gearing at 29.6%, within the 25%-35% target range; liquidity at period end was $1.4 billion.

• Weighted average cost of debt was 4.9%, with 99% of drawn debt hedged for 2024; weighted average debt term was 5.6 years.

• Interest cover ratio for H1 2024 was 4.1x, well above the 2.0x covenant; credit ratings maintained at A- (S&P) and A2 (Moody's).

Outlook and guidance

• Full year 2024 FFO guidance reaffirmed at approximately 32.0 cents per security; distribution guidance maintained at 24.0 cents per security.

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

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

• Optimism for continued strong retail and logistics performance, with positive leasing and sales trends.

• Market conditions improving for transaction activity and capital mobility.