The GPT Group (GPT) H1 2025 earnings summary

Executive summary

• Funds from operations (FFO) rose 4.4% year-over-year to $322.6 million, or 16.8 cents per security, with statutory net profit after tax of $329.1 million, reversing last year's loss.

• Assets under management increased by $2.2 billion to $36.6 billion, driven by valuation gains and new retail asset additions.

• Portfolio occupancy remained high at 98.5%, with NTA per security rising to $5.31 from $5.27.

• Interim distribution was 12.0 cents per security, totaling $229.9 million.

• Strategic partnership with QuadReal and onboarding of five shopping centers worth $5 billion further strengthened the platform.

Financial highlights

• Like-for-like net property income growth: Retail 5.6%, Office 6.5%, Logistics 5.0%.

• Adjusted funds from operations (AFFO) were $257.4 million, stable year-over-year.

• Net tangible assets per security increased to $5.31.

• Net gearing at 30.7%, within the 25%-35% target range, reducing to 28.8% post-transactions.

• Weighted average cost of debt increased to 5.4%, with 80% hedged.

Outlook and guidance

• Upgraded 2025 FFO guidance to no less than 33.2 cents per security, at least 3% growth over 2024, and distribution of 24.0 cents per security.

• Expectation of continued strong sector performance, with positive momentum in earnings and cash flow into 2026.

• CapEx for 2025 expected at $160-$170 million, skewed to the second half.

• Management expects continued modest economic growth, stabilizing valuations, and improved investment activity, supported by forecast interest rate cuts.