The GPT Group (GPT) H2 2024 earnings summary

Executive summary

• Achieved FY24 FFO of AUD 616.3 million, up 2.6% year-over-year, with FFO per security at 32.2c and distribution per security at 24.0c; nearly 99% portfolio occupancy and strong retail/logistics performance.

• Statutory loss after tax narrowed to $(200.7)m from $(240.0)m in 2023, mainly due to asset revaluations.

• Assets under management reached AUD 34.1 billion, with a diversified portfolio across retail, office, and logistics.

• Strategic recalibration included resource reallocation to growth areas, refined incentives, and increased employee ownership.

• High occupancy rates and disciplined capital management underpin stable earnings.

Financial highlights

• FFO increased 2.6% to AUD 616 million, with management operations FFO up 13.6% to AUD 88.3 million and co-investment earnings 12.8%.

• Retail like-for-like net property income grew 4.9%, office 1.9%, and logistics 5.6%.

• AFFO was AUD 470 million, down 3.7% year-over-year, due to higher CapEx.

• Trading profits of AUD 24.2 million in 2024, expected to halve in 2025.

• Corporate costs reduced by 4% year-over-year, mainly from IT restructuring and delayed hires.

Outlook and guidance

• FY25 FFO guidance is 32.5–33.1c per security (1–3% growth), with distribution maintained at 24.0c per security.

• Distribution policy to remain at 95%-105% of free cash flow until a material business shift.

• Trading profits expected to be less than 2% of FFO over the long term.

• Elevated CapEx expected in 2025 and likely in 2026 due to office leasing cycles.

• Focus on leveraging a high-quality, diversified portfolio and disciplined capital management for sustainable earnings growth.