The GPT Group (GPT) H2 2024 earnings summary

Executive summary

• Achieved FY24 FFO of AUD 616 million (32.2c per security), up 2.6%, and distribution of 24.0c per security, with nearly 99% portfolio occupancy and 4% like-for-like property income growth.

• Assets under management reached AUD 34.1 billion, with strong foundations across retail, office, and logistics sectors.

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

• Statutory loss after tax was $(200.7)m, an improvement from $(240.0)m in 2023.

• High occupancy rates and a diversified, premium-quality portfolio underpin stable earnings.

Financial highlights

• Net gearing at 28.7%, within the 25%-35% target range, with liquidity of AUD 1.1 billion and a 5.1-year debt maturity profile.

• Like-for-like Net Property Income growth: Retail +4.9%, Office +1.9%, Logistics +5.6%.

• AFFO down 4% year-over-year due to higher maintenance and leasing CapEx.

• Trading profits of AUD 24 million in 2024, expected to halve in 2025.

• NTA per security at $5.27, down 6.1% year-over-year.

Outlook and guidance

• FY25 FFO expected between 32.5c and 33.1c per security, 1%-3% above FY24, with distribution maintained at 24.0c per security.

• 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.

• Premium, diversified portfolio and disciplined capital management expected to support sustainable earnings growth.