The GPT Group (GPT) H2 2024 earnings summary

Executive summary

• Funds From Operations (FFO) reached $616.3 million (32.2c per security), up 2.6% year-over-year, with distributions of 24.0c per security and nearly 99% portfolio occupancy.

• Assets under management ended the year at $34.1 billion, with a diversified portfolio across retail, office, and logistics sectors.

• Statutory loss after tax was $200.7 million, mainly due to $770.7 million in investment property valuation declines.

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

• Strategic partnerships and acquisitions included a 50% interest in Cockburn Gateway and Belmont Forum, and the Perron partnership, adding ~$1 billion in AUM.

Financial highlights

• Adjusted Funds From Operations (AFFO) were $470.0 million, down 3.7% year-over-year due to higher maintenance and leasing CapEx.

• Net tangible assets per security at $5.27, down 6.1% year-over-year.

• Net gearing at 28.7%, within the 25%-35% target range, and liquidity of $1.1 billion.

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

• Management operations FFO up 13.6% to $88.3 million, driven by new mandates and platform expansion.

Outlook and guidance

• FY25 FFO expected between 32.5 and 33.1 cents per security, representing 1%-3% growth year-over-year.

• Distribution guidance for 2025 is 24.0 cents per security, within 95%-105% of free cash flow.

• 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.