For the 2014 financial year listed property manager, GPT Group (ASX: GPT), has recorded a healthy jump in revenue and profit thanks to its keen focus on costs and capital allocation.
In the year ended 31 December 2014 GPT Group notched up revenue of $1,066.8 million, up 21.9% over the prior year, and a net profit after tax, or NPAT, result of $645.3 million, up 12.9%.
The group grew earnings per security by 4.1% and achieved a 9.6% total return. Net tangible assets, or NTA, also grew 4% to $3.94 per security.
A distribution of 10.7 cents per share was declared for the second half, taking the total yearly payout to 21.2 cents per security, up 3.9% year over year.
GPT Managing Director and CEO, Michael Cameron, said, "The strong result we have delivered for FY14 and the outlook for FY15…is being driven by GPT's core portfolio of high quality assets, with over 90 per cent of the Group's income coming from rental income."
He added, "GPT completed more than $2.0 billion of asset transactions in FY14, lifting the quality and long term performance outlook for the portfolio. The Group is also well positioned to take advantage of the strengthening conditions in our key markets."
Mr Cameron said the group's simple and straightforward business has helped the company experience growth and will likely continue to do so in financial year 2015. He said the group was on track to achieve earnings per security growth of five per cent and that the group was targeting a total return of greater than nine per cent.
Is it time to buy GPT Group shares?
Despite today's promising result, GPT shares appear fairly priced. At 1.18 times net tangible assets any investors choosing to buy today wouldn't be getting a bargain. As such GPT shares are probably best left on your watchlist, for now.
