Why the GPT Group (ASX:GPT) share price is on the rise today

The GPT Group (ASX:GPT) share price is popping today following the release of the company’s annual results. Here’s a snapshot.

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GPT Group (ASX: GPT) shares are on the rise this morning following release of the company’s annual results. At the time of writing, the GPT share price has jumped 3.39% to $4.27.

Let’s take a look at what the company reported.

What’s driving the GPT share price?

The GPT share price is pushing higher today despite the fact the company reported funds from operations (FFO) of $554.7 million for the 12 months ended 31 December 2020, down 9.6% compared to the prior year.

The group recorded a statutory net loss after tax in 2020 of $213.1 million, compared to a statutory net profit after tax of $880 million in 2019. 

However, operating net income was $280.2 million, up 1.8 % compared to 2019.

GPT reported an investment portfolio totalling $24.4 billion in assets under management (AUM) for the annual period.

The company’s property portfolio is presently 98.4% occupied, and 2020 rent collections totalled $95.3 million.

Despite the impacts of coronavirus, GPT Group collected 94% of net billings during the period.

The group’s property portfolio valuation dropped 4.8% compared to the previous year, based on an independent revaluation as at 30 December 2020.

GPT noted that its logistics portfolio has grown from $1.9 billion to $3 billion over the past two years. The company also advised it has increased capital allocation to logistics, which is now 21% of group assets.

The property investor reported liquidity of $1.8 billion which it claims fully funds current commitments through to 2024.

Outlook

Looking ahead, GPT intends to continue growing its logistics portfolio via acquisition and development. GPT has additional plans to expand its funds management platform further.

The company will progress its development pipeline opportunities throughout the year in response to changing market conditions.

Given the continued uncertainty in the business environment caused by the pandemic, no 2021 earnings or distribution guidance was provided. However, GPT expects to deliver 2021 earnings and distribution guidance with its March 2021 quarterly update.

A share buy-back program has been announced for up to 5% of securities on issue as GPT maintains its capacity to invest in strategic growth opportunities.

Company snapshot

GPT is a property investment company which owns and manages a portfolio of Australian retail, office and logistics property assets.

The company also manages three funds, the GPT Wholesale Office Fund (GWOF), the GPT Wholesale Shopping Centre Fund (GWSCF) and the GPT Metro Office Fund (GMF).

Over the past 12 months, GPT Group shares have fallen by more than 32%. Based on the current GPT share price, the company commands a market capitalisation of around $8 billion.

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Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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