The GPT Group (ASX: GPT) share price is in focus today after the company posted a statutory net profit after tax of $329.1 million for the half and declared an interim distribution of 12.0 cents per security.
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What did GPT Group report?
- Funds from operations (FFO) of $322.6 million, or 16.8 cents per security
- Adjusted funds from operations (AFFO) of $257.4 million
- Statutory net profit after tax of $329.1 million
- Interim distribution of 12.0 cents per security
- Investment portfolio valuation uplift of $48.3 million
- Net tangible assets per security of $5.31 and net gearing at 30.7%
What else happened in the half year?
GPT maintained strong portfolio metrics, with occupancy at 98.5% and assets under management increasing to $36.6 billion. Gross transactions totalling around $2.3 billion were completed, showing ongoing asset recycling and development activity.
The retail portfolio performed well, with occupancy at 99.7% and like-for-like net property income growth of 5.6%. Major projects included the $200 million expansion of Rouse Hill Town Centre and progress on new logistics developments. GPT also announced the launch of a new $1 billion logistics partnership, GQLT2.
What did GPT Group management say?
Commenting on the result, CEO Russell Proutt said:
Our success in the half has been built on the strong operational performance at the asset level, a testament to the quality of our portfolio and ability of our people to drive earnings. We continue to focus on our investment management strategy and have added significantly to our depth of capability in areas including research, corporate development and investor engagement. Looking forward, our ambition and strategy is unchanged and we are focused on delivering long-term value to our stakeholders.
What's next for GPT Group?
Looking ahead, GPT expects to deliver 2025 full-year funds from operations of no less than 33.2 cents per security, which represents at least 3% growth on the prior year. Management is also targeting a full-year distribution of 24.0 cents per security and continuing with its development pipeline and new partnership roll-outs.
The Group highlighted its strong balance sheet, ongoing asset redevelopments, and partnerships as key to ongoing value creation for security holders. Major projects, such as the Rouse Hill Town Centre expansion and further logistics developments, are set to support medium-term growth.
GPT Group share price snapshot
Over the past 12 months, GPT Group shares have slightly trailed the market, rising 11% compared to 12% for the S&P/ASX 200 Index (ASX: XJO).
