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GPT Profits up 14.5% in strong market

February 15, 2019

 

The GPT Group delivered Net Profit After Tax of $1,451.7 million for the 12 months to 31 December 2018, an increase of 14.5 per cent on the prior corresponding period with FFO per security up by 3.5 per cent on pcp to 31.84 cents.

 

The Groups higher net profit was predominantly from a valuation increase of $910.7 million for the 12 months to 31 December, with the Office assets recording the largest gains.

 

After the end of the reporting period, the Group announced its intention to divest its 50 per cent interest in the MLC Centre in Sydney. The proceeds from the sale will initially be used to repay debt prior to being reinvested into the development pipeline, which includes the new 32 Smith Street office tower in Parramatta, and a planned new office tower at Melbourne Central.

 

The Office portfolio’s 5.8 per cent like-for-like income growth was driven by its 90 per cent weighting to the Sydney and Melbourne CBD office markets, which continued to outperform in the 12 months to 31 December. The portfolio recorded a valuation uplift of $598.5 million (or 11.2 per cent) for the year, with $485.0 million of the valuation gains occurring in Sydney

 

GPT also reported a growth in income and specialty sales productivity from their retail portfolio like-for-like income growth of 2.2 per cent for the year and specialty sales up 2.5 per cent on pcp to $11,460 per square metre.

 

The Logistics portfolio delivered like-for-like income growth of 2.8 per cent for the 12 months. At 31 December, occupancy was 97.2 per cent and the weighted average lease expiry (WALE) across the portfolio was 7.1 years.

 

At the end of the period, GPT had net gearing of 26.3 per cent and a debt maturity profile of 6.3 years.

 

Assets under management increased 5 per cent to $12.6 billion in the 12 months to 31 December, with the Funds Management business delivering a 11.3 per cent total return for the year. The GPT Wholesale Office Fund (GWOF) achieved a total return of 12.7 per cent for the period, while the GPT Wholesale Shopping Centre Fund (GWSCF) delivered a total return of 4.8 per cent.

 

Mr Johnston announced guidance of 4 per cent growth for both FFO per security and Distribution per security for FY19.

 

2018 Annual Financial Highlights

  • Net Profit After Tax of $1,451.7 million, up 14.5 per cent on the prior corresponding period (pcp)

  • Funds From Operations (FFO) of $574.6 million, resulting in FFO per security growth of 3.5 per cent

  • Total revaluation gains of $910.7 million, up 6.9 per cent

  • Distribution per security of 25.46 cents, up 3.5 per cent on pcp

  • Net Tangible Assets of $5.58 per security, up 10.7 per cent

  • Total Return of 15.8 per cent for the 12 months to 31 December

GPT provides the following guidance for FY19:

• FFO per security growth of 4 per cent; and

• Distribution per security growth of 4 per cent​

 

GPT Trading Chart vs ASX200 AREITs

Blue - GPT

Purple - ASX200 AREITs

 

 

 

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