GPT Group (ASX:GPT) Announces 2024 Annual Results
Financial Highlights
GPT Group (ASX: GPT) reported Funds from Operations (FFO) of $616.3 million or 32.2 cents per security and Adjusted Funds from Operations (AFFO) of $470.0 million with a full-year distribution of 24.0 cents per security. The statutory loss after tax was $200.7 million, including investment property valuation declines of $770.7 million. Net tangible assets per security stood at $5.27, with gearing of 28.7% within the target range of 25% to 35% and liquidity of $1.1 billion.
Operational Highlights
The Group finalised key executive appointments, including Merran Edwards as CFO, Mark Harrison as CIO, and Matthew Brown as Head of Office. Investment portfolio occupancy reached 98.6%, and assets under management totalled $34.1 billion. Notable developments include the approval of the GPT Wholesale Shopping Centre Fund (GWSCF) modernisation and the acquisition of a 50% interest in Cockburn Gateway and Belmont Forum for approximately $482 million. The Rouse Hill Town Centre expansion, a ~$200 million project, is set to commence in the first half of 2025.
Capital Management
GPT completed $4.5 billion in new and refinanced debt facilities, resulting in a weighted average debt term of 5.1 years and a weighted average cost of debt of 5.0%. The Group maintains a net gearing of 28.7% and $1.1 billion of available liquidity. GPT holds A- and A2 credit ratings from S&P and Moody’s.
Distribution and Guidance
The Board declared a distribution of 12.0 cents per security for the six months to 31 December 2024, payable on 28 February 2025. For 2025, GPT expects to deliver FFO of between 32.5 and 33.1 cents per security and a distribution of 24.0 cents per security.
Executive Comments
GPT’s Chief Executive Officer, Russell Proutt, said: “2024 has been a year of successful operational improvement and delivery. In particular, it’s pleasing to see the significant lift in occupancy across the office portfolio. Coupled with the strong retail and logistics operational performance, this sets up the group for future earnings growth.”
“During the year we embarked on a strategy to prioritise the growth of our investment management business to enhance return on capital. We have had strong initial success as evidenced by the establishment of the Perron Group partnership and the GWSCF modernisation. While it is early days, we continue to see significant opportunities for future growth and believe the changes made to the platform will drive earnings growth in the years ahead.”
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