Image: Canva.
  • NPAT of $529.7 million
  • FFO moved up to $326.5 million for the half
  • NTA $6.26, up from $6.09 in December 2021

GPT Group (ASX: GPT) has announced its half-year results for the six months to 30 June 2022.

The company recorded just under $530 million in NPAT, with FFO moving up from the prior corresponding period to $326.5 million.

GPT’s CEO, Bob Johnston, said the company has done well amidst challenging conditions:

“The Group delivered a solid result in the half, despite the ongoing impacts of the global COVID-19 pandemic and the uncertain economic environment driven by high inflation and rising interest rates. All three business segments reported increased Funds From Operations on the prior corresponding period.

“Notwithstanding the effects of COVID-19, our Retail portfolio continued to perform well with retail sales recovering to levels above 2019 pre-pandemic levels across most of our assets. Strong leasing outcomes have resulted in retaining high portfolio occupancy and leasing spreads continued to improve.

“Melbourne Central is benefiting from a return of students and tourists and there is a gradual return of CBD workers resulting in sales across most categories being close to pre-pandemic levels in the month of June.

“Leasing activity across the Office portfolio improved in the June quarter, with 51,900sqm of space being leased or under heads of agreement during the first half. The sub 1,000sqm tenant market remains most active although more recently there has been increased levels of enquiry from mid-size and larger tenants.

“The Office portfolio occupancy remains in line with December 2021 and management expects to continue to attract tenants through its active leasing strategies including premium fitted-out space and flexible work space offerings.

“Ongoing structural tailwinds in the logistics sector saw continued momentum in tenant demand, driving vacancy rates lower and resulting in strong market rental growth. Our Logistics portfolio maintained high occupancy and we continue to make good progress with the build out of our development pipeline and our partnership with QuadReal.”

June 2022 June 2021
Net profit after tax $529.7 million $760.5 million
Funds from operations $326.5 million $302.3 million
FFO per security 17.04 cents 15.64 cents
Interim distribution 12.7 cents 13.3 cents
Net tangible assets $6.26 $6.09 (December 2021)

Source: GPT Group.

Retail, Office, and Logistics

GPT’s retail portfolio saw a net revaluation uplift of $97.3 million or 1.8% in the six months to 30 June 2022, with a weighted average capitalisation rate (WACR) of 4.98%, December 2021 the WACR was 5.03%.

The Group’s retail occupancy was also high at 99.3%, up from December 2021 when occupancy was recorded at 99.1%. GPT said there was strong leasing activity during the half, with 405 lease deals being achieved during the period. Deals had an average annual rental increase of 4.4% and an average lease term of 4.6 years.

GPT’s office portfolio saw a net revaluation uplift of $6.8 million or 0.1% in the six months to 30 June 2022; WACR remained stable at 4.77%.

Occupancy for GPT’s $6.2billion portfolio was 92.0% at 30 June 2022, with a weighted average lease expiry (WALE) of 4.7 years. During the half, 28,300 sqm of signed leases were achieved, with an additional 23,600 sqm of terms agreed.

Net revaluation uplift $97.3 million 1.80%
June 22 December 21
WACR 4.98% 5.03%
Occupancy 99.3% 99.1%
Net revaluation uplift $6.8 million 0.1%
June 22 December 21
WACR Stable 4.77%
Occupancy 92%
WALE 4.7 years
Net revaluation uplift $115.4 million 2.6%
June 22 December 21
WACR 4.09% 4.11%
Occupancy 98.7%
WALE 6.2 years

Source: GPT Group.

GPT’s logistics portfolio saw net revaluations of $115.4 million, a 2.6% uplift. GPT said this was largely driven by leasing outcomes achieved and higher market rents.

The company said it had significant leasing activity for the half, with 149,700sqm of signed leases and 78,200sqm of Heads of Agreement in place. Logistics occupancy was 98.7% at 30 June 2022 and the portfolio has a WALE of 6.2 years.

The company opened trading today at $4.45, and at the time of writing was trading at $4.56.

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