Charlestown Square
Charlestown Square in NSW; owned and operated by GPT. Photo – Charlestown Square website.
  • Funds from operations per security had estimated growth of 8%
  • Logistics portfolio had occupancies of 96.8% following recent lease expiries
  • Retail gradually recovered, but hampered by Melbourne figures and cinemas

Quarterly reports are gradually being released over the coming weeks, previously The Property Tribune reported on the quarterly reports of The Agency (ASX: AU1), Cedar Woods (ASX: CWP), Acumentis (ASX: ACU), and McGrath (ASX: MEA).

GPT Group (ASX: GPT)

Focussing on Australian retail, office, and logistics property assets, GPT released its quarterly update today.

In its previous annual report, it saw returns down 2.4%. More recently, the company announced earnings and distributions guidance, stating funds from operations per security had estimated growth of 8%.

The diverse portfolio has paid dividends, said GPT Chief Executive Officer, Bob Johnston, logistics a particularly strong part of the business as demand remains high. Office and retail have gradually built momentum as the sectors continue recovering from the impacts of last year, however, Mr Johnston said there Melbourne was an exception:

“With the exception of Melbourne Central, our retail assets have seen foot traffic return to approximately 95% of pre-COVID-19 levels… the return of workers and visitors to the Melbourne CBD remains well below historical levels and as a result the recovery of Melbourne Central continues to lag the balance of our portfolio.”

Bob Johnston, Chief Executive Officer, GPT Group

The GPT logistics portfolio saw occupancies of 96.8% following recent lease expiries, occupancies were 99.8% as of 31 December 2020, retail is 91.9% which includes 32 Smith in Parramatta which “reached practical completion in January 2021”; the property is 72% committed including terms agreed; another office property in Melbourne is 26% committed and expects practical completion in May this year.

Retail was a mixed bag, specialty stores growth was up 12.4% for the quarter, general retail up 25.5%, leisure 20.3% and fashion and footwear also up, 17.7%. Cinemas saw a drop of 53.7%, the company said that was due to  “lack of new product releases”.

Other areas to see drops in growth were supermarkets (4.9%), and food retail (8.2%).

Company rent collection has been strong, the company said it has collected 105% of net billings, the breakup indicated office was 101%, and logistics 100%. Retail collections included 110% of net billings.

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