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Highlights

  • At the end of June 2023, GPT’s assets under management were AUD 32.2 billion.
  • In 1HFY23, tenant demand was substantial under the logistics portfolio.
  • In the retail portfolio segment, high occupancy, fixed rental, and tenant demand is expected in full year 2023.

The GPT Group (ASX: GPT) is an ASX-listed diversified property group, which manages and owns a portfolio of retail, office, and logistics properties in Australia. GPT’s assets under management stood at AUD 32.2 billion at the end of the first half of the financial year 2023.

During the stated period, the retail portfolio of GPT delivered a strong performance with an occupancy of 99.5%. Moreover, the tenant demand during the period was significant under the logistics portfolio.

Net loss after tax dropped to AUD 1.1 million in 1HFY23, while the funds from operations (FFO) declined by 3% year-on-year (yoy) to AUD 316.7 million. The fall in FFO was driven by an increase in the cost of debt due to the rise in interest rates. Distribution during the period was 12.5 cents per share, compared to 12.7 cents per share in 1HFY22.

Top 10 shareholders of GPT

The top 10 shareholders of GPT have nearly 45.74% shareholding in the firm, while the top four have 31.78% stake in the firm. UniSuper Limited and Vanguard Investments Australia Ltd. have the maximum stake in the firm, with a shareholding of ~16.30% and ~6.37%, respectively.

Recent business update

Through an ASX filing dated 29 September 2023, the company informed that Anastasia Clarke has resigned from the position of GPT’s CFO as he has accepted the role of CFO at Charter Hall.

The company’s ASX update dated 25 September 2023 mentioned that Russell Proutt would join the firm as CEO and MD by 25 March 2024. Till then, the CEO’s role would be handled by Bob Johnston.

Outlook

For 2023, the company expects to deliver FFO per security of around 31.3 cents per share and register a distribution of 25 cents per share.

In the retail portfolio segment, high occupancy, fixed rental, and tenant demand is expected, while in the logistics portfolio, income growth is anticipated, backed by development completions and rental increases.

By the end of FY23, the company is targeting occupancy of around 90% in the office portfolio. 

Share performance of GPT    

GPT shares closed 2.14% up at AUD 3.82 apiece on 5 October 2023. With this, GPT’s stock price has declined by 5.21% in the past 12 months and has dropped by 9.05% in the past one month. The 52-week range of GPT is AUD 4.765 – 3.71 apiece.

Today’s closing price is nearly 3% higher than its 52-week low, which was recorded on 4 October 2023.

 

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

 

Note 2: The reference date for all price data, currency, is 05 October 2023. The reference data in this report has been partly sourced from REFINITIV.