Garda Property Group (ASX:GDF) Agrees A$300m Charter Hall Sale and Lifts FY27 Guidance

Sonal Goyal

22 October 2026 12:11 PM AEDT

Garda Property Group (ASX:GDF) Agrees A$300m Charter Hall Sale and Lifts FY27 Guidance

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Key Highlights

A Charter Hall managed fund will acquire Garda's seven remaining investment properties for $300.0 million under unconditional contracts.
Gross proceeds of $350.8 million across nine properties will repay the syndicated debt facility drawn to $185.3 million and leave about $176.6 million of cash.
Pro forma gearing is 0% and NTA per security is $1.56.
FY27 FFO guidance rises from 10.5 to 12.5 cents per security and distribution guidance from 9.0 to 12.5 cents.

Garda Property Group (ASX:GDF) has executed unconditional contracts to sell its seven remaining investment properties to a Charter Hall managed fund for $300.0 million. The agreement follows the sales of the Heathwood and Pinkenba properties, announced on 29 and 28 September respectively, which brought in a further $50.8 million.

Taken together, the transactions cover all nine of Garda's investment properties and carry gross sale proceeds of $350.8 million. Settlement of the full portfolio is expected between November 2026 and March 2027, and the group has revised its FY27 guidance to reflect the new capital position.

The Sale Transactions and Settlement Timetable

The properties sold to the Charter Hall fund are the two Acacia Ridge holdings at 38 and 69 Peterkin, Berrinba, Richlands, Wacol Volvo, Wacol Pinnacle West and Morningside. Heathwood was sold to The Landrich Trust for $17.5 million and Pinkenba to 2MB Co Pty Ltd for $33.3 million.

Six of the Charter Hall properties and Heathwood are unconditional with expected settlement on 20 November 2026. Pinkenba is also unconditional, with settlement expected on 22 January 2027. Morningside, sold for $80.7 million, remains subject to due diligence and is expected to settle around March 2027. The Acacia Ridge pair together carried gross proceeds of $68.5 million, Richlands $37.9 million, Wacol Volvo $51.8 million, Wacol Pinnacle West $44.0 million and Berrinba $17.1 million.

Total carrying value of the nine properties was $355.9 million, so the sale price represents a nominal discount of 1.4% to underlying carrying value and NTA.

Debt Repayment and the Cash Position

Garda expects to repay in full the syndicated debt facility, which is currently drawn to $185.3 million, and to finish with pro forma gearing of 0%. The calculation of net cash for investment begins with group cash of $25.2 million at 30 September 2026 and adds net sale proceeds of $50.2 million from Heathwood and Pinkenba and gross proceeds of $300.0 million from the Charter Hall transaction. The table of settlement proceeds is based on the settlement profile and on estimated transaction adjustments.

Deductions then apply for remaining incentives of $7.0 million, a Morningside rent guarantee of $4.1 million, other adjustments of $1.5 million and the debt facility repayment of $186.0 million. The result is net cash for investment of $176.6 million after settlements.

Investable capital is approximately $321.0 million, made up of $144.4 million of existing loan receivable assets and $176.6 million of new lending capacity. NTA per security is $1.56, against an ASX close of $1.025 per security on 20 October 2026.

Lending Focus and Upgraded Guidance

Garda stated that surplus investable capital is likely to be allocated to lending activities for the foreseeable future, consistent with previously announced investment priorities. Chairman Matthew Madsen said real estate lending is expected to be the primary deployment focus in the medium term, while the group expects to own real property again when prospective returns are compelling for the risk assumed and the cost of capital.

FY27 FFO guidance has been raised by 19%, from 10.5 cents to 12.5 cents per security, and distribution guidance by 39%, from 9.0 cents to 12.5 cents per security. Because distributions will no longer include tax-advantaged income from property tax depreciation benefits, Garda intends to distribute substantially all of its FFO, targeting a payout ratio of approximately 100%. Guidance depends on the transactions completing broadly in line with the anticipated timetable.

The group described its approach as that of an allocator of capital into real estate, not restricted to either ownership or lending, and it set out a per-security focus that aims to generate increasing distributions over the long term.

Where the Numbers Leave Garda

ASX has advised in principle that the transactions, which together amount to a significant change to the scale of Garda's activities under Listing Rule 11.1, do not require securityholder approval. Measured against FY26 audited figures, total consolidated assets fall from $500.6 million to $336.0 million, annual revenue from $49.0 million to $20.9 million, EBITDA from $27.1 million to $16.0 million and annual profit before tax from $24.5 million to $7.9 million.

Total securities on issue remain at 217,573,022, and total equity interests move only from $329.9 million to $326.7 million, a change of 1.0%.

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