Highlights

  • North Lakes asset settlement lifts liquidity and reduces drawn debt to AUD 95 million.
  • Portfolio transitions fully to Brisbane industrial properties valued at AUD 330 million.
  • Debt facility extended to 2029 with reduced average bank funding costs.

Garda Property Group (ASX:GDF) has confirmed the settlement of its AUD 113.6 million North Lakes asset sale, marking a key step in its ongoing portfolio refinement. The 25-hectare industrial-zoned land parcel, originally acquired in June 2021 for AUD 16.0 million, was part of the Group’s develop-to-own strategy.

Since acquisition, approximately AUD 41.2 million was invested in bulk earthworks, civil works and additional holding costs. The divestment has delivered a total unlevered return of 99%, equating to AUD 56.4 million or 28 cents per security based on company disclosures.

Following the sale, net proceeds have reduced the Group’s drawn debt to AUD 95 million, lowering gearing to 17.9%. Garda noted that this transaction provides around AUD 71 million in additional debt capacity that may be applied toward selective opportunities within its private lending operations.

Industrial Real Estate Portfolio Now Fully Brisbane-Based

With the North Lakes transaction completed, Garda’s real estate portfolio is now entirely weighted toward Brisbane industrial assets. The portfolio includes nine properties with a combined valuation of AUD 330 million, largely delivered through the Group’s develop-to-own approach.

The weighted average capitalisation rate currently stands at 5.86%, supported by a weighted average lease expiry of 4.5 years. Alongside property holdings, Garda continues to expand its private lending activities, particularly in residential and industrial development markets across South-East Queensland.

Debt Facility Extension Strengthens Funding Visibility

The Group has secured an extension of its syndicated debt facility with its existing lenders, ANZ and Westpac. Key terms include:

  • Tenor: Extended three years to September 2029
  • Facility Limit: Adjusted to AUD 166 million following recent asset sales
  • Pricing: Average bank cost reduced by 25 basis points

According to Garda, these changes support the Group’s ability to maintain financial flexibility while continuing its lending operations.

Distributions and NTA Position

Garda’s distribution guidance remains at 8 cents per security, equivalent to a 90% payout ratio. Based on the closing price of AUD 1.13 on 18 November 2025, this represents a yield of 7.1%.

The Group’s securities are trading at a 29% discount to a reported net tangible asset value (NTA) of AUD 1.60 per security, reflecting an implied portfolio capitalisation rate of 7.95% compared with the portfolio’s WACR of 5.86%.

Share Price Snapshot

GDF was trading 1.76% higher at AUD 1.150 per share as of 19 November 2025.