Highlights

  • Funds from operations reached A$338.8 million, or 17.7 cents per security, for the first half of 2026.
  • Like-for-like net property income increased across retail, office and logistics, with office showing the highest growth.
  • Portfolio occupancy was 97.6%, while group Assets under management increased to A$41.6 billion.
  • Full-year 2026 guidance remained about 35.4 cents of FFO per security with a 24.5 cent distribution target.
  • Debt costs, office vacancy, development execution and property valuations remain key second-half variables.

GPT Group (ASX:GPT) is an Australian real estate Investment trust that owns and manages retail, office and logistics assets while also earning fees through its funds management platform. The 2026 interim result showed growth across all three property segments as leasing and portfolio income improved.

Interim Earnings and Portfolio Performance

For the six months to 30 June 2026, GPT reported FFO of A$338.8 million, equivalent to 17.7 cents per security. Statutory net profit after tax was A$400.1 million and included a A$45.0 million uplift in investment portfolio values. Like-for-like net property income rose 5.8%, while group assets under management increased to A$41.6 billion. Overall portfolio occupancy was 97.6%.

Retail, Office and Logistics

Retail occupancy remained high at 99.8%, with like-for-like net property income growth of 4.6%. GPT completed 232 specialty leases with positive spreads, while specialty sales productivity was A$14,062 per square metre. Office occupancy was lower at 92.1%, but like-for-like income increased 8.0%. The group leased 78,600 square metres across 71 office deals, indicating improved leasing activity even though vacancy remained a constraint.

Logistics occupancy was 98.9% and like-for-like income rose 4.0%. GPT leased 100,400 square metres at high average spreads as older leases reset to current market rents. Each segment remains exposed to different Demand drivers, including consumer spending, office demand and industrial rental conditions.

Guidance, Capital and Development

For the full year to 31 December 2026, GPT maintained guidance for about 35.4 cents of FFO per security and a 24.5 cent distribution. The interim distribution was 12.25 cents. Adjusted FFO, which deducts recurring Capital Expenditure and leasing incentives, was A$263.4 million. Net gearing was 31.5%, available Liquidity was A$1.0 billion and the weighted average cost of Debt was 5.0% with an average term of 4.4 years.

The funds management platform also expanded. GPT's wholesale shopping centre fund completed a A$697 million Equity raising and secured a A$700 million term loan. The development pipeline was about A$3 billion, including the Rouse Hill Town Centre and Melbourne Central expansions. These projects also introduce construction, leasing and timing risk.

Risks and Execution Priorities

Office vacancy remains one of the clearest risks, with occupancy below retail and logistics. Higher borrowing costs can reduce FFO, while property values can move with interest rates and transaction evidence. Development projects carry execution risk, while logistics leasing spreads may moderate as older leases reset. Fund management earnings also depend on investor appetite.

Key Insights

GPT entered the second half of 2026 with income growth across all major property segments, high overall occupancy and maintained full-year guidance. The key question is whether office leasing momentum can continue while debt costs remain elevated. Development delivery and the funds platform will also influence earnings beyond 2026.