Highlights

• Funds from operations rose 5.0% to $338.8 million, or 17.7 cents per security, alongside a 12.25 cent distribution.

• Statutory net profit after tax climbed 21.6% to $400.1 million while net tangible assets reached $5.61 per security.

• GPT opened its $555 million 51 Flinders Lane office in Melbourne, with Firmus, JCDecaux and AirTrunk among its tenants.

• Net gearing sits at 31.5%, within the 25-35% target range, with $1.0 billion of liquidity and no unfunded commitments.

A $555 million office building in Melbourne's East End opened on 3 September 2026, just over two weeks after GPT Group (ASX:GPT) reported a half-year in which funds from operations grew 5.0%. Shares were trading at A$4.75 on 23 October 2026, up 1.50%.

Earnings Rise, and Profit Rises Faster, With Gearing in Range

For the half-year ended 30 June 2026, GPT reported funds from operations of $338.8 million, or 17.7 cents per security. Excluding trading profits, growth was 8.3%.

Statutory net profit after tax rose 21.6% to $400.1 million. Net tangible assets increased 1.4% to $5.61 per security. The group declared a distribution of 12.25 cents per security for the half.

Net gearing was 31.5%, inside the 25% to 35% target range, and liquidity stood at $1.0 billion with no unfunded commitments. The weighted average cost of debt fell 34 basis points to 5.0%.

Full Shopping Centres, a Recovering Office Book

Group assets under management reached $41.6 billion, up $1.8 billion from December 2025. The $16.3 billion investment portfolio was 97.6% occupied, with like-for-like net property income growth of 5.8%.

Retail led on occupancy at 99.8%, with like-for-like income growth of 4.6% and leasing spreads of 6.6%. Office occupancy was 92.1%, or 94.3% excluding Grosvenor, while like-for-like income grew 8.0%. Logistics was 98.9% occupied with like-for-like growth of 4.0%.

Transactions totalled about $1.7 billion gross. Acquisitions of $1.2 billion included 50% stakes in Sunshine Plaza for $622 million and Macarthur Square for $568 million, both for GWSCF. Divestments of $0.4 billion included 750 Collins Street at roughly $383 million.

A New East End Address Fills With Tenants

At 51 Flinders Lane, GPT said the development offers about 27,500 square metres of A-Grade office space across a 14-level North Tower and a 39-level South Tower, plus 1,000 square metres of hospitality amenity. It holds WiredScore Platinum certification.

Firmus Technologies took a full floor on Level 14, its first Melbourne office. JCDecaux signed a 10-year lease for a full floor on Level 9, relocating from St Kilda Road. AirTrunk also opened its first Melbourne office in the building. At the interim result, the building was 39% committed.

GPT also reported that Insignia Financial committed to a 10-year lease of 8,400 square metres at neighbouring 8 Exhibition Street, which will connect to 51 Flinders Lane through a new laneway.

Guidance and the Projects Still to Deliver

The company expects FY26 funds from operations of about 35.4 cents per security, roughly 4% growth on FY25, or about 5.7% excluding trading profits. It expects an FY26 distribution of 24.5 cents per security. Guidance assumes no unforeseen circumstances.

Projects underway total $605 million. The Rouse Hill Town Centre expansion is fully leased and expected to complete in the fourth quarter of 2026, while two of three facilities at the Kemps Creek logistics estate are leased, with completion expected in the second half of 2026. The roughly $170 million Melbourne Central expansion is under construction, with completion expected in the first half of 2028.