Rental growth across three property sectors is helping GPT Group defend its Earnings outlook, even as office leasing remains uneven. GPT Group (ASX:GPT) reported A$338.8 million in first-half funds from operations and retained its full-year guidance, placing the focus on how retail, logistics and office Assets perform through the remainder of 2026.

The Latest Development

GPT reported Funds From Operations (FFO) of A$338.8 million, or 17.7 cents per security, for the six months to 30 June 2026. FFO is a property-sector earnings measure that strips out items such as revaluations; it is not a statutory profit figure. Adjusted FFO, which deducts maintenance Capital Expenditure and leasing incentives, was A$263.4 million.

Statutory net profit after tax was A$400.1 million. The interim distribution was 12.25 cents per security.

The company kept its full-year guidance unchanged from February: FFO of about 35.4 cents per security and a distribution of 24.5 cents, “barring unforeseen circumstances”. GPT says that FFO guidance implies roughly 4% growth on 2025, or about 5.7% excluding trading profits. Guidance is a company forecast, not a certainty.

A three-sector earnings engine

GPT owns and manages retail centres, offices and logistics assets, both directly and through funds management partnerships. Group assets under management stood at A$41.6 billion at 30 June 2026, up A$1.8 billion, or 4.6%, from 31 December 2025.

Like-for-like net property income growth in the half, was:

Retail: 4.6%, with total centre sales up 3.5%.

Retail and logistics: strong leasing

In retail, GPT completed 232 specialty leasing deals at average spreads of 6.6%, with an average Lease term of 5.1 years. Development continues: the Rouse Hill Town Centre expansion is due for completion in late 2026, and construction has begun on a roughly A$170 million Melbourne Central expansion.

Logistics leasing covered 100,400 square metres at spreads of 38%, the highest of the three sectors, and an average term of 5.7 years. The company cites a development pipeline of about A$3 billion across logistics, including partnerships and mandates, with three Kemps Creek facilities in New South Wales due to complete in the second half of 2026.

Large spreads reflect rents on renewing leases moving well above previous levels. They do not, on their own, indicate how fast market rents will grow from here.

Office: the weakest link

Office is the segment that most clearly separates GPT’s results from its headline numbers. The company leased 78,600 square metres across 71 deals, with spreads of 4.7%, but gross incentives averaged around 33%. Incentives are inducements given to tenants and effectively reduce the cash rent a landlord receives.

Risks and what to watch

Interest rates and Capitalisation rates: valuations and borrowing costs both respond to rate expectations, and GPT’s Debt cost is 5.0%.