Key Highlights

  • Garda Property Group (ASX:GDF) shares were up 9.76% at $1.13 during the 22 October 2026 session, against a 0.64% decline in the S&P/ASX 200.
  • In an announcement dated 21 October 2026, Garda said a Charter Hall fund will acquire its seven remaining investment properties for $300.0 million.
  • Gross proceeds of $350.8 million across nine properties are expected to repay all debt and leave about $176.6 million of cash, with FY27 distribution guidance of 12.5 cents per security.

Garda Property Group (ASX:GDF) shares were up 9.76% at $1.13 during the trading session on 22 October 2026, based on data at 11:55 am. At the same time the S&P/ASX 200 stood at 8,774.90, down 0.64% (56.40 points), while the All Ordinaries stood at 8,897.80, down 0.66%. Garda is a Brisbane-based stapled property group that has owned industrial properties in Queensland and is now repositioning towards real estate lending.

About the Company

Garda Property Group is listed on the Australian Securities Exchange under the code GDF and operates as a stapled group, with its figures reported on a consolidated basis across the entities within the group. Its head office is at Level 21, 12 Creek Street, Brisbane, Queensland.

The group's investment properties are located in the greater Brisbane area, with sites at Heathwood, Acacia Ridge, Berrinba, Richlands, Wacol, Pinkenba and Morningside. Matthew Madsen serves as Executive Chairman.

Business Overview

Garda describes itself as an allocator of capital into real estate, unrestricted by whether exposure takes the form of ownership or lending. Its balance sheet has been anchored by nine investment properties, financed partly through a syndicated debt facility drawn to $185.3 million.

It also holds loan receivable assets of $144.4 million. In its FY26 audited accounts, total consolidated assets were $500.6 million, revenue was $49.0 million and profit before tax was $24.5 million.

Portfolio Sale Transactions

In its announcement dated 21 October 2026, Garda said it had executed unconditional contracts to divest its seven remaining investment properties to a Charter Hall managed fund for $300.0 million. The transaction follows the earlier sales of the Pinkenba and Heathwood properties, announced on 28 and 29 September, which together total $50.8 million.

Gross proceeds across all nine properties total $350.8 million, compared with an aggregate carrying value of $355.9 million, which Garda describes as a nominal 1.4% discount to carrying value and net tangible assets (NTA). Settlement of the Heathwood and six of the Charter Hall properties is scheduled for 20 November 2026, Pinkenba for 22 January 2027, and Morningside, which remains subject to due diligence, for around March 2027.

Use of Proceeds and Capital Position

Garda anticipates that proceeds will fully repay the syndicated debt facility, leaving pro forma gearing of 0%. Net cash for investment after settlements is put at $176.6 million, which, combined with the existing loan receivables, gives investable capital of about $321.0 million.

The group reported NTA per security of $1.56, which it said represented a 52% premium to the ASX price of $1.025 per security on 20 October 2026, and said securities were trading at a 38% discount to NTA. Surplus capital is expected to be directed to lending activities for the foreseeable future, while retaining the capability to own or develop property.

FY27 Guidance and Listing Rule Position

Garda upgraded its FY27 funds from operations (FFO) guidance by 19%, from 10.5 cents to 12.5 cents per security, and lifted distribution guidance by 39%, from 9.0 cents to 12.5 cents per security. It intends to distribute substantially all of its FFO, targeting a payout ratio of about 100%.

The transactions together constitute a significant change to the scale of Garda's activities under ASX Listing Rule 11.1. The group received in-principle ASX advice that securityholder approval is not required. Measured against FY26, they would reduce total consolidated assets by 32.9% and revenue by 57.3%.

Related Sector Context

Listed property trusts hold income-producing real estate and are sensitive to the relationship between property capitalisation rates, government bond yields and funding costs. Garda notes that spreads between industrial capitalisation rates, bond yields and funding costs have narrowed.

Against that backdrop, the S&P/ASX 200 was down 0.64% and the All Ordinaries down 0.66% at 11:55 am, so Garda's move higher ran against both benchmarks during the session.

Risks to Weigh In

The Morningside sale, valued at $80.7 million, remains subject to due diligence, and the group's guidance depends on the transactions completing broadly in line with the anticipated timetable. Settlement dates extend to around March 2027.

Revenue is expected to fall materially once the sales settle, so earnings will depend increasingly on lending activities. Lending carries credit and counterparty considerations, and guidance remains subject to previously disclosed assumptions and qualifications.

Catalysts on Watch

Settlements are scheduled for 20 November 2026, 22 January 2027 and around March 2027, while Morningside due diligence is pending.

Further detail on how Garda deploys the $176.6 million of surplus cash into lending, and on distributions against the FY27 guidance of 12.5 cents per security, is also pending.

Putting It Together

Garda Property Group shares were higher at $1.13 during the session while the broader market declined. The group's announcement dated 21 October 2026 sets out a sale of its entire investment property portfolio, full debt repayment and a shift towards lending.