GMG +2.12%: a slightly soft 1H for the industrial property company, however, the guidance suggests this will be more than made up for in the second half. Operating earnings were up 11% to $877m, which was a miss to consensus, however, EPS of 46cps was in line. The strong development result offset a slightly softer property investment in half. Momentum in December was key with rents accelerating and development yield expanding nearly 100bps to 6.7% in the second quarter vs Q1. Guidance was upgraded to 13.5% growth in Operating EPS, from 11%, though consensus had that priced in. The timing of performance fees should boost the second-half result and explains the slight miss today which the market appreciated.
MM is bullish and long GMG
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