GPT Group is an active owner and manager of a diversified portfolio of Australian retail, office and industrial property assets including the MLC Centre & Australian Square in Sydney and Melbourne Central, the stocks reasonably priced trading on an estimated PE of 14.2x while it’s expected to yield 6% over the next 12-months. We liked this week’s 1H21 result from GPT, the numbers were a clear beat on expectations with Funds From Operations (FFO’s) at $302m versus $290m expected which filtered down to a better than expected dividend of 13.3cps. Also, the board talked about increasing their exposure to logistics assets plus they made 2 interesting comments on rents, essentially cash flow was better as they were being paid rents accrued but not paid in FY20 plus they said that retail leasing was tracking better than they expected. Office was the only real drag with occupancy sub 90% and getting worse.
- GPT closed up +5.35% yesterday but we can see further upside over the remainder of 2022.
MM likes GPT ~$4.50
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