GPT+1.71% reported a better than expected 1H24 result this morning while guidance was inline with current consensus.
- Funds from operations (FFO) of $309.1 million, -2.4% y/y
- On a per share basis that was $0.1614 vs. consensus of $0.156
- There is a headline loss of $249.4 million though that relates to revaluations.
- Interim distribution of $0.12 with guidance of $0.24 for the full year, puts it on a 5.15% relative to our recent entry price.
- Reconfirmed guidance for FFO per share about $0.32, inline with consensus.
- NTA of $5.36 meaning GPT trades on an 11% discount based on todays close.
The result was very solid today, interestingly, office occupancy is running better than expected at 92.4% and office income decline was only 1.3% for the year i.e. not as doom and gloom as many thought. Logistics and retail were strong as expected, with occupancy at 99.4% and 99.6% respectively, with retail showing income growth of 5.8% and an average annual rental increase of 4.9%. The growth aspect of this stock comes from funds management, which will become a bigger slice of the pie in coming years.
They have around $1.4 billion in liquidity with gearing of 29.6% inline with their target (25-35%).
MM is long & bullish GPT
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