GPT Group have joined Mirvac in cancelling their earnings guidance for 2020 as a result of the uncertainty in relation to the duration and impact of the COVID19 pandemic on their operations.
The Group had previously expected growth in both FFO per security and Distribution per security of 3.5 per cent.
The Group suggests that they are well placed to respond to the uncertainty, with a high quality portfolio and very strong financial position which includes $1.3 billion of available liquidity held in cash and undrawn bank facilities. GPT's gearing remains low at approximately 22 per cent, with less than $100 million of debt maturing through to December 2021 and the Group maintains strong A / A2 credit ratings from S&P and Moody’s respectively.
As with GPT and all of the REIT's the key questions are not just about the resilience of the balance sheet but the impact on earnings. GPT's share price has dropped 35% since mid February with the market waiting to better understand the full financial impacts.
GPT’s CEO & Managing Director, Bob Johnston said, “We have taken action to ensure the health, safety and well-being of our staff, customers, visitors and the communities in which we operate, and this remains our utmost priority. We recognise that these are uncertain times for our people and for our customers. Through the implementation of the policies and procedures we have in place to respond to such an event, we are taking the appropriate steps to support our stakeholders during this time.”
GPT’s Annual General Meeting is scheduled for 13 May 2020.
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