GPT Group delivers $240 million loss

19 February 2024

Today, GPT Group announced results for the 12 months to 31 December 2023. The net profit after tax landed at $240 million loss, with a decline compared to the previous year due to the devaluation of investment properties. The results will mean investors will receive a full-year distribution of 25 cents per security.

GPT’s Chief Executive Officer, Bob Johnston, said: “The Group has delivered a solid result for the year. FFO and distributions per security were in line with the guidance provided at the beginning of the period. However, a softening in valuation investment metrics resulted in a 5.1% decline in the valuation of GPT’s investment portfolio.

“Our Retail portfolio delivered excellent results in 2023, boosted by the strong performance of Melbourne Central, GPT’s largest retail asset. The Group achieved positive leasing spreads and retained high occupancy across the Retail portfolio reflecting the demand from retailers for space in high quality assets.

“Despite the challenging office leasing market, the Group completed over 130,000 square metres of leasing during the year, resulting in Office portfolio occupancy including Heads of Agreement increasing to 92.3% at year end. The office market remains challenging given the changes in work practices including remote working, elevated market vacancy and new supply.

“GPT’s Logistics portfolio delivered strong results for the period with leasing spreads of nearly 40% and occupancy at year end of 99.5% including Heads of Agreement. Five developments were completed during the period, adding over 111,000 square metres of prime grade assets to the portfolio.

“The Funds Management platform continues to expand. In October, investment management of QuadReal’s Student Accommodation portfolio transitioned to GPT and CSC recently selected GPT as the investment manager of a portfolio comprising office and retail assets. These new mandates provide further scale and operating leverage for our real estate platform and are a strong endorsement of the Group’s capabilities and governance framework.”

GPT expects to deliver approximately 32.0 cents per security and a distribution of 24.0 cents per security in 2024.