The GPT Group announced that given the uncertainty in relation to the duration and impacts of the measures being implemented to suppress the spread of COVID-19 in both Sydney and Melbourne, it is appropriate to withdraw its Funds From Operations (FFO) and distribution guidance for the 12 month period to 31 December 2021.
GPT’s Chief Executive Officer, Bob Johnston, said: “In line with strengthening economic conditions, we have seen a strong recovery across our retail portfolio during the course of the first six months of this year. However, given the recent restrictions in both Sydney and Melbourne and the uncertainty as to when these restrictions will be lifted and the ongoing risk of additional measures, we believe it is prudent to withdraw FFO and distribution guidance for the full year. GPT has a high quality diversified portfolio, an exceptionally strong balance sheet and liquidity position, and we expect that we will see a recovery once normal trading conditions resume as we have experienced previously.”
GPT previously cancelled its guidance for the 2020 calendar year back in March last year, reinstating guidance just 2.5 months prior to the 30 June 2021. In February 2021, GPT reported a net loss after tax of $213.1 million for 2020, compared to a net profit after tax of $880.0 million in 2019, a drop of almost $1bll. With Victoria and NSW seeing extended lockdown periods in the July, and in the absence of Government support for retail tenants, the trading conditions and viability of its tenants is highly unpredictable.
GPT will release its 2021 Interim Result on 16 August 2021 and will provide an update on trading conditions at this time.
Related Articles
