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REPORTING SEASON: GPT Group (GPT)

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Figure 1: GPT Group 12 month chart

 

GPT Group (GPT) earnings boosted by a rise in property valuations

 GPT Group (GPT) posted a better than expected annual profit of $645.3m for the 12 months ended 31 December 2014.

 Earnings were boosted mostly by a $208.9m rise in property valuations. Rental income from its retail, office and logistics portfolios accounted for 90% of Group revenue. Its retail portfolio made up 44% of income with Wesfarmers, Woolworths and Myer the top three tenants (12% of revenue). Income across its Retail portfolio worsened over FY14.

 The property group said it has been making inroads into repositioning and de-risking its second biggest income producer, its Office portfolio. GPT secured more than 188,000sqm of new leases; a 35% rise on the previous year, although revenue eased by 1.6%. Its Office portfolio accounts for ~23% of income.

 GPT will be paying out a final dividend of $0.107/share on 27 March. The property group’s ex-distribution date was 29 December 2014 and has a 4.5% yield.

 GPT said it’s on track to achieve 5% EPS growth for FY15 and expects shopping centre sales to benefit from a weaker oil price and a moderation in online retail sales. GPT expects rental growth to increase in its Sydney and Melbourne Office portfolios.

 

You can see all of CommSec’s reporting season analysis by clicking here.

Steven Daghlian, Market Analyst,