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.