This article is from the Australian Property Journal archive
GPT Group (ASX: GPT) saw a marked improvement in its results for the year ending 31 December 2021, though the impacts of COVID-19 left the group with a NPAT of $1.4 million.
After posting a net loss after tax of $213.2 million in 2020, GPT’s $1.422.8 profit is a significant return to the positive. GPT also saw valuation increases of its investment property of $924.3 million.
“GPT commenced 2021 with solid momentum however this was disrupted by the Delta outbreak of COVID-19 in the second half of the year,” said Bob Johnston, CEO of GPT.
FFO were at $554.5 million, down marginally from $554.7 million in 2020, with FFO per security at 28.2 cents, up from 28.48 cents.
The group also posted a full year distribution of 23.2 cps up from 22.5 cps in 2020, with a distribution of 9.9 cps for the six months to 31 December 2021.
Net tangible assets per security were at $6.09, up from $5.57 in 2020.
“Severe lockdown measures restricted trading activity and impacted the performance of our Retail portfolio, particularly during the third quarter. Despite these impacts the Group’s diversified portfolio generated a total return of 14.1% for the year,” added Johnston.
In the group’s office portfolio leasing volumes were up, with transactions including HoA totalling 151,800sqm, while the office portfolio’s WALE remained stable at 5.0 years, while occupancy was stable at 94.8%.
GPT’s office portfolio also recorded a net valuation increase of $338.3 million, up 5.8%.
While in the latter six months of the year, the portfolio’s WACR tightened by 10 bps to 4.77%.
The logistics portfolio saw a $1.4 billion boost over the year, reaching a total value of $4.4 billion.
This included $694 million of acquisitions and a $555.0 million or 14.4% valuation increase over the year, with the WACR firming by 27 bps in the latter half of the year to 4.11%.
With demand heightened in the logistics space, portfolio occupancy was at 98.8%, with 118,600sqm of leases transacted and 63,700sqm of HoA, while WALE was at 6.5 years.
In GPT’s retail portfolio total centre sales were up 3.7%, with total specialty sales up 6.2%, on the previous year despite challenges.
Retail portfolio occupancy was at 99.1%, with 561 leases transacted and rent collection at 91% for the full year, though at 82% of gross billings in the second half.
The portfolio has a net valuation increase of $30.7 million or 0.5%, with a WACR of 5.03%.
GPT at 31 December had $934.7 million in available liquidity in cash and undrawn bank facilities. While gearing was at 28.3%, within its target range of 25% to 25%, with a weighted average deb term of 6.3 years.
