This article is from the Australian Property Journal archive
THE strong performance of the office and retail sectors have delivered GPT with a funds from operations of $501.7 million for the 2015 full year, up 11% on 2014.
Including revaluation gains of $432.1 million, GPT’s net profit after tax was up 34.5% to $868.1 million.
Delivering his first results as CEO Bob Johnston said the group’s strong performance reflected positive trading conditions in the retail and office sectors, and the continued demand for investment assets.
“GPT has delivered a solid result from its investment portfolio, funds management division and development activities. In addition, the group has maintained a disciplined approach to capital management with gearing at 26.3% and a low weighted average cost of debt,” he added.
GPT’s investment portfolio delivered like-for-like income growth of 3.8% for the 12 months to 31 December 2015 and a total portfolio return of 10.9%.
The retail portfolio delivered strong specialty retail sales growth of 6.5% and total return of 8.9%.
The office and logistics business recorded like-for-like income growth of 6.3% and total return of 12.8%.
The office portfolio’s weighted average capitalisation rate firmed 47 basis points over the year to 5.94%, contributing to a $212.7 million net revaluation gain.
The funds management business delivered a total return of 14% with funds under management increasing by 4.6% over the year.
Johnston said GPT was on track to deliver FFO per security growth of between 4 and 5% for FY16.
“GPT starts the year in a strong position and is focused on driving returns for securityholders from all areas of the business,” Johnston said.
Australian Property Journal
