This article is from the Australian Property Journal archive
Strong office leasing outcomes led to healthy first-half funds from operations (FFO) growth for GDI Property Group, as well as upwards revaluations for key workplace assets.
GDI leased, renewed and signed heads of agreement across a total of 16,000 sqm in the first half, continuing its good momentum.
FFO growth was 26% on the prior corresponding period, to 3.07c per security, primarily driven by a 38% increase in property funds from operations to $25.4 million. The Westralia Square complex in Perth’s contribution increased $5.6 million to $15.4 million, and Mill Green’s contribution lifted $1.1 million to $7.9 million.
The leasing efforts, combined with increased market net effective rents, resulted in higher independent for Westralia Square, up $16 million to $395 million, and WS2, up $11 million to $105 million.
Westralia Square still saw a 0.375% increase in its capitalisation rate to 6.375%.
Net tangible assets per security was unchanged at $1.19. The weighted average capitalisation rate of its investment properties is 6.7%.
Distribution for the half was 2.5c per security.
“GDI is focused on delivering on its strategy, which calls for more leasing to maximise the value of assets in both the property division and funds business. We will continue to monitor capital recycling opportunities, and are actively pursuing growth initiatives within the existing portfolio,” GDI said.
GDI’s balance sheet showed a gearing of 34%.
