GPT Group (ASX: GPT) has recently via an ASX release declared its annual results for the year ended 31 December 2018. The results for the year were in-line with the company’s upgraded guidance in October, Distributions and FFO per security grew by 3.5 %. The company’s NTA is up 11% to $5.58, and the 12-month Total Return was 15.8%. The company’s team has been successful in delivering strong returns from the company’s portfolio over the last 12 months through active asset management, leasing and development. The Retail portfolio provided solid like for like growth and occupancy has been maintained at 99%. Valuation growth was modest except for Melbourne Central which was up $100m due to the strong growth from the asset.
As per the company’s announcement, its office portfolio has delivered outstanding results with strong like for like growth and revaluation gains, reflecting the fact that the business is predominantly exposed to the Sydney and Melbourne markets where supply and demand fundamentals remain favourable. The Logistics portfolio also delivered a significant uplift in valuations. The sector continues to attract substantial investment demand, and the management doesn’t see this theme changing. The asset class has been rerated with prime core assets now trading at cap rates of close to 5%.
The company’s balance sheet remains robust with A space credit ratings, gearing of approximately 26% and a weighted average debt maturity profile of 6.3 years. The dividend declared for six months ending December 31, 2018, is AUD 0.12850000, the record date for which was December 31, 2018, & the payment date shall be February 28, 2019.
The company has guided for the year 2019 & stated that both FFO and Distribution growth of 4.0 per cent per security is expected. The sale of MLC is supposed to be neutral to guidance. From a development perspective, Stage 1 of the Sunshine Plaza expansion opened successfully in November last year with the balance expected to open at the end of next month. Outstanding progress has been made on leasing, and the management expects the second stage will open fully leased and will provide customers with a very compelling offer. The management is also now underway with the company’s office development at Parramatta after securing a 50% pre-commitment with QBE. The company’s office development at Sydney Olympic Park reached PC in October and is now 80% leased. Logistics developments in Sydney’s west were also completed.
Now, let us have a quick glance at GPT Group’s stock performance and the return it has posted over the last few months. The stock is currently trading at a price of $6.090, with a market capitalisation of ~$11.01 Billion. The counter opened the day at $6.100, it touched a day’s high of $6.110 and touched the day’s low of $6.075 with a daily volume of 3,140,798. The stock has provided a YTD return of 14.88% & also posted returns of 14.23%, 15.97% & 14.45% over the past six months, three & one-months period respectively. It had a 52-week high price of $6.125 and touched 52 weeks low of $4.590, with an average volume of 5,651,303.
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