How are GPT’s (ASX:GPT) shares faring post logistics assets sale?

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Image Source: © Philldanze | Megapixl.com

Highlights

  • GPT finalised the sale of Rosehill and Citiport Business Parks on 24 November 2022.
  • Shares of GPT were reacting negatively to the news, down 0.344% at 10:51 AM AEDT, 25 November.

On 24 November 2022, Australian real estate company The GPT Group (ASX:GPT) announced via an ASX filing that it has confirmed the sale of two of its logistics assets. The sale contracts were signed off for AU$256.2 million for the assets Rosehill Business Park and Citiport Business Park, situated in Camelia, New South Wales and Port Melbourne, Victoria, respectively.

The GPT Group anticipates settling this transaction by the beginning of 2023. The company has indicated to utilise capital proceedings from this sale to pay off the company’s debt.

According to the ASX release, the quoted sale price represents a 9% premium above the assets’ net value as of 31 December 2021 while being equal to the 1.5% discounted value of both assets as of 30 June 2022.

What’s happening with GPT’s shares after assets sale?

Shares of Australian property group were heading south following the announcement of the logistics assets sale. One share of GPT was valued at AU$4.335 with a loss of 0.344% as of 10:51 AM AEDT, 25 November.

While GPT’s shares were declining, the benchmark S&P/ASX 200 Real Estate sector gained 3.4 points, totalling 3,104.4 points around the same time.

Following today’s negative performance, The GPT Group’s share value has increased by 0.35% in the last five trading sessions while leaping 7.57% in a month. However, shares of GPT have dropped 21.61% on a year-to-date (YTD) basis and 19.57% over the course of a year.

What else has been happening at GPT Group?

Earlier this month, The GPT Group published its Q3 FY22 operational update on the ASX. Let’s look at the key takeaways below:

  • In the retail portfolio, the total number of completed lease deals was 95 for the quarter ended 30 September 2022.
  • On specialty leasing deals, fixed base rents saw an average annual increase of 4.5%, along with an average lease term of 4.6 years.
  • GPT managed to take the retail portfolio occupancy to 99.4% in the third quarter of 2022 from 99.3% in June 2022.
  • Total quarterly sales for the centre across retail surged 8.9%, and total specialty sales saw an increase of 11.2% when compared to Q3 2019.
  • In the office portfolio, the total leasing during the quarter was 27,700m2, bringing total leasing from 51,900m2 in June 2022 to 79,600m2 for the calendar year to 31 October 2022.
  • Occupancy in office decreased from 92% in June 2022 to 91.6% in September 2022.
  • The total leasing volume for the logistics portfolio reached 45,300m2 during the third quarter of FY22, increasing the total leasing volume for the calendar year to 31 October 2022 to 273,300m2 from 228,000m2 in June 2022.
  • Occupancy in logistics decreased from 98.7% in June 2022 to 98.4% in September 2022.


 


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