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Shares of GPT Group Ltd (ASX:GPT) have surged to a new yearly high on Monday morning, trading 3% higher at AU$4.82 per share. This rise surpasses the previous 52-week high of AU$4.73, driven by the company's robust interim results for the six months ending June 30, 2024.
GPT’s impressive performance highlights several key financial metrics. Funds from operations (FFO) reached AU$309.1 million, equating to 16.14 cents per security. Adjusted funds from operations (AFFO) were reported at AU$258.4 million, with an interim distribution of 12 cents per security. Despite these strong figures, the company reported a net loss after tax of AU$249.4 million, largely due to a significant AU$566.8 million decline in investment property valuations. The net tangible assets (NTA) stood at AU$5.36 per security, while gearing was maintained at 29.6%.
The company’s retail segment showed notable strength, with an impressive occupancy rate of 99.6% and a 5.8% increase in comparable income. Retail centre sales grew by 4% year-over-year, and specialty sales productivity hit AU$13,052 per square meter. Additionally, GPT completed 271 leasing deals during the period. Net valuations for the retail sector saw an increase of nearly AU$42 million, with an average capitalisation rate of 5.4%.
In contrast, the office portfolio faced challenges. The occupancy rate was 92.4%, and the weighted average lease expiry (WALE) was 4.9 years. However, this segment experienced a 1.3% decline in comparable income and a more than 10% drop in valuations compared to the previous half-year.
Despite these sector-wide pressures, GPT Group’s assets under management (AUM) increased to AU$34.4 billion, which significantly influences the company’s share price. Investors are responding positively to these results, reflecting confidence in GPT’s growth trajectory.
Looking ahead, GPT Group has reaffirmed its 2024 FFO guidance of approximately 32 cents per security and a full-year distribution target of 24 cents per security. The company aims to maintain its growth momentum and continue delivering value to shareholders.
In summary, GPT Group's strong interim results and strategic performance in the retail sector have driven its shares to new highs. While challenges remain in the office segment, the company's overall growth and financial health continue to attract investor interest.
