GPT profit dips in first half

Property firm GPT Group has seen a 3 per cent dip in profit to $728.5 million in the six months to 30 June 2018.

Funds from operations (FFO) grew 3.4 per cent to $289.4 million, and FFO per security grew 3.2 per cent to 16.04 cents for the period.

The group’s retail portfolio reported comparable income growth of 2.3 per cent, a drop from the previous comparable periods 3.8 per cent growth.

The group’s occupancy rate improved to 99.7 per cent, a slight bump over last year’s 99.6 per cent, while net income rose 3.2 per cent to $156.8 million.

The portfolio recorded a valuation increase of $53.5 million during the six-month time frame, with average fixed rental increases of 4.8 per cent and average terms of 4.8 years on new leases achieved. Forty-eight new retail brands were added to the group’s portfolio.

The $420 million redevelopment of Queensland’s Sunshine Plaza, 50 per cent owned by GPT, is due for completion in the second quarter of 2019.

The 35,000sqm expansion will include the Sunshine Coast’s first David Jones, a refurbished Myer, Big W and more than 100 specialty retailers, as well as a waterfront dining and leisure precinct.

Provided employment growth remains strong and softening house prices don’t dampen consumer sentiment, GPT expects retail sales growth to continue into the second half of 2018.

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