GPT Group narrows FY loss, meets guidance
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The news: Property investor GPT Group narrowed its full-year loss during the 12 months to December but saw its investment real estate valuation fall by $770.7 million over the period.
The numbers: GPT reported a net loss after tax of $200.7 million for the 2024 calendar year, trimmed from a $240 million loss a year earlier.
GPT recorded lower negative investment property valuation movements of $770.7 million, compared to an $819 million negative revaluation in 2023.
Funds from operations (FFO) of 32.2 cents per share were up 2.6% year on year, in line with guidance. Distributions of 24 cents per share were down 4%.
The company expects to deliver FFO between 32.5 and 33.1 cents per share in 2025, which would equate to 1% to 3% growth on 2024. It guided a flat distribution of 24 cents per share.
The context: GPT chairman Vickki McFadden said the Australian real estate market "continues to be a complex operating environment", characterised by "elevated interest rates, geopolitical tensions, and economic uncertainty".
However, she noted that GPT has seen greater capital activity and investment as the market adjusts to the higher interest rate environment.
"The persistence of higher borrowing costs, however, continues to weigh on profitability and asset valuations," she said.
The source: ASX announcement
