GPT shares tumble after recording first-half loss
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More news: Property group GPT saw shares decline 4.6% by 2:00pm AEDT, as an $819 million drop in the company's investment property revaluations dragged first-half earnings.
Citi analysts, however, noted that GPT's full-year funds from operations guidance is ahead of expectations.
They commented: "At first glance this looks like a more resilient result than investors were expecting in our view and reflective of a better than expected underlying reporting season from the sector".
Property group GPT reports $240m loss
The news: Diversified property group GPT reported a loss of $240 million for the year to December 2023, as the company's investment property revaluations declined $819 million.
The numbers: GPT's post-tax net loss of $240 million from $469.3 million. It said investment property reevaluations declined $819 million compared to a $159.3 fall in 2022. Funds from operations also shrunk 3.2% to $600.9 million.
Meanwhile, the Sydney-based group saw its retail segment grow 9.6% to $317.5 million, while lower average occupancy dragged down funds from its office segment by 3.1% to $283.9 million. Its logistics and funds management segments were up 5.1% and 14.3% respectively compared to FY22.
The context: GPT, which reports on a calendar-year basis, said that its expects retail sales growth to remain positive over 2024, with retailers maintaining healthy levels of profitability and sustainable occupancy costs.
However, it commented that Australia's office leasing market "remains challenging", with elevated vacancy rates and subdued demand in Sydney and Melbourne.
The source: ASX announcement
