Shares of property investment company GPT Group (ASX: GPT) have surged to new yearly highs on Monday morning and are now swapping hands 3% higher at $4.82 apiece.
The previous 52-week high was $4.73 per share.
Investors are buying GPTR shares today, buoyed by the company's robust performance in its interim results for the six months ended June 30, 2024.
Let's see what the company posted.
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GPT shares spike on solid interim results
Key takeouts from GPT's half-yearly results include the following:
- Funds from operations (FFO) reached $309.1 million, translating to 16.14 cents per security.
- Adjusted funds from operations (AFFO) stood at $258.4 million, with an interim distribution of 12 cents per security.
- Net loss after tax came in at $249.4 million, impacted by a $566.8 million decline in investment property valuations.
- Net tangible assets (NTA) valued at $5.36 per security.
- Gearing maintained at 29.6%.
What else happened in H1 2024?
GPT shares had a mixed half despite strong company financials. The retail segment achieved an occupancy rate of 99.6%, accompanied by a 5.8% increase in comparable income.
Centre sales were up 4% over last year, whereas speciality sales productivity came to $13,052 per square meter for the retail portfolio.
Net valuations increased by nearly $42 million compared to the prior six months, resulting in an average capitalisation rate of 5.4%.
It also completed 271 leasing deals during the period.
Meanwhile, the office portfolio showed an occupancy rate of 92.4%, with a weighted average lease expiry (WALE) of 4.9 years.
However, the broader sector faces ongoing pressures, particularly with softer demand in certain markets. This led to a 1.3% decline in comparable income for GPT.
Valuations in its office portfolio were also down more than 10% versus the previous half.
After all the dust settled from the period, GPT's assets under management (AUM) increased to $34.4 billion. GPT shares are sensitive to this figure.
What did management say?
GPT CEO Russell Proutt commented on the results:
GPT's first half performance reflects the strength of the Group's diversified portfolio and our disciplined approach to capital management. We remain on track to deliver on 2024 full year guidance provided earlier in the year and declared a distribution of 12.0 cents per security for the first half.
With a $34.4 billion Management Platform, including $22.1 billion across funds, partnerships and mandates, and deep operational capability, our business is in an excellent position to meet the challenges and opportunities of the market.
What's next?
Looking forward, GPT aims to continue its growth trajectory.
Management reaffirmed its 2024 FFO guidance of approximately 32 cents per security and a full-year distribution target of 24 cents per security.
Proutt detailed the company's ambitious targets within the Aussie real estate domain moving forward:
Our ambition is to position GPT to become Australia's leading diversified real estate investment manager, dedicated to providing exceptional value, innovation, and sustainable growth for our investors and stakeholders.
This is an evolution of our strategy, with an acceleration and emphasis on our investment management segment.
GPT share price snapshot
GPT shares have extended their momentum, reaching a new 52-week high on Monday.
This continues a trend that's been in situ for the past month of trade. Over that time, the stock has gained more than 8%.
