GPT Group profit falls 3 per cent

Melbourne CentralThe GPT Group has found a net profit after tax of $728.5 million for the six months to 30 June 2018, a decrease of 3 per cent from the prior corresponding period.

The group’s retail portfolio produced like-for-like income growth of 2.3 per cent for the half, with property net income for the 6 months rising 3.2 per cent to $156.8 million, with Rouse Hill Town Centre, Melbourne Central and Charlestown Square being the strongest performing assets.

“The half-year result was driven by strong valuation gains across the Group’s investment portfolio, particularly in Office, which benefited from strong market rental growth,” said CEO Bob Johnston.

“The quality of our Retail portfolio was further demonstrated during the period, with total specialty MAT growth of 4.4 per cent and occupancy at 99.7 per cent.”

During the six months, fixed rental increases of 4.8 per cent and an average term of 4.8 years on new leases were achieved, with 48 new retail brands introduced to the portfolio.

Additionally, the $420 million expansion of Sunshine Plaza, in which GPT has a 50 per cent interest, is due for completion in the second quarter of 2019. Seventy-five per cent of leasing deals for the development have been completed, with the group noting “good progress has been made”.

The group’s logistics portfolio delivered like-for-like income growth of 3.6 per cent for the period, with occupancy at 96.6 per cent and weighted average lease expiry across the portfolio landing at 7.4 years.

A distribution per security growth of 3 per cent, as well as a funds-from-operation per security growth of 3 per cent, is expected for FY18.

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