The GPT Group

GPT reported first-half 2026 FFO of $338.8 million, up 5% year over year, or 8.3% excluding trading profits. AFFO was $263.4 million, up 2.3%, and statutory NPAT was $400.1 million. On the operating side, like-for-like NPI grew 5.8% at the asset level across the portfolio, with Retail up 4.6%, Office up 8%, and Logistics up 4% in the investment portfolio commentary. On a group basis, net finance costs were $113.4 million, NTA per security rose from $5.53 to $5.61, and net gearing was 31.5% with $1 billion of liquidity. Management affirmed full-year guidance for FFO of $0.354 per security, implying 4% growth on 2025 reported earnings and 5.7% growth excluding trading profits, and distribution guidance of $0.245 per security.

Russell Proutt framed the half as one where sound property fundamentals offset volatile capital markets, and said the company’s strategy remains unchanged: disciplined capital allocation, investment in capability, and alignment with partners through co-investment. He highlighted progress on platform scale, saying GPT ended the period with $41.6 billion of AUM and continued to grow with existing and new institutional investors. His tone was confident and measured, emphasizing that GPT will pursue opportunities only where the structure and economics make sense.

Merran Edwards focused on earnings quality, portfolio growth, and balance sheet strength. She cited $338.8 million of FFO, $263.4 million of AFFO, $400.1 million of NPAT, net finance costs of $113.4 million, and a 34 basis point reduction in the weighted average cost of debt to 5% at 30 June. She also pointed to a 31.5% net gearing ratio within the target range, $1 billion of liquidity, no unfunded capital commitments, and hedging of 74% of average drawn debt in 2026 and 60% in 2027.

Analysts focused on office occupancy pressure from Grosvenor Place, the lease-up path for 51 Flinders Lane, capital allocation hurdles, Rouse Hill returns, and whether FY26 maintenance CapEx/tenant incentives are peaking. Management said Grosvenor is tracking to underwriting, about 70% occupied, with roughly 30% available for lease, and expects progress over the next 12 months; 51 Flinders is 39% committed today and could see an uplift in commitment by year-end. They also said FY26 may be the peak for maintenance CapEx and tenant incentives, with tapering into 2027, and noted Rouse Hill is fully leased, ahead of schedule, and expected to reach full income by about March '27.