There seems to be life after the credit crunch and recession for GPT.
The property trust, which fell into a loss-making deal with the failed Babcock & Brown that took GPT to the edge of failure in 2008 and early 2009, now says it has survived and is focused on achieving income growth in excess of annual Consumer Price Index inflation.
It sounds very formulaic, but a year ago, GPT could only hope that it would survive until mid-year, then the end of the year, such were the pressures on it from the market, bankers, plunging property prices, failing tenants and trying to get free from the Babcock & Brown entanglement.
Not conditions are returning to a less frenetic pace, property prices are still weak, but at least the banks and investors are no longer treating it as a failure in waiting.
So it told the market yesterday that it will be "targeting 2010 realised operating income to be above the 2009 result (of $378 million); with a distribution of at least 3 cents per security".
That will be down on the 4.5c distribution announced yesterday for the 2009 financial year.
A modest aim, in keeping with more modest times.
But at least it now has time to think about the future and plan for improvement after the rough passage of the past three years.
The trust yesterday said it earned realised operating income of $375.8 million for the 12 months to December 2009, and a cash distribution of 4.5 cents per security for the year.
It said the 3.7% comparable income growth from the core Australian portfolio, during a year of uncertainty and tough credit markets, "reinforces the high quality of its Australian portfolio and the focus of its renewed Board and management team".
"The result represents outperformance against realised operating income guidance announced in May 2009 of $365 million."
CEO, Michael Cameron said in the statement that GPT "had exceeded expectations relative to its objectives for 2009 through a substantial effort from the team."
"The trust is now an active owner of high quality assets with a clear strategy, has competitive strengths of scale, quality, diversification and culture; sees growth from structured rent increases embedded across the majority of the portfolio, has an extensive $2.4 billion development pipeline, investment capacity of $2.5 billion."
An improved full-year statutory loss came after the trust made smaller write-downs in 2009 than 2008.
The trust recorded a net loss of $1.07 billion for the 12 months to December 31, far better that the $3.25 billion loss it reported in the prior corresponding period.
GPT reported a net profit of $124.9 million in the second half, the company said in a statement to the ASX.
GPT will pay a fourth quarter distribution of 1c per stapled security, which will take the payout for 2009 to the already mentioned 4.5c a security.
The trust’s securities ended up half a cent, at 60 cents, by the close yesterday.
The securities went from almost $4 each in early 2007 to a low of just over 20 cents in March 2009.
There’s still a way to go.
