Units in GPT edged higher yesterday in the general market sell-off after the property trust released an encouraging full year earnings update.
The update was issued to allow the company to "reactivate its on-market buyback prior to the release of the full year earnings figures on February 13".
The announcement follows the recent decision not to proceed with its offer for the Commonwealth Property Office Fund. Instead Dexus (DXS) and its partner will move to buy control of the Commonwealth Fund.
GPT will buy some office properties from Dexus later in the year.
The news saw the units rise 1.1% to $3.61 after dipping around 3c lower in early trading.
They bounced back as investors digested the brief update and the partial recovery in the wider market.
GPT 1Y – GPT reactivates share buy-back
GPT said in the statement that its realised operating income for the full year to December 31, 2013 will be about $471.8 million, up from the $456.4 million reported for 2014.
The realised operating income per ordinary security is 25.7¢ for the full year and EPS growth of 6.1% "which is in line with previous guidance of at least 6 per cent," according to the statement.
Under the current buyback, the group is allowed to buy back up to a about a further 100 million securities or 10% of the issued units over 12 months, up to May 2014.
In early December, GPT announced an estimated distribution for the six months to December 31, 2013 of 10.3c for each security.
