GPT Group has delivered a net profit after tax of $752.3 million, an increase of 28.3%.
Funds from operations per security were $279.8 million, or an increase of 3.5% to 15.54 cents per security. The group also upgraded its guidance for funds from operations per security growth to 3% for the full year 2017, up from the 2% growth rate announced at its annual result in February.
GPT’s CEO Bob Johnston, said its four divisions of retail, office, logistics and funds management all experienced improved conditions in the past six months and the coming months were expected to be busy given low office vacancies, rising demand for retail services such as beauty and food, and increasing demand in e-commerce for logistic warehouses.
An interim distribution of 12.3 cents a unit will be paid on August 31.
“The strong performance of the office portfolio is being underpinned by continued leasing success and the positive fundamentals of the group’s core markets of Sydney and Melbourne," Mr Johnston said.
“We are seeing a rise in demand for our Space & Co [co-working space] and new tech tenants, with Amazon Web Services increasing its space at 2 Park Street, Sydney, to 15,000 square metres and this is leading to net effective rent growth and lower incentives."
Imagine that, a company with a positive about the arrival of Amazon in Australia!
GPT units jumped more than 3% yesterday to $4.95. But that is still well down on the most recent high of $5.38 hit in April.
