GPT is looking for logistics and office deals to increase revenue

Diversified real estate giant GPT has given investors higher earnings guidance on booming industrial and logistics sectors and a turnaround at its malls, which have been hit hard by the COVID-19 pandemic.

An agreement to manage UniSuper’s $2.8 billion direct real estate mandate and a major $1.8 billion development program caused GPT to increase working capital by 8 percent to $326.5 million -dollars – the more accurate measure of the profitability of listed real estate groups for the six months ended March 30.

GPT chief Bob Johnston said the improving outlook despite rising interest rates and inflation woes led him to forecast FFO earnings per share of 32.4 cents, which is at the highest end of the group’s internal numbers and ahead of most market analysts.

GPT CEO Bob Johnston says the group's retail operations are back to pre-COVID-19 levels.

GPT CEO Bob Johnston says the group’s retail operations are back to pre-COVID-19 levels.Recognition:Cole Bennetts

‘There was a strong rebound in sales performance across GPT’s retail portfolio, buoyed by low unemployment and strong household savings.’

Bob Johnston, GPT boss

“The logistics industry is benefiting from ongoing structural momentum. Vacancies in the core markets remain very low across the country, which means that further increases in market rents can be expected,” said Johnston.

“Sales performance across GPT’s retail portfolio has rebounded strongly, buoyed by low unemployment and strong household savings.”

ASX-listed GPT has a market value of $8.2 billion and owns and manages $27.4 billion in diversified real estate assets with a balance sheet portfolio of $16.4 billion.

Johnston said Melbourne Central, which had been hit hard by the pandemic, is benefiting from the return of students, tourists and the gradual increase in the number of CBD workers. A new Monopoly Dreams concept opens in the center.

However, he warned that rising interest rates will lead to some deceleration in retail sales growth.

https://www.smh.com.au/business/companies/gpt-looks-to-logistics-and-office-deals-to-boost-earnings-20220815-p5b9y9.html?ref=rss&utm_medium=rss&utm_source=rss_business GPT is looking for logistics and office deals to increase revenue

Brian Lowry

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