Garda Property Group reported a net loss of $10.19 million for the half-year ended December 31, 2024, yet maintained its interim dividend, signaling resilience amid asset value declines.
- Net loss after tax of $10.19 million for HY25
- Revenue from operations increased to $7.37 million
- Total assets decreased by 8.7% to $567.3 million
- Interim dividend maintained at 0.225 cents per security
- Net tangible assets per security declined to $1.62
Financial Performance Overview
Garda Property Group has released its Appendix 4D and interim financial report for the six months ended 31 December 2024, revealing a challenging half-year marked by a significant net loss of $10.19 million. This contrasts sharply with the prior corresponding period, reflecting pressures on the group's asset base and profitability.
Despite the loss, revenue from operations rose modestly to $7.37 million, indicating some operational stability amid broader market headwinds. However, the group's total assets contracted by 8.7% to $567.3 million, with net assets and net tangible assets also declining by 11.5%, underscoring a reduction in the underlying value of its property portfolio.
Dividend and Distribution Strategy
In a move that may reassure investors, Garda maintained its interim dividend at 0.225 cents per security, consistent with the previous half-year. Total distributions for the period amounted to 1.8 cents per security, up from 1.575 cents in the prior year, reflecting the group’s commitment to delivering shareholder returns despite the reported losses.
The dividend remains fully franked, a positive signal for income-focused investors seeking tax-effective returns. The record dates and payment dates for these dividends have been clearly outlined, ensuring transparency in shareholder communications.
Balance Sheet and Capital Considerations
The decline in net tangible assets per security to $1.62 from $1.77 a year earlier highlights the pressure on Garda’s balance sheet. The group’s issued securities count decreased slightly, reflecting minor changes in capital structure but no major equity raises or dilution events during the period.
Notably, the report does not indicate any changes in control over group entities or adjustments to the distribution reinvestment plan, suggesting a steady operational footing despite the financial setbacks.
Outlook and Market Implications
While the report refrains from detailed commentary on the causes of the loss or future outlook, the maintenance of dividends amid asset value declines may hint at management’s confidence in the group’s medium-term recovery prospects. Investors will be watching closely for further updates in the upcoming full-year results and any strategic initiatives aimed at stabilising or growing the portfolio.
Executive Chairman Matthew Madsen and Head of Treasury Paul Brown have authorised the release, underscoring the group’s adherence to regulatory standards and transparent reporting practices.
Bottom Line?
Garda’s resilience in dividend payments amid losses sets the stage for a critical test of its recovery strategy in 2025.
Questions in the middle?
- What factors contributed most to the $10.19 million net loss?
- How sustainable is the current dividend given the declining asset base?
- What strategic actions will Garda take to reverse asset value declines?