GPT Reports 38% Revenue Growth, $200.7M Net Loss for 2024
The GPT Group reported a strong 38.4% increase in total revenues for 2024 but posted a net loss after tax of $200.7 million. Despite this, the property trust declared a 12.00 cent distribution per stapled security, signaling confidence in its underlying operations.
- Total revenues and other income rose 38.4% to $616.3 million
- Profit from operations increased 2.6% to $445.8 million
- Net loss after tax attributable to stapled security holders widened 16.4% to $200.7 million
- Declared distribution of 12.00 cents per stapled security for December 2024 half
- Net tangible assets per security declined from $5.61 to $5.27
Robust Revenue Growth Amid Challenging Market Conditions
The GPT Group, a leading Australian property trust, has released its Appendix 4E and annual financial report for the year ended 31 December 2024, revealing a mixed financial performance. Total revenues and other income surged by 38.4% to $616.3 million, reflecting strong operational momentum despite a complex economic backdrop.
Profit from operations, as assessed by the Directors and representing Funds from Operations (FFO), also edged higher by 2.6% to $445.8 million. This metric is a key indicator of GPT’s underlying and recurring earnings, adjusted for non-cash and capital items, and suggests resilience in its core property portfolio.
Net Loss Raises Questions on Underlying Challenges
However, the headline net loss after income tax attributable to stapled security holders widened by 16.4% to $200.7 million. This loss contrasts with the operational profit gains and points to significant non-operational or one-off charges impacting the bottom line. The report notes impairment losses related to uncollected trade receivables and equity accounted investments, which contributed to the negative result.
Notably, GPT’s share of after-tax losses from associates and joint ventures deepened substantially, with a total loss of $286.2 million compared to $182.3 million the previous year. This deterioration in joint venture performance, including entities such as the GPT Wholesale Shopping Centre Fund and GPT Wholesale Office Fund, has weighed heavily on consolidated earnings.
Distribution Maintained Despite Earnings Pressure
In a move that underscores management’s confidence in cash flow stability, GPT declared a distribution of 12.00 cents per stapled security for the six months ended 31 December 2024, consistent with the prior half. This distribution is franked and is scheduled for payment on 28 February 2025. However, the distribution reinvestment plan (DRP) will not be available for this payment, a notable change for investors accustomed to reinvesting dividends.
Net tangible assets per security declined to $5.27 from $5.61 a year earlier, reflecting the impact of impairments and market conditions on asset valuations. GPT’s balance sheet remains a focal point for investors assessing the sustainability of distributions and future growth prospects.
Looking Ahead: Navigating Uncertainty in Property Markets
GPT’s results highlight the dual realities facing large property trusts in 2024: operational strength amid revenue growth, counterbalanced by significant valuation pressures and losses from joint ventures. The company’s ability to maintain its distribution payout despite these headwinds will be closely watched by the market.
Investors will be keen to see how GPT manages its portfolio and joint venture exposures in 2025, particularly as economic conditions and property market dynamics evolve. The detailed annual financial report and auditor’s review provide further insights into the company’s financial position and strategic direction.
Bottom Line?
GPT’s revenue growth masks deeper challenges, making 2025 a pivotal year for its financial resilience and distribution sustainability.
Questions in the middle?
- What specific factors drove the significant net loss despite higher operational profits?
- How will GPT address the losses from its associates and joint ventures moving forward?
- What are the implications of suspending the distribution reinvestment plan for investor confidence?
