How Did Garda Property Group Cut Losses While Boosting Revenue in FY25?
Garda Property Group reported a 4.3% rise in revenue and a significant reduction in losses for FY25, alongside a modest decline in net tangible assets per security. Investors welcomed the return of dividends after a year without payouts.
- Revenue increased 4.3% to $32.1 million
- Funds from operations rose 12.9% to $15.0 million
- Loss after tax narrowed to $6.1 million from $42.9 million
- Net tangible assets per security declined 5.8% to $1.61
- Dividends and distributions paid totaling 7.2 cents per security
Financial Performance Highlights
Garda Property Group has delivered a cautiously optimistic set of results for the year ended 30 June 2025. The group reported a 4.3% increase in revenue to $32.1 million, reflecting steady operational momentum in its property investment portfolio. More notably, funds from operations (FFO) grew by 12.9% to $15.0 million, a key metric that signals improved cash flow generation from core activities.
Despite these positive trends, the group recorded a loss after tax of $6.1 million. While still in the red, this represents a substantial improvement from the $42.9 million loss posted in the prior year, suggesting that Garda is navigating its challenges more effectively.
Balance Sheet and Asset Valuations
Total assets increased by 6.0% to $599.6 million, indicating ongoing investment and growth in the property portfolio. However, net assets and net tangible assets (NTA) both declined by 6.0%, standing at $322.2 million and $200.5 million respectively. This translated into a 5.8% drop in NTA per security to $1.61, a figure closely watched by investors as a measure of underlying value.
Return to Dividends
After a year without distributions, Garda reinstated dividends and distributions totaling 7.2 cents per security for FY25. This move is likely to be welcomed by income-focused investors, signaling confidence from management in the group’s cash flow stability. The dividends were fully franked, enhancing their attractiveness in the Australian tax context.
Outlook and Governance
The FY25 Annual Report was audited with an unmodified opinion, providing assurance on the integrity of the financial statements. While the report did not include forward guidance or detailed commentary on cost pressures, the improved operational metrics and dividend payments suggest a cautious but positive trajectory. Investors will be keen to see how Garda manages asset valuations and continues to improve profitability in the coming year.
Bottom Line?
Garda’s FY25 results mark a turning point with stronger cash flows and dividends, but asset value pressures and losses remain key watchpoints.
Questions in the middle?
- What strategies will Garda implement to return to consistent profitability?
- How will the group address the decline in net tangible asset value per security?
- Will dividend payments be sustainable amid ongoing market uncertainties?