GPT Reports $257m Adjusted Funds from Operations, 98.5% Occupancy
The GPT Group has delivered a robust 2025 interim result, reporting solid income growth and a strong balance sheet, while announcing a significant equity raise to fuel future expansion.
- 5.8% like-for-like net property income growth
- $257.4 million adjusted funds from operations
- Portfolio occupancy at 98.5%
- $500 million equity raise underway
- Sustainability milestones including carbon neutrality achieved
Strong Financial Performance
The GPT Group has reported a solid set of interim results for the first half of 2025, underscoring its position as a leading diversified real estate investment manager in Australia. Adjusted funds from operations (AFFO) stood at $257.4 million, with funds from operations (FFO) per security rising to 16.8 cents, reflecting a 5.8% like-for-like net property income growth across its portfolio. This growth was supported by strong occupancy rates, which remained high at 98.5%, and a modest portfolio valuation uplift of 0.3%.
Diversified Portfolio and Strategic Expansion
GPT’s portfolio spans retail, office, logistics, and living sectors, with total assets under management (AUM) reaching $36.6 billion. The group has continued to expand its management platform, transitioning five new shopping centres valued at approximately $5 billion into its retail management portfolio. Notably, the Macquarie Centre management transition was completed in August 2025, enhancing GPT’s retail footprint.
In logistics, GPT has partnered with QuadReal to establish a new $1 billion 80/20 logistics partnership, seeded with around $460 million of balance sheet assets. This move aligns with GPT’s strategy to surface capital from balance sheet assets and reinvest in new growth opportunities. The group also announced a $500 million equity raise aimed at supporting future growth initiatives, signaling confidence in its strategic direction.
Operational Highlights and Market Position
Operationally, GPT reported strong leasing spreads across sectors, with logistics leasing spreads notably at 37%, reflecting robust demand. The office segment saw a 6.5% like-for-like net property income growth, supported by improved occupancy and tenant demand. Retail sales momentum is expected to continue, underpinned by limited new retail centre supply and high occupancy rates.
The group’s balance sheet remains strong, with net gearing at 30.7% and liquidity of $1.0 billion. Despite a slight increase in net finance costs due to higher borrowing rates, GPT maintains a comfortable interest cover ratio of 3.9 times, reflecting prudent financial management.
Sustainability and Future Outlook
GPT continues to lead on sustainability, achieving carbon neutrality across 100% of its wholly owned and managed assets as of December 2024. The group also boasts high NABERS energy and water ratings, reinforcing its commitment to embedding scalable sustainability solutions that enhance long-term portfolio value.
Looking ahead, GPT expects to deliver funds from operations of no less than 33.2 cents per security for the full year 2025, representing at least 3% growth on the prior corresponding period. This guidance, combined with ongoing development projects and strategic partnerships, positions GPT well for sustained growth in a competitive real estate market.
Bottom Line?
GPT’s interim results and strategic initiatives set the stage for continued growth, but investors will watch closely how the equity raise and new partnerships translate into long-term value.
Questions in the middle?
- How will the $500 million equity raise impact GPT’s capital structure and future acquisitions?
- What are the risks associated with the new logistics partnership with QuadReal amid evolving market conditions?
- How sustainable is the current leasing momentum across retail and office sectors given economic uncertainties?