GDI Delivers 22% FFO Growth Amid Robust Leasing and Strategic Asset Sales

Strong Financial Performance

GDI Property Group has unveiled a robust set of results for the year ended 30 June 2025, demonstrating solid growth across key financial metrics. The company’s Property Funds From Operations (FFO) surged 22% to $50.8 million, contributing to a 20% rise in total FFO compared to the previous year. This uplift was driven by increased leasing activity and higher contributions from flagship assets such as the Westralia Square complex and the Mill Green precinct.

Net profit attributable to securityholders swung positively to $35.6 million, a marked improvement from a loss of $6.9 million in FY24. Revenue from ordinary activities climbed nearly 18%, underpinned by a $9.2 million increase in property revenue and net fair value gains on investment properties totaling $20.8 million.

Leasing Momentum and Asset Management

Leasing activity remained vigorous, with over 32,000 square metres of lettable area leased, renewed, or under Heads of Agreement during FY25. This includes more than 21,000 square metres of office space spanning both the Property and Funds Management divisions. The occupancy rate across consolidated assets now stands at a healthy 88.2%, reflecting effective tenant retention and attraction strategies.

GDI’s disciplined capital expenditure approach focused on subdividing floors and repurposing existing fitouts, which has proven successful in reducing tenant incentives and accelerating lease commencements. The company also continued to capitalise on embedded growth opportunities in key precincts such as Mill Green in Perth and Broadmeadow in Newcastle.

Strategic Asset Sales and Balance Sheet Strength

During the year, GDI sold over $180 million in assets from its Funds Management Division, notably including the $163.8 million sale of 6 Sunray Drive in Innaloo, Perth. These transactions have generated liquidity for investors and delivered an approximate 9% internal rate of return per annum for the relevant trust. Post balance date, the company exchanged contracts to sell six dealerships in the Autoleague portfolio for $74 million, with settlement expected in early 2026.

On the balance sheet front, GDI maintained stable gearing at 34%, with a Loan to Value ratio well within covenant limits at 41%. The net tangible asset (NTA) per security increased slightly to $1.20, supported by revaluations of wholly owned assets and a weighted average capitalisation rate of 6.7%. The company also strengthened its debt profile by increasing and extending its syndicated facility to $426.5 million, enhancing financial flexibility.

Distribution and Outlook

GDI declared a cash distribution of 2.50 cents per security for the six months ended 30 June 2025, bringing total distributions for FY25 to 5.00 cents per security. Looking ahead, the company reaffirmed its intention to maintain a 5.00 cents per security distribution for FY26, subject to no material changes or unforeseen events. It noted that distributions may be paid wholly or partly out of capital, a factor investors should monitor closely.

The outlook remains focused on driving leasing activity to maximise asset values, pursuing capital recycling opportunities, and exploring growth initiatives within the existing portfolio. With a strong start to FY26 and a solid financial foundation, GDI appears well positioned to continue delivering value to its securityholders.