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Listed real estate investment trust (REIT) the GPT Group has released half year profit results that demonstrate the continued strength of the Australian commercial, retail and logistics sector.
The company delivered a net profit after tax of $728.5 million for the 6 months to 30 June 2018, down 3.0 per cent on the prior corresponding period.
The profit included almost $290 million of funds from operations (FFO) - an increase of 3.2 per cent - and over $450 million from valuation regains.
The GPT Group, one of Australia’s largest diversified property groups, owns and manages a $21.5 billion portfolio of offices, logistics, business parks and shopping centres across Australia.
GPT's Chief Executive Officer Bob Johnston said the Group remained on track to meet its guidance of FFO per security and distribution per security growth of 3 per cent for financial year 2018.
"The half year result was driven by strong valuation gains across the Group's investment portfolio, particularly in office, which benefitted from strong market rental growth," said Mr Johnson.
Johnson reaffirmed the company's commitment to advancing the development of its existing portfolio, including a 26,000 sq m office tower in Parramatta which is anticipated to commence construction by the end of this year.
The $300 million tower, the latest addition to Parramatta's burgeoning commercial office market, will commence shortly following the pre-commitment to QBE for 51 per cent of the building.
GPT is also pressing ahead with the $420 million expansion of Sunshine Plaza, in which GPT has a 50 per cent interest, which is due for completion in the second quarter of 2019.
Located in Maroochydore, Sunshine Plaza is already the largest centre on the Sunshine Coast, and will expand the centre from 73,000 sq m to over 107,000 sqm.
It is jointly owned by the Australian Prime Property Fund Retail (APPF Retail) and The GPT Group, and managed by Lendlease.
Related: $400m Sunshine Plaza Reveals 34,000 Square Metres Of Additional Retail Space
"The Group's results reflect excellent asset performance, a strong financial position and continued progress on its development pipeline," Mr Johnson said.
