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GPT Group net profit dips 40%, payout up

Alex Druce
Lower property valuation gains helped push GPT Group's profit down 40 per cent to $880 million

Property developer GPT Group has boosted its full-year payout and beaten guidance for funds from operations but the firm's net profit has dipped 40 per cent to $880 million on lower property valuation gains.

The property firm on Monday said profit was down from $1.45 billion a year ago when it recorded $910.7 million in valuation gains on its portfolio, compared with just $342.2 million in gains this year.

Revenue and other income fell by 27 per cent to $1.38 billion in the year to December 31, though funds from operations increased 6.4 per cent to $613.7 million to deliver above-guidance FFO per-security growth of 2.6 per cent.

GTP also increased its final distribution to security-holders to 13.37 cents per share, up from 12.3 cents a year ago, making for a full-year distribution of 26.48 cents a share.

The company in June raised $867 million to increase its stake in the Darling Park and Cockle Bay Wharf complex in Sydney, which it said would help underpin its next phase of growth.

Chief executive Bob Johnston said the firm was also making solid progress in growing its logistics portfolio.

"The addition of three new development sites in our core markets of Sydney and Melbourne, combined with projects currently underway, provides the group with the opportunity to deliver more than 550,000 square metres of new prime logistics facilities with an estimated end value on completion in excess of $1 billion," Mr Johnston told the ASX.

GPT also flagged a further 3.5 per cent increase in its distribution for the FY20 year, as well as a 3.5 per cent increase in funds from operations.

Shares in the company were 0.16 per cent higher at $6.18 by 1053 AEDT - only marginally higher than $6.11 a year ago - though the company continues to recover from a share price decline in the back half of 2019.

GPT shares have grown by 10.2 per cent in 2020 so far.

GPT GROUP'S FULL-YEAR RESULT

* Revenue down 27pct to $1.38bn

* Net profit down 40pct to $880m

* Funds from operations up 6.8pct to $613.7m

* Shareholder distribution 13.37 cents per share, up from 12.3 cents a year ago.