The GPT Group (ASX:GPT) used its 2025 full-year results call to outline upgraded earnings delivered in 2025, further platform expansion, and guidance for another year of growth in 2026. CEO and Managing Director Russell Proutt said guidance was upgraded twice during the year and GPT ultimately delivered funds from operations (FFO) of AUD 650.5 million, or AUD 0.34 per security, up 5.5% on reported 2024. Excluding the impact of trading profits, FFO growth was 6.9%.
Proutt said portfolio quality was reflected in “like-for-like net property income growth of 6.3%,” occupancy “circa 98%,” and an average cap rate of about 5.76%. He also highlighted progress building the investment management platform, with assets under management (AUM) ending the year at about AUD 40 billion, contributing to nearly 11% income growth in management operations.
FY2025 segment performance and statutory profit
Logistics investment properties posted 5.1% like-for-like growth from positive leasing spreads and structured rent reviews, but headline net income declined 7% due to planned divestments, with proceeds reinvested into GPT’s co-investment strategy. Edwards said co-investment net income increased 29.2%, “primarily driven by the successful Perron partnership,” while management operations earnings rose 10.8% as new assets came under management.
Edwards said finance costs rose to AUD 219.7 million reflecting higher debt levels tied to strategic growth initiatives and a higher weighted average cost of debt. Corporate costs increased due to “the full-year run rate of strategic investment in talent.” Adjusted funds from operations (AFFO) were AUD 494.4 million, up 5.2%, with maintenance and leasing capital expenditure elevated due to office leasing activity. GPT expects CapEx of approximately AUD 170 million in 2026.
Statutory net profit after tax was AUD 981 million, which Edwards attributed to positive revaluation gains across the investment portfolio.
Balance sheet, debt, and hedging
Edwards said GPT’s financial position remained “strong and flexible.” Co-investments increased 67% during the period, primarily from AUD 1.4 billion invested in new partnerships. Net gearing finished at 31.1%, within GPT’s 25% to 35% target range, with headroom to a 50% covenant. GPT reported AUD 1.2 billion of liquidity and no unfunded capital commitments, and said it maintained A2 (Moody’s) and A- (S&P) credit ratings.
The company highlighted active debt management including extending facilities at about 10 basis points lower margins and increasing hedging to 72% of average drawn debt. Edwards said these steps reduced forecast average cost of debt for 2026 to 5% from 5.3%. In Q&A, management said group-level refinancing achieved average margins around 115 basis points on about AUD 1.5 billion of group debt, while lending margin across group debt was about 160 basis points.
On interest rate sensitivity, Edwards said GPT’s 2026 guidance assumes no further rate rises, adding that an interest rate rise in August would have a “small impact of about AUD 2 million.”
Investment activity, valuations, and partnering
Head of Investments Mark Harrison said GPT’s AUD 16.1 billion investment portfolio increased in value by AUD 308.5 million, or 2%, over the 12 months to 31 December. The uplift was “primarily driven by income returns,” with the weighted average cap rate and discount rate largely stable at 5.76% and 7.04%, respectively. Harrison said GPT continued to see prime assets outperform, while the office market remained “asset and market-based” with an ongoing flight to quality.
Harrison said GPT completed AUD 4.9 billion of gross transactions across the platform in 2025, including acquisition of 50% partnership interests in Grosvenor Place in Sydney and Perron retail assets, divestment of non-core fund assets to provide investor liquidity, and repositioning of investments across balance sheet, pooled funds, and mandates. He also discussed investor engagement in pooled funds, including equity raised for GWSCF and a restructured liquidity regime for GWAF, noting both funds have outperformed their MSCI benchmarks over one-, three-, and five-year periods.
Operating updates across retail, office, and logistics
Head of Retail Chris Barnett described 2025 as an “exceptional year” and said retail AUM increased by AUD 5 billion with the integration of five new assets over five months. The retail platform ended the year with 18 shopping centers totaling AUD 16.6 billion of AUM. Barnett said GPT delivered its 12th consecutive quarter of positive leasing spreads, with total center sales up 4.2% and specialty sales up 5.3% for the year. Specialty productivity reached almost AUD 13,800 per square meter, and total center occupancy was 99.8%. Leasing spreads were about 5% across 565 deals.
Barnett said GPT commenced redevelopment at Rouse Hill Town Centre and received board approval to start a redevelopment at Melbourne Central. He said the Melbourne Central redevelopment is expected to add about 7,500 square meters and cost around AUD 170 million, with completion targeted by mid-2028. In Q&A, Barnett said GPT would look for 30% to 40% pre-commitment before commencing the Melbourne Central development.
Office executive Matt said 2025 marked a “year of transformation” across GPT’s office platform. Office AUM grew to AUD 17 billion, driven by the Grosvenor Place acquisition in December 2025 and positive revaluations. The office portfolio delivered like-for-like NPI growth of 8.3%, which he called the strongest result in 10 years. GPT secured about 136,000 square meters of new leasing (including heads of agreement) across 137 transactions and achieved early leasing at Grosvenor Place with 6,000 square meters of post-settlement transactions. Leasing spreads were 7.2% and incentives continued to trend downward. Comparable occupancy excluding Grosvenor Place increased from 94.7% to 95.6%.
On Grosvenor Place, management said vacancy was around 30% and GPT is assuming a 12- to 30-month let-up period post-settlement. Matt said active inquiry at the asset was roughly 20,000 square meters. In response to questions on occupancy disclosure, he said GPT has aligned its occupancy disclosures with peers and stopped disclosing “actual rent-paying occupancy,” while noting the typical lag between signed and rent-paying occupancy is about 300 to 400 basis points.
Chris Davis said GPT’s AUD 4.9 billion logistics platform includes 69 investment assets and a AUD 3 billion development pipeline, with over AUD 400 million of developments underway. Comparable income growth was 5.1% and leasing totaling 188,000 square meters was agreed in 2025, with face leasing spreads of 28% (34% in Sydney and Melbourne). Davis said incentives had normalized into the “early 20s” range and development returns were “in that sort of 6%–6.5% range yield on cost.”
FY2026 outlook and guidance
Proutt said GPT expects to remain an active investor and “aggressively pursue value creation.” Barring unforeseen circumstances, GPT guided to 2026 FFO growth of approximately 4% to AUD 0.354 per security. Excluding trading profits, GPT said this implies 5.7% growth above 2025 earnings. GPT also guided to 2026 distributions of AUD 0.245 per security, representing a 2.1% increase over 2025.
In Q&A, management provided additional color on guidance drivers, indicating an expectation of “north of 5% like-for-like growth” across investment properties and co-investments, and highlighted the impact of a “-AUD 5 million–AUD 6 million revenue hit” related to a restructure referenced as “Guam.” Management also said it expected the earnings profile in 2026 to be relatively even across the year, while noting CapEx typically skews to the second half.
About The GPT Group (ASX:GPT)
GPT is a vertically integrated diversified property group that owns and actively manages a portfolio of high quality Australian retail, office and logistics assets, with assets under management of $32.4 billion. The Group utilises its real estate management platform to enhance returns through property development and funds management.
