GPT First-Half Profit Falls on Drop in Retail Property Income Australia’s second-biggest diversified real estate trust, said first-half profit fell 6.7 percent as operating income from its retail properties dropped. Net income slid to A$257 million ($236 million) in the six months ended June 30, from A$275.5 million a year earlier, the Sydney-based company said in a statement to the Australian stock exchange. Net operating income in its retail property division slipped to A$139.6 million from A$160.4 million a year ago. The company, which in May withdrew its bid for rival Australand Property Group (ALZ)’s commercial real estate division, is seeking to reduce its exposure to retail properties, and has about A$2 billion of capacity to acquire office and industrial assets, Managing Director Michael Cameron said in a June interview. It is also creating a new industrial property fund and one targeting individual investors as it seeks to boost funds management, he said at the time. “While GPT remains cautiously optimistic about the second half of 2013, it is clear that market fundamentals have softened in the past six months,” Cameron said in today’s statement. “GPT has been effective in meeting these market challenges by focusing on actively managing its portfolio. This, together with fixed rental increases, provides a strong base for income growth.” Net tangible assets climbed to A$3.76 a share in the first half, compared with A$3.73 a year ago, the company said. Operating income rose to A$236.5 million from A$227.2 million a year ago, driven by its office and industrial units, according to the statement. The company will pay a dividend of 10.1 Australian cents for the half, it said. GPT is on track to deliver earnings per share growth of at least 5 percent for the year ending Dec. 31, it said. To contact the reporter on this story: Nichola Saminather in Sydney at [email protected]
Posted on: Mon, 12 Aug 2013 01:43:51 +0000
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