The GPT Group 2015 interim results

Interviews

by Carolyn Herbert

Transcription of Finance News Network Interview with The GPT Group (ASX:GPT) CEO and Managing Director, Michael Cameron
 
 
Carolyn Herbert: Hello I’m Carolyn Herbert from the Finance News Network and joining me from the GPT Group (ASX:GPT), to discuss its interim results is CEO and Managing Director, Michael Cameron. Michael, welcome back.
 
Michael Cameron: Thanks Carolyn, great to be here.
 
Carolyn Herbert: Now you’ve just announced your interim results for financial year 2015. What were the highlights?
 
Michael Cameron: We were very pleased with the outcome, it was $421.9 million net profit and that’s a 75 per cent increase on last year. That means the EPS was up 6.7 per cent and our total return for the period, 11.3 per cent. So a great result.
 
Carolyn Herbert: What was behind the increase in earnings per security?
 
Michael Cameron: We had a very strong performance from the portfolio; it was up 4.6 per cent. We also saw strong returns from the funds management business, which also saw a good growth.
 
Carolyn Herbert: What was the first half distribution?
 
Michael Cameron: The first half distribution was 11 cents per security. But together with all of the distributions that have been made since I joined in 2009, it comes to $2.2 billion worth of dividends to our security holders.
 
Carolyn Herbert: Taking a look at the different businesses now and funds management has delivered strong results, over a number of years. What has the recent performance been like?
 
Michael Cameron: The performance of the funds continues to be outstanding. GWOF, which is the office fund, saw a number one performance against its peers and that’s over one, three and five years. And the shopping centre fund was number two against its peers and outperformed the index, by about 50 basis points.
 
Carolyn Herbert: Now to retail, retail forms a bulk of GPT’s portfolio. How’s the retail portfolio performing and what has driven the result?
 
Michael Cameron: The retail performance has been outstanding; it’s been quite a surprise actually, a 5.9 per cent increase in sales across the whole portfolio, and that’s been the strongest result that we’ve seen, for over a decade. So we’ve been very pleased and all of the other metrics associated with that business, have also been positive.
 
Carolyn Herbert: How are the office and the logistics portfolios tracking?
 
Michael Cameron: Most of the portfolio is along the eastern seaboard, so we’ve enjoyed good rental growth. And year on year, the office portfolio has delivered an 8.1 per cent like-for-like income growth, which is sensational in this current environment. In logistics, we finished about $300 million worth of product in the last six months. So we’re very pleased with that as well.
 
Carolyn Herbert: Now to the second half, what’s GPT’s full year forecast for EPS growth and total return?
 
Michael Cameron: This morning we provided guidance for the full year of EPS growth, of between five and six per cent. And we also said that we were very confident of achieving a total return, of in excess of nine per cent.
 
Carolyn Herbert: This result is your last as CEO and Managing Director. What are you most proud of during your time?
 
Michael Cameron: I think over the last six years, I was certainly very proud of the turnaround and rebuilding the confidence and the trust that the investors and our customers, and our staff have in the organisation. But we’ve also built a very strong platform, both around the logistics development and also the funds management business that the new incoming CEO, can leverage off.
 
Carolyn Herbert: For those who aren’t familiar with your successor Bob Johnston, what experience will Bob bring to the role?
 
Michael Cameron: Bob Johnston’s a seasoned property professional. He’s had wonderful experience over a broad range of sectors, both here and also overseas. So he’s perfect for the role. He’s also a really strong cultural fit for the organisation, so I think it’s onwards and upwards for Bob.
 
Carolyn Herbert: Michael Cameron, thank you for the update and best of luck in your new role.
 
Michael Cameron: Thanks Carolyn, great to join you today.
 
 
Ends
 

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