This report does not constitute a rating action. MELBOURNE (S&P Global Ratings) Feb. 19, 2024--We expect the broad geographic and asset diversity of Australia-based property company GPT Group to offset the impact of rising interest rates and challenging office market conditions at the current rating level. Office market conditions will remain difficult and GPT's interest costs will continue to rise over the next 12 months. However, we expect the company's funds from operations-to-debt ratio to trend between 11%-11.5%. This is more than the 9% that we expect for the rating (A-/Stable/A-2). GPT's exposure to the retail and logistics sectors provides an important offset to prevailing weakness in the office sector. GPT's retail portfolio, which is the largest contributor to group
