GPT Group - S&P Global Ratings’ Credit Research

GPT Group

GPT Group - S&P Global Ratings’ Credit Research
GPT Group
Published Apr 28, 2021
15 pages (5355 words) — Published Apr 28, 2021
Price US$ 500.00  |  Buy this Report Now

About This Report


The stable outlook on GPT reflects our expectation that the group will over the next 12-24 months continue to grow its high-quality asset base in line with its diversified strategy, produce solid rental income, and adopt a moderate operating strategy. We believe GPT's commitment to disciplined financial policies and financing strategy will help the group maintain the ratio of FFO to debt at more than 12% and of adjusted net debt to adjusted total tangible assets at less than 35%. We could lower the rating if GPT's investment portfolio underperforms our expectations, or management adopts a less-diversified operating strategy. Downward pressure could also occur if GPT purchases weaker quality assets, or increases development activity that weaken its business risk profile.

Brief Excerpt:

...GPT Group's diversified asset portfolio provides a cushion against the adverse earnings impact of COVID-19 although leverage could increase in 2021. Similar to other retail landlord peers, the group's retail assets were materially impacted by widespread and prolonged lockdown restrictions during 2020. Funds from operations (FFO) of the retail business were about 31% lower than 2019; although GPT's group FFO was cushioned by increases across the office, logistics and funds management segments. We expect strong recovery signs exhibited to date in the retail sector and positive outlook of the logistics assets to restore GPT's earnings in 2021 to 2019 levels. Despite recovery in group earnings, we expect leverage to increase in 2021 as the group executes on its A$5.1 billion development pipeline (inclusive of funds' share). GPT's gearing to remain within the company's 25%-35% target range despite increasing. GPT's net gearing (ratio of adjusted net debt to adjusted total tangible assets) increased...

Report Type:

Full Report

Global Issuers, Structured Finance
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GPT Group – 2021/01/13 – US$ 500.00

GPT Group – 2019/12/17 – US$ 500.00

GPT Group – 2018/07/24 – US$ 500.00

Summary: GPT Group – 2018/07/24 – US$ 225.00

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S&P Global Ratings’ Credit Research. "GPT Group" Apr 28, 2021. Alacra Store. Jan 27, 2022. <>
S&P Global Ratings’ Credit Research. (). GPT Group Apr 28, 2021. New York, NY: Alacra Store. Retrieved Jan 27, 2022 from <>
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