GPT first-half profit surges 39pc

Property group GPT has lifted its full-year forecast after its interim profit jumped to $586.4m.

GPT chief Bob Johnston.

Shares in property group GPT lifted 1 per cent after it reported a near 40 per cent surge in net profit in the first-half, and as it raised its guidance for the full year.

The company (GPT) said net profit bounded 39 per cent to $586.4 million in the six months to June 30, while funds from operations per security lifted 6.1 per cent to 15.2 cents as positive revaluations of $380 million were realised.

The strong numbers have brought about a positive revision to full year guidance, with GPT now anticipating FFO per security growth of 5 to 5.5 per cent, up from the 4 per cent predicted in February.

“Valuations, particularly in the office portfolio, continue to strengthen on the back of investment demand and improving market fundamentals,” chief executive Bob Johnston said.

“The underlying performance of the investment portfolio continues to be strong, enhanced by our exposure to the positive conditions in the Sydney and Melbourne markets.”

GPT added its comparable income growth came in at 3.8 per cent across the portfolio.

At 11am (AEST), GPT shares traded up 1 per cent at $5.545.