The GPT Group

Welcome to the GPT Group 2025 four year resource briefing. All participants are in listen only mode. There will be a presentation followed by a question and answer session. For participants connected via the phone, you would have been prompted earlier to indicate whether you wish to ask a question. If you declined at that time, you may press star at any point to be added to the queue. A reminder for those on the phone, you can dial star at any time to join the queue. I would now like to hand the conference over to Mr. Russell Prout, CEO and Managing Director. Please go ahead.

Good morning to everyone who has joined our 2025 full year results call this morning. Today I'm joined on the call by the GPT executive team. I would like to start by acknowledging the traditional custodians on which our business operates. We pay our respects to elders past and present. and honor our responsibility for country, culture, and community in the places we create and how we do business. 2025 was another year of delivering results and strategic progress for GPT. Earnings guidance was upgraded twice during the year from the levels initially communicated at the start of 2025, and ultimately we delivered $650.5 million of funds from operations, or 34 cents per security. FFO was up 5.5% on report of 2024, and after adjusting the impact of trading profits, this growth rate was even higher at 6.9%. The quality of our investment portfolio is reflected in the performance metrics. Like-for-like net property income growth of 6.3%, occupancy level of circa 98%, and an average cap rate of about 5.76%. We also made significant progress in building our investment management platform, ending the year at about $40 billion of assets under management. This contributed to nearly 11% income growth in our management operations. Now turning to the GPT platform. As illustrated, our platform structure is consistent and growing. We have scale across three lines of the largest and most investable property sectors in Australia, being retail, office and logistics. and we were active in 2025 across all these sectors and investment formats. As we expected and conveyed previously, our near-term growth has been driven by expansion in our mandates and partnerships. And as in 2025, we expect to continue to grow with existing partners, as well as through the introduction of new institutional investors to the platform. In terms of our strategy, there is no change. Firstly, we must be great at the asset level. serving our customers and supporting their success, which is why we directly manage nearly every asset across the platform. Our second pillar speaks to our focus on results and the effective utilization of capital, recognizing this is critical to truly create enduring value. And complementing this is our breadth of capability that allows us to mobilize capital and invest opportunistically to take advantage of opportunities as they arise. And lastly, aligned partnering. This is the concept of ensuring that there is true and demonstrable alignment of interest with our partners. Look, while we always seek to refine and challenge our assumptions, we see these four elements in combination as being our formula for success. Now, as far as putting strategy into action, on the next slide, we outline clear examples of how each of these pillars have together contributed to this great result in 2025. In the first column, we continue to build on existing foundations. more than 6% like-for-like investment portfolio NPI growth, with all sectors maintaining high occupancy and strong leasing spreads. This underpins the high quality and resilience of our earnings and cash flow. We demonstrated our ability to mobilize capital when opportunities arose, such as with the Grosvenor investment, as well as investing in our retail portfolio. We also raised capital for reinvestment and growth in our logistics division and in our retail fund. The value of platform breadth was evident in our ability to grow in our core sectors, whether that was taking on management of five shopping centers in three separate transactions or growing our logistics portfolio through development. And finally, the value of partnership and truly aligned partnering was reflected across multiple investments, as well as with the successful restructuring of our pooled funds. Going forward, you can expect us to continue to aggressively pursue value creation in this way, I will now hand over to our Chief Financial Officer, Maren Edwards.

Thank you, Russell, and good morning, everyone. Starting with our segment financial performance, our retail investment properties delivered strong 5.1% like-for-like growth, driven by rent reviews and positive leasing spreads. Strategic divestments resulted in headline growth of 0.8%, while enabling capital redeployment to higher return opportunities. Our office investment properties delivered robust like-for-like growth of 8.3%, driven by higher occupancy and rent reviews, plus one-off income resulting in headline growth of 11.9%. Our logistics investment properties delivered strong like-for-like growth of 5.1% from positive leasing spreads and structured rent reviews. The headline performance result of a 7% decline reflects portfolio plans to vestments with proceeds reinvested in our co-investment strategy. Co-investment net income increased 29.2%, primarily driven by the successful Perron partnership. Management operations earnings grew a solid 10.8% as new assets came under management throughout 2025. Finance costs of 219.7 million reflected increase in debt levels as a result of strategic growth initiatives during the year and a higher weighted average cost of debt. Corporate costs also increased, reflecting the full year run rate of strategic investment in talent to support our growing platform. And income tax reduced versus 2024, reflecting lower one-off non-deductible tax items in 2025. Overall, this delivered 650.5 million in funds from operations, up 5.5% from 2024, or 6.9% when excluding trading profits. ASFO delivered is 494.4 million, up 5.2% with maintenance and leasing capex, remaining elevated due to office leasing. Our expectation for 2026 is that capex will be approximately 170 million. Our statutory net profit after tax was 981 million, reflected in positive revaluation gains across the investment portfolio. Turning now to our financial position, which remains strong and flexible. During the period, we strategically grew our co-investments by 67%, primarily through $1.4 billion invested in new partnerships. Other assets have reduced by 17.9%, primarily as a result of movement in derivatives, Other liabilities have increased 18.7% as a result of movement in derivatives and of the third payment for Grosvenor. Borrowings have increased as a result of strategic transaction and development activity throughout the period. We continue to take a disciplined approach to capital management with net gearing of 31.1% within our target range of 25% to 35% and with material headroom to our 50% covenant. We have $1.2 billion of liquidity with no unfunded capital commitments and we continue to maintain our A2 Moody's and A-S&P ratings. We've been proactive in managing our debt position, extending facilities at approximately 10 basis points lower margins, increasing hedging to 72% of average drawn debt and capturing attractive October pricing to restructure hedges in line with market at the time. This disciplined approach has had the effect of reducing our forecast average cost of debt for 2026 to 5% from 5.3%. I will now pass to Mark Harrison for the investments update.