CANBERA (dpa-AFX) - GPT Group (GPT.AX, GPTGF.PK), in its operational update for the quarter ended 31 March 2022, said that office leasing enquiry was relatively subdued during the quarter but is expected to improve as businesses seek out high quality space to help encourage staff back to the workplace.
The company noted that the leasing market remains competitive, but it anticipates that leasing activity will continue to improve during the course of the year as conditions normalise. GPT's office portfolio occupancy remained relatively stable during the quarter.
GPT's Chief Executive Officer, Bob Johnston, said that the company continues to be well placed to deliver on earnings and distribution growth in 2022. Despite the impacts of Omicron during January and February, retail sales are recovering with March sales across portfolio generally well above 2019 levels with the main exception being Melbourne Central.
Johnston anticipates Melbourne Central will continue to recover during the course of the year as the CBD is reactivated.
Retail portfolio occupancy was 99.2% at 31 March 2022, with solid leasing enquiry translating to 231 lease deals during the quarter.
Office portfolio occupancy at 31 March 2022 was 92.0%, with a weighted average lease expiry (WALE) of 4.9 years.
GPT continues to expect 2022 funds from operations to be in the range of 31.7 to 32.4 cents per security and a distribution of 25.0 cents per security.
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