Garda Property Group - FY24 Financial Results and Strategic Update
GARDA PROPERTY GROUP (GDF) Share Update July 2024 Wednesday 31st
Garda Property Group Announces FY24 Financial Results
Garda Property Group (ASX: GDF) has released its financial results for the fiscal year 2024, outlining significant developments in its portfolio and strategic initiatives.
Instant Summary:
- FY24 distributions of 6.3 cents per security.
- Net Tangible Assets (NTA) per security at $1.71.
- FFO payout ratio at 97.5%.
- 36.5% gearing with 69% of debt hedged.
- Complete exit from Melbourne office portfolio at a 21% discount to book value.
- Completion of 12,912m² Richlands industrial facility.
- Commencement of 14,777m² industrial built form at Acacia Ridge.
Financial and Operational Highlights
Garda Property Group reported FY24 distributions of 6.3 cents per security and a Net Tangible Assets (NTA) per security of $1.71. The Funds From Operations (FFO) payout ratio stood at 97.5%, and the group maintained a gearing ratio of 36.5%, with 69% of its debt hedged.
The group successfully exited its Melbourne office portfolio, generating $104.1 million in proceeds, which were used to partially repay debt. This exit was completed at a 21% discount to the book value. The sale marks Garda's strategic shift towards becoming a pure-play industrial REIT, with the Cairns Corporate Tower being the only remaining office property in its portfolio.
Industrial Developments
Garda completed the 12,912m² Richlands industrial facility in December 2023, which is now under a 10-year lease providing $1.8 million in annualised income. Additionally, construction commenced on the 14,777m² industrial built form at Acacia Ridge, expected to be completed by December 2024. The group also completed earthworks and commenced civil works on a 25-hectare Brisbane industrial estate at North Lakes, with practical completion expected in Q1CY25.
Capital Management
Garda undertook proactive capital management initiatives, including an on-market security buyback where 9.6 million securities were purchased at an average price of $1.21 per security, representing a 30% discount to NTA per security. The buyback has been extended through to April 2025. Additionally, the group reduced its debt facility limit by $20.0 million and restructured a $50.0 million interest rate swap, benefiting FY25 FFO.
Increased Lending Activities
Garda increased its lending activities, with $26.2 million in deployed loans as of June 2024, contributing 12% of FY24 Group revenue. The group anticipates an increased contribution from lending activities for FY25.
The financial results and strategic initiatives announced by Garda Property Group are likely to have a positive impact on the company's stock. The shift towards a pure-play industrial REIT and the completion of key industrial projects demonstrate strong operational execution. The proactive capital management and increased lending activities further enhance the group's financial stability and growth prospects.
Investor Reaction:
Analysts are likely to react positively to Garda's strategic shift and successful execution of key projects. The complete exit from the Melbourne office portfolio and the focus on industrial developments align with market trends favoring industrial assets. The proactive capital management and increased lending activities are also expected to be well-received by investors.
Conclusion:
Investors should closely monitor Garda Property Group's ongoing industrial developments and capital management initiatives. The group's strategic focus on industrial assets and increased lending activities position it well for future growth. Subscribe to our newsletter for regular updates on Garda Property Group and other stock market news.