Why the GPT (ASX:GPT) share price is backtracking today

The company revealed COVID-19 is hampering its performance…
The post Why the GPT (ASX:GPT) share price is backtracking today appeared first on The Motley Fool Australia. –

The GPT Group (ASX: GPT) share price is starting the week in negative territory on Monday morning. This comes after the property investment company announced an update on its earnings and distribution guidance for FY21.

At the time of writing, GPT shares are swapping hands for $4.64, down 2.32%. In comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.1%, sitting at 7,394 points.

What did GPT announce?

In today’s statement, GPT advised that it has withdrawn its Funds From Operations (FFO) and distribution guidance for 2021.

The 12-month period to 31 December remains uncertain given the nature of COVID-19 and the associated state government measures taken. This is in particular to Melbourne and Sydney, where there is no timeline in which the states will ease restrictions.

Founded in 1971, GPT is a property investment company. The group owns and manages a diversified portfolio of Australian retail, office and logistics property assets.

GPT CEO, Bob Johnston commented on the company’s outlook:

In line with strengthening economic conditions, we have seen a strong recovery across our retail portfolio during the course of the first six months of this year. However, given the recent restrictions in both Sydney and Melbourne and the uncertainty as to when these restrictions will be lifted and the ongoing risk of additional measures, we believe it is prudent to withdraw FFO and distribution guidance for the full year.

GPT has a high-quality diversified portfolio, an exceptionally strong balance sheet and liquidity position, and we expect that we will see a recovery once normal trading conditions resume as we have experienced previously.

The company will release its 2021 interim results on 16 August along with providing a trading update on business performance.

About the GPT share price

It has been a mixed 12 months for GPT shares, rising in November 2020 and then backtracking in February. Since then, the company’s share price has gradually trekked upwards, reaching a 52-week high of $4.99 last month.

At today’s price, GPT commands a market capitalisation of roughly $9 billion, with more than 1.9 billion shares on issue.

The post Why the GPT (ASX:GPT) share price is backtracking today appeared first on The Motley Fool Australia.

Should you invest $1,000 in GPT right now?

Before you consider GPT, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and GPT wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

ASX 200 travel shares face new headwinds as Kiwi bubble policy tightens

BetMakers (ASX:BET) share price up on record results
Boral (ASX:BLD) share price edges lower on divestment news
Why the Core Lithium (ASX:CXO) share price is charging 5% higher today
Oil Search (ASX:OSH) share price falls as boss demands bigger ‘diamond’

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!