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

The GPT Group (ASX: GPT) share price is slipping in negative territory after announcing a earnings and guidance update for FY21.
The post Why the GPT (ASX:GPT) share price is sliding today appeared first on The Motley Fool Australia. –

A mature aged man looks unsure, indicating uncertainty around a share price

The GPT Group (ASX: GPT) share price is slipping into negative territory today after the company announced an update on its earnings and distribution guidance for FY21.

At the time of writing, GPT shares are backtracking 1.3% to $4.75.

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 also manages three funds, the GPT Wholesale Office Fund (GWOF), the GPT Wholesale Shopping Centre Fund (GWSCF) and the GPT Metro Office Fund (GMF).

What did GPT announce?

In today’s release, GPT advised that it expects to deliver an increase in both funds from operations (FFO) and distribution per security (DPS) metrics for FY21. It stated that FFO per security is set to grow 8%, with DPS soaring 12% when compared to FY20.

The guidance statement from the company’s assessment that the current economic climate continues to recover. GPT noted that any significant disruptions from COVID-19 could derail its projections for the remainder of the year.

What did the CEO say?

GPT CEO Bob Johnston touched on the company’s recovery and outlook, saying:

It is pleasing to see Australia’s economy continuing to benefit from the post COVID-19 recovery and the disruption to our operations is abating. While risks remain, including the speed of recovery of our Melbourne Central Shopping Centre and further COVID-19 related disruptions, trading conditions over the first quarter have provided us with sufficient confidence to announce earnings and distribution guidance for the 2021 full year.

The group’s high-quality portfolio has proved resilient throughout the pandemic. Consumer confidence continues to be strong driving foot traffic at our shopping centres, office utilisation is steadily increasing and demand for logistics assets remains strong reflecting the increased economic activity.

GPT share price snapshot

Over the past 12 months, the GPT share price has gained around 15%, with year-to-date sitting up roughly 5%. The company’s shares reached a 52-week high of $4.94 in mid-November 2020, before treading lower and again moving higher.

Based on valuation grounds, GPT commands a market capitalisation of about $9.2 billion, with almost 2 billion shares outstanding.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Aaron Teboneras 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.

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

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!