At A$5.608 per share, GPT Group (ASX: GPT) appears reasonably valued based on its current property portfolio and FY26 earnings guidance. GPT has forecast FY26 funds from operations (FFO) of approximately 35.4 cents per share, representing growth of around 4% from the 34.0 cents generated in 2025. This gives a forward price-to-FFO ratio of approximately 15.8 times at the assessed price.
GPT reported net tangible assets of A$5.53 per share at 31 December 2025. The assessed price is therefore approximately 1.4% above the stated value of the company’s underlying assets. The forecast FY26 distribution of 24.5 cents per share represents a cash yield of approximately 4.4% at A$5.608, with around 69% of forecast FFO being distributed to shareholders.
The property portfolio continues to produce steady income growth. Like-for-like net property income increased by 6.3% during 2025, while average portfolio occupancy remained at 97.5% in the March 2026 quarter. Retail occupancy was reportedly 99.7% and logistics occupancy was 98.8%, although office occupancy was lower at 92.2%, partly reflecting the recently acquired Grosvenor Place asset, which was 73.2% occupied.
Net gearing was 31.1% at the end of 2025, within GPT’s stated target range of 25% to 35%. The company also had A$1.2 billion of available liquidity, an average debt term of 4.4 years and an average debt cost of 5.3%. This provides reasonable funding capacity, although higher interest costs remain an important consideration for a property business.
Importantly, this assessment is based primarily on GPT’s existing property portfolio, current asset values and FY26 earnings guidance. It does not assign significant value to further growth in its funds-management business, new developments, stronger office occupancy or future increases in property values. These may provide additional upside over time, but remain subject to interest rates, property valuations, tenant demand, development costs, office leasing conditions and debt levels.
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The user Jamesiskindacool has a position in ASX:GPT. Simply Wall St has no position in any of the companies mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.
