ASX:GPT

Stock Analysis Report

Executive Summary

The GPT Group is one of Australia’s largest diversified property groups and a top 50 ASX listed company by market capitalisation.


Snowflake Analysis

Undervalued second-rate dividend payer.


Similar Companies

Share Price & News

How has GPT Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GPT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.8%

GPT

8.6%

AU REITs

7.1%

AU Market


1 Year Return

-37.3%

GPT

-31.7%

AU REITs

-19.4%

AU Market

Return vs Industry: GPT underperformed the Australian REITs industry which returned -34.6% over the past year.

Return vs Market: GPT underperformed the Australian Market which returned -18.8% over the past year.


Shareholder returns

GPTIndustryMarket
7 Day8.8%8.6%7.1%
30 Day-31.9%-34.1%-21.3%
90 Day-32.1%-33.2%-24.8%
1 Year-34.5%-37.3%-28.5%-31.7%-15.8%-19.4%
3 Year-14.1%-25.4%-8.7%-21.7%-2.4%-15.8%
5 Year3.8%-17.9%17.5%-8.6%8.4%-16.0%

Price Volatility Vs. Market

How volatile is GPT Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is GPT Group undervalued compared to its fair value and its price relative to the market?

48.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GPT (A$3.63) is trading below our estimate of fair value (A$7.4)

Significantly Below Fair Value: GPT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GPT is good value based on its PE Ratio (7.7x) compared to the REITs industry average (9.1x).

PE vs Market: GPT is good value based on its PE Ratio (7.7x) compared to the Australian market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: GPT's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: GPT is good value based on its PB Ratio (0.6x) compared to the AU REITs industry average (0.8x).


Next Steps

Future Growth

How is GPT Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

-4.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GPT's earnings are forecast to decline over the next 3 years (-4.5% per year).

Earnings vs Market: GPT's earnings are forecast to decline over the next 3 years (-4.5% per year).

High Growth Earnings: GPT's earnings are forecast to decline over the next 3 years.

Revenue vs Market: GPT's revenue (3.1% per year) is forecast to grow slower than the Australian market (4% per year).

High Growth Revenue: GPT's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GPT's Return on Equity is forecast to be low in 3 years time (5.8%).


Next Steps

Past Performance

How has GPT Group performed over the past 5 years?

8.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GPT has a large one-off gain of A$322.9M impacting its December 31 2019 financial results.

Growing Profit Margin: GPT's current net profit margins are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: GPT's earnings have grown by 8.4% per year over the past 5 years.

Accelerating Growth: GPT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GPT had negative earnings growth (-38.7%) over the past year, making it difficult to compare to the REITs industry average (1.7%).


Return on Equity

High ROE: GPT's Return on Equity (7.8%) is considered low.


Next Steps

Financial Health

How is GPT Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: GPT has a high level of physical assets or inventory.

Debt Coverage by Assets: GPT's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: GPT's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if GPT has a sufficient allowance for bad loans.

Low Risk Liabilities: GPT reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if GPT has an acceptable proportion of non-loan assets held.

Low Risk Deposits: GPT has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if GPT has an appropriate level of bad loans.


Next Steps

Dividend

What is GPT Group's current dividend yield, its reliability and sustainability?

6.94%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GPT's dividend (7.37%) is higher than the bottom 25% of dividend payers in the Australian market (3.22%).

High Dividend: GPT's dividend (7.37%) is low compared to the top 25% of dividend payers in the Australian market (8.38%).


Stability and Growth of Payments

Stable Dividend: GPT's dividend payments have been volatile in the past 10 years.

Growing Dividend: GPT's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (79.2%), GPT's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GPT's dividends in 3 years are forecast to be thoroughly covered by earnings (0.04% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.4yrs

Average management tenure


CEO

Bob Johnston (57yo)

4.58s

Tenure

AU$3,789,034

Compensation

Mr. Robert William Johnston, also known as Bob, B. Eng (Electrical) (Honours 1), serves as Chief Executive, Managing Director and Executive Director at GPT RE Limited since September 9, 2015. He has been t ...


CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD2.33M) is about average for companies of similar size in the Australian market ($USD2.57M).

Compensation vs Earnings: Bob's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Johnston
CEO, MD & Director4.58yrsAU$3.79m0.087% A$6.1m
Anastasia Clarke
Chief Financial Officer4.42yrsAU$1.95m0.021% A$1.5m
Mark Fookes
Chief Operating Officer4.42yrsAU$1.91m0.060% A$4.2m
Brett Ward
Head of Investor Relations & Corporate Affairsno datano datano data
James Coyne
General Counsel & Company Secretary16.25yrsAU$1.07mno data
Matthew Faddy
Head of Office & Logistics4.42yrsAU$1.22mno data
Nicholas Harris
Head of Funds Management4.33yrsAU$1.70mno data
Chris Barnett
Head of Retail1yrno datano data
Jacqui O'Dea
Chief Risk Officer1yrno datano data
Lisa Bau
Senior Legal Counsel & Company Secretary4.58yrsno datano data

4.4yrs

Average Tenure

Experienced Management: GPT's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Johnston
CEO, MD & Director4.58yrsAU$3.79m0.087% A$6.1m
Tracey Horton
Non-Executive Director0.92yrAU$145.30k0.00090% A$63.6k
Gene Tilbrook
Non-Executive Director9.92yrsAU$217.91k0.0026% A$185.3k
Angus McNaughton
Non- Executive Director1.42yrsAU$210.38k0.0013% A$91.2k
Vickki McFadden
Chairman of the Board1.92yrsAU$430.00k0.0040% A$281.4k
Mark Menhinnitt
Non-Executive Director0.50yrAU$42.50k0.0015% A$108.9k
Michelle Somerville
Non-Executive Director4.33yrsAU$227.00k0.0019% A$132.9k

1.9yrs

Average Tenure

58.5yo

Average Age

Experienced Board: GPT's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: GPT insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.1%.


Top Shareholders

Company Information

GPT Group's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: GPT Group
  • Ticker: GPT
  • Exchange: ASX
  • Founded: 1971
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: AU$7.071b
  • Shares outstanding: 1.95b
  • Website: https://www.gpt.com.au

Location

  • GPT Group
  • MLC Centre
  • Level 51
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GPTASX (Australian Securities Exchange)YesStapled SecuritiesAUAUDNov 1980
GPTG.FOTCPK (Pink Sheets LLC)YesStapled SecuritiesUSUSDNov 1980
46TDB (Deutsche Boerse AG)YesStapled SecuritiesDEEURNov 1980
GPTCHIA (Chi-X Australia)YesStapled SecuritiesAUAUDNov 1980

Biography

The GPT Group is one of Australia’s largest diversified property groups and a top 50 ASX listed company by market capitalisation. GPT owns and manages a $24.8 billion portfolio of retail, office and logistics property assets across Australia. The Group has a substantial investor base with more than 32,000 shareholders. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 10:34
End of Day Share Price2020/04/01 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.