GDI Property Group (ASX: $GDI) reports increased FFO and leasing success for H2 FY23

GDI Property Group (ASX: $GDI) has released its Appendix 4D report for the half year ended 31 December 2023. The report shows that the company has achieved significant leasing success, having leased 28,000sqm of space, representing 28% of its Perth office portfolio. The company's Funds From Operations (FFO) has also increased for the period.

Executive Commentary on Leasing Achievements and Financial Performance

During the past six months, GDI Property Group has successfully leased 28,000sqm of space, representing 28% of its Perth office portfolio. The company's office portfolio in Perth has experienced nine consecutive quarters of positive absorption, with vacancy rates at their lowest level since 2015. The company has capitalized on the positive market conditions, achieving significant leasing achievements across its portfolio. Notably, the Minister of Works signed a new 1,833sqm approximately 11-year lease for all of level 6 at Westralia Square, with the company achieving 98% occupancy at the location. Additionally, GDI has achieved leasing success at other properties within its portfolio, contributing to an increase in Funds From Operations (FFO) for the period.

Summary of Financial Report and Outlook

GDI Property Group's half-year financial report for the period ended 31 December 2023 reflects the company's leasing success and increased FFO. The company aims to continue capitalizing on the positive market conditions in Perth, focusing on successfully leasing the remaining vacancy across its portfolio. Additionally, GDI intends to secure pre-commitments for new developments and actively explore opportunities to add value to its portfolio through the development of lightweight steel and timber buildings. The company has also confirmed its intent to pay a cash distribution of not less than 5.00 cents per security for FY24, subject to no material change in circumstances or unforeseen events.