GDI Property Group reported a 25% year-over-year increase in funds from operations (FFO) to $44.5 million for the fiscal year ended December 2025, driven by strong leasing performance in Perth’s commercial property market. FFO per security climbed 24.5% to 8.24 cents, while total revenue from ordinary activities reached $77.0 million, up from $74.2 million in the prior year.
The company’s Property Division FFO rose 14.8% to $58.4 million, with Westralia Square contributing $35.4 million across its two towers—WS1 at $29.3 million and WS2 at $6.1 million. The 197 St Georges Terrace asset saw FFO jump 29% to $16.0 million, while co-living joint ventures delivered a 44% increase to $9.5 million. Portfolio occupancy improved to 90%, with Westralia Square achieving full occupancy post-balance date.
GDI’s balance sheet strengthened, with net tangible assets per security rising to $1.21 from $1.20. Total assets increased to $1.09 billion, including $962.6 million in investment properties, while net assets totaled $710.5 million. Drawn debt on the syndicated facility fell by $21 million to $343.3 million, with the facility size expanded to $426.5 million, leaving $78.2 million in undrawn capacity. Gearing declined to 33% from 34%, and the loan-to-value ratio stood at 37.1%, below the 50% covenant limit.
The company announced a FY26 distribution guidance of 5.0 cents per security and an on-market buyback of up to 5% of stapled securities. Net fair value gains on investment properties moderated to $3.4 million from $20.8 million in FY25. GDI also highlighted asset sales exceeding $145 million, including the disposal of the Autoleague portfolio, which delivered an investor internal rate of return exceeding 13% after fees.
Perth’s office market showed resilience, with CBD deal volume in the first half of 2026 up 96% year-over-year to 66,985 square meters. Prime net face rent growth accelerated to 4.3% in Q2 2026, while weighted average capitalization rates compressed slightly to 6.8%. Western Australia’s population growth remained the fastest in Australia at 2.2% in the year to December 2025, supporting demand for commercial space.
GDI’s co-living portfolio expanded to 987 rooms across four locations, with Moranbah adding 239 rooms. The company’s interest coverage ratio improved to 2.4 times, exceeding the covenant requirement of 1.5 times. Available liquidity post-balance date increased to approximately $90 million.
