Buy Rating for GPT Group: Strategic Positioning and Positive Financial Outlook Amid Office Lease Expiries

In a report released today, Simon Chan from Morgan Stanley maintained a Buy rating on GPT Group (GPTGF – Research Report), with a price target of A$5.77.

Simon Chan has given his Buy rating due to a combination of factors related to GPT Group’s strategic positioning and financial outlook. Despite concerns regarding the significant office lease expiries expected in the coming years, GPT Group’s management has communicated a positive outlook for 2025, particularly in terms of third-party capital inflows. This influx of capital is anticipated to support the company’s strategy of converting balance sheet assets into funds under management, thereby enhancing its financial flexibility and growth potential.
In addition to the strategic capital inflow plans, GPT Group is expected to see growth in funds from operations (FFO) driven by improved office rent performance and continued strength in the retail and logistics sectors. Although there are anticipated headwinds in the logistics sector due to asset divestments, the overall positive trajectory in these areas supports the Buy rating. Furthermore, the continued interest in GPT Group’s products and the upcoming capital raising efforts reinforce the company’s robust market position, justifying the optimistic outlook of a Buy rating.

In another report released yesterday, Citi also maintained a Buy rating on the stock with a A$5.00 price target.