GPT Group's quarterly update featured a reiteration of 2023 funds from operations guidance. Office occupancy is now at 90.4%, up from 88.5% throughout the first half. Management had targeted 90% by December.

Retail sales remain in positive Territory, Morgan Stanley notes, but the trend is downward. The mild concern for the broker is that retail
occupancy cost has crept up by 20bps to 15.9% in the last quarter, implying rent is now growing faster than sales, which is not sustainable into the medium term.

Equal-weight and $4.25 target retained. Industry view: In-Line.

Sector: Real Estate.

Target price is $4.25.Current Price is $3.89. Difference: $0.36 - (brackets indicate current price is over target). If GPT meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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