Morningstar flags GPT Group's retail push, funds management pivot; says securities 'undervalued'

GPT

28/06/2026 21:04

** Morningstar analysts view GPT Group’s GPT.AX securities as undervalued, saying the market under appreciates its A$28 billion ($19.30 billion) funds management platform, while noting its diversification into retail assets
** Says investors' main concern is GPT's exposure to a relatively weak Melbourne office market, but highlights that the company has been diversifying, with retail accounting for roughly 40% of its portfolio by book value, compared with office accounting for 37%
** Adds shift from rent collection to funds management is sensible given its capital‑light nature
** Notes recent half-stake acquisitions of retail assets Sunshine Plaza and Macarthur Square via GPT Wholesale Shopping Centre Fund will support funds management growth
** Forecasts 2026 funds from operations of 35.4 AU cents, 4% higher yoy, driven by rent growth in retail and logistics, improving office occupancy, and expanding assets under management
** Shares are down nearly 5% YTD 

($1 = 1.4510 Australian dollars)

 (Reporting by Shruti Agarwal in Bengaluru; Editing by Chris Reese)
 ((Shruti.Agarwal@thomsonreuters.com;))