Garda flags 10.0 cents per security special distribution after $350.8M portfolio sale
In its 21 October 2026 update, Garda Property Group (ASX: GDF) said it currently intends to pay a special distribution totalling approximately 10.0 cents per security. The distribution is linked to expected capital gains from the divestment of its remaining property portfolio.
The portfolio comprises the principal transaction with a Charter Hall managed fund, together with separate transactions involving Heathwood and Pinkenba (together, the Transactions). The announcement also refers to the Morningside settlement in the quarter ending 31 March 2027.
The estimated 10.0 cents per security is in addition to Garda’s upgraded FY27 distribution guidance of 12.5 cents per security. The special distributions are subject to settlement of the transactions, final tax calculations, available cash reserves and Board approval.
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Estimated capital gains from the divestment program
The Transactions are expected to crystallise significant value created through Garda’s long-term ownership, development and active management of the assets.
Headline figures
Based on current estimates and the Group’s tax cost bases as at 30 September 2026, the divestment program is expected to generate:
- Gross sale proceeds: $350.8 million
- Gross capital gain before CGT discount: $90.7 million
- Gross capital gain per security: 41.7 cents
- Net capital gain per security after application of the 50% CGT discount, where applicable: 20.8 cents
These estimates remain subject to final completion adjustments, transaction costs, settlement statements, taxation outcomes and other customary post-completion matters.
Settlement timing
Garda expects the gains to arise in two tranches:
- Quarter ending 31 December 2026: the principal Charter Hall transaction and the Heathwood sale are anticipated to settle, with an expected gross capital gain of approximately 30.6 cents per security and net capital gain of approximately 15.3 cents per security.
- Quarter ending 31 March 2027: the Pinkenba and Morningside transactions are expected to settle, with an expected gross capital gain of approximately 11.1 cents per security and net capital gain of approximately 5.5 cents per security. The Morningside settlement is subject to any delays during the construction period.
The Heathwood sale was contracted at $17.5 million, a 6.7% premium to its independent valuation, and its November 2026 settlement is one of the first events feeding the December quarter gain.
Approximately 74% of the net capital gains are currently expected to be attributed to securityholders on the register at the end of the December 2026 quarter. The balance is expected to be attributed in the March 2027 quarter.
How the special distributions break down
Subject to the conditions above, Garda currently intends to pay special distributions based on the following current estimates.
| Quarter | Net capital gain (cps) | Estimated special distribution (cps) |
|---|---|---|
| December 2026 Quarter | 15.3 | 7.3 |
| March 2027 Quarter | 5.5 | 2.7 |
| Total | 20.8 | 10.0 |
The estimated distributions equate to roughly half of the expected 20.8 cents net gain. The Board intends to return a meaningful portion of the realised gains to securityholders, to assist with funding the relevant capital gains, whilst preserving substantial capital capacity to support future growth initiatives and its lending-led investment strategy.
That lending-led investment strategy has already reshaped earnings, with the loan book nearly doubling to $134 million in FY26 and contributing close to half of group revenue.
Educational: what is an AMIT and why attribution matters
An Attribution Managed Investment Trust (AMIT) is a trust structure in which taxable income and gains are attributed to investors for a given period. Garda is an AMIT and currently expects taxable capital gains to be attributed to securityholders in the financial period in which the relevant property settlements occur, with the 50% CGT discount applying where applicable.
This makes the register position at quarter end relevant, as it determines who receives the attribution. All final tax components will be confirmed in Garda’s annual AMMA calculations and statements, anticipated for distribution in August 2027. This is general information only and not tax advice.
Strategic position and what comes next
Following completion of the asset sales and repayment of Group debt, Garda expects to have substantial investment capacity available to pursue its strategic priorities. These include expansion of its real estate lending platform, security buybacks, future selective direct property investments and other capital allocation opportunities.
The announcement does not disclose the amount of capital to be deployed or the size of any buyback. Management describes the outcome as a simplified balance sheet with flexibility for the next phase of growth.
Matthew Madsen, Executive Chairman
“…The Board’s intention is to return a substantial proportion of the realised gains directly to securityholders through special distributions, whilst retaining significant balance sheet flexibility to execute Garda’s next phase of growth…”
Key dates for securityholders are the settlement quarters ending 31 December 2026 and 31 March 2027, followed by the AMMA statements anticipated for distribution in August 2027.
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