Q1 FY27 highlights: 97.6% occupancy across GPT’s Investment portfolio
In its September quarter 2026 operating update for Q1 FY27, The GPT Group reported average occupancy (including heads of agreement, by area) of 97.6% across its Investment portfolio. The weighted average lease expiry (WALE, including heads of agreement, by income) was 4.4 years for the quarter ended 30 September 2026.
Occupancy by sector as at 30 September 2026 was:
- Retail: 99.7%
- Logistics: 98.7%
- Office: 92.8%
High occupancy across all three sectors points to income resilience for the portfolio.
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Retail performance and Rouse Hill expansion
Sales and occupancy metrics
The Retail Investment portfolio recorded a WALE of 3.8 years as at 30 September 2026. The table below sets out the sales and cost metrics reported for the quarter.
| Metric | Total centre | Specialty |
|---|---|---|
| Sales growth for the quarter (vs pcp) | 3.6% | 3.6% |
| MAT growth (as at 30 September 2026) | 3.9% | 3.5% |
| Sales productivity ($ per sqm) | n/a | $14,065 |
| Occupancy cost | n/a | 15.9% |
The retail metrics exclude the development-impacted Rouse Hill Town Centre. Specialty sales growth is for Total Specialties (including mini-majors). The MAT growth figures exclude the development-impacted major tenant (Parkmore Big W) and assets owned for less than 24 months.
Expansion pipeline
Post quarter-end, the Rouse Hill Town Centre, NSW expansion opened fully-leased on 29 October, adding 50 new stores. These include a number of new-to-centre brands and existing retailers expanding their presence.
Progress continues on expansion works at Melbourne Central.
Office and Logistics momentum
Office
The Office Investment portfolio delivered occupancy of 92.8% and a WALE of 4.7 years as at 30 September 2026. Leasing at Grosvenor Place, Sydney progressed, with occupancy on a 100% basis by area increasing from 70.6% at 30 June 2026 to 74.9% at 30 September 2026.
During the quarter, GPT announced the acquisition of 66 Eagle Street, Brisbane by the sector-agnostic value-add partnership for $380 million. The 23-level A-grade office tower is 95.5% leased and extends the partnership into the office sector.
The 66 Eagle Street acquisition was struck at a discount to replacement cost, and management has pointed to material under-renting within the building as a source of potential upside as leases roll.
Total investment by the partnership is now more than $500 million across Living, Logistics and Office since its establishment in February 2026. This figure includes the Blacktown logistics development at its estimated end value on completion.
Logistics
Logistics occupancy was 98.7% with a WALE of 4.8 years. Leasing momentum continued, with 131,700 sqm completed in the quarter on a 100% basis, taking year to date volume to 232,100 sqm across 17 deals.
At Kemps Creek, Sydney, ~21,000 sqm was delivered in Q3 2026, with an additional ~20,000 sqm to be delivered in the precinct in Q4 2026. Signed leases or heads of agreement are in place across all of the ~41,000 sqm of Q3 and Q4 deliveries.
An infill Sydney development at Blacktown is also being activated, held within the sector-agnostic value-add partnership.
How occupancy and WALE shape property trust income
Occupancy is the share of available space that is leased. WALE is the average time until leases expire, weighted by income.
Heads of agreement are agreed terms reached before a formal lease is signed. GPT’s figures include them.
Together, high occupancy and a multi-year WALE support visibility over rental income, which in turn underpins distributions for investors.
David Jones exposure and 2026 guidance
GPT noted the recent receivership and voluntary administration of David Jones. It holds a direct interest in two centres with a David Jones store and an indirect interest in a further store through its investment in the GPT Wholesale Shopping Centre Fund.
GPT’s annualised gross rent from David Jones in 2026, on a managed-weighted basis, is approximately $4 million, or 0.6% of Funds From Operations (FFO).
Barring unforeseen circumstances, the Group continues to expect to deliver FY 2026 FFO of approximately 35.4 cents per security. That represents approximately 4% growth on FY 2025, or approximately 5.7% excluding trading profits. The FY 2026 distribution is expected to be 24.5 cents per security.
GPT’s 2026 interim results showed first-half FFO of $338.8 million, with gearing of 31.5% and $1.0 billion of liquidity supporting the balance sheet behind that outlook.
What happens next for GPT
Several items are flagged in the update:
- Kemps Creek, Sydney: an additional ~20,000 sqm is to be delivered in Q4 2026, with signed leases or heads of agreement in place.
- Melbourne Central: expansion works are continuing.
- David Jones: GPT looks forward to receiving more detail on the plan for the business and will work constructively through the process.
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