GPT’s Well-Timed Shift Into Industrial Property Partly Offsets the Woes in Retail

GPT’s retail, office and industrial properties generate about three quarters of its recurring revenue. Another 20% comes from funds management, however we do not assume substantial growth from new fund launches or fund inflows for GPT. We expect growth in the funds management division will largely track the value of properties held in its fund vehicles. GPT has some major developments in the pipeline, particularly in the office and industrial space, and as these complete, we expect rental income to become a larger portion of revenue over time.