Modest Valuation Gains for Garda Highlight Market Stability but Raise Growth Questions
Garda Property Group has reported a modest increase in the valuation of its industrial property portfolio, lifting the total to over $521 million ahead of its FY25 annual report.
- Seven industrial properties revalued with a $1.775 million uplift
- Total portfolio valuation reaches $521.3 million
- Weighted average capitalisation rate at 6.35%, industrial at 5.86%
- Unaudited net tangible assets per security expected at $1.61
- Pro-forma gearing stands at 41.9%
Portfolio Valuation Update
Garda Property Group has announced a positive update to its property portfolio valuation for the fiscal year ending 2025. Independent valuations of seven key industrial assets have resulted in a combined increase of $1.775 million, or 0.7%, raising the carrying value of these properties to $248.2 million. This uplift contributes to an overall portfolio valuation now standing at $521.3 million.
Industrial Sector Strength
The industrial segment remains the cornerstone of Garda's portfolio, with the weighted average capitalisation rate (WACR) for these properties at a competitive 5.86%. This compares favorably to the portfolio-wide WACR of 6.35%, reflecting strong investor demand and stable income streams in the industrial property market. Notably, some properties saw slight adjustments, including a $1 million increase at Berrinba and a minor decrease at Heathwood, indicating selective market dynamics within the sector.
Financial Metrics and Outlook
Garda's unaudited net tangible assets (NTA) per security is expected to be $1.61 as of June 30, 2025, providing a useful benchmark for investors assessing the company's underlying value. Meanwhile, pro-forma gearing remains moderate at 41.9%, suggesting a balanced approach to leverage that supports growth without excessive risk. These figures set the stage for the upcoming FY25 annual report, scheduled for release on July 30, which will offer a more comprehensive financial picture.
Strategic Implications
The incremental valuation gains underscore Garda's ongoing commitment to maintaining and enhancing the quality of its industrial assets. While the increases are modest, they reflect a resilient property market environment and the group's ability to navigate sector-specific challenges. Investors will be watching closely for further insights in the full annual report, particularly around rental income trends and capital management strategies.
Bottom Line?
Garda’s steady valuation gains hint at underlying portfolio strength, but the full FY25 report will reveal if momentum can be sustained.
Questions in the middle?
- What rental income growth underpinned the valuation increases in key industrial assets?
- How will Garda manage its gearing amid evolving market conditions?
- Are there plans to expand or diversify the portfolio beyond industrial properties?
