Diversified shopping mall owner GPT Group has dumped its earnings guidance, in a sure sign of a muted second half to the year in the retail sector.
GPT Group is currently valued at $9 billion, with its many shopping malls including Rouse Hill Town Centre, Macarthur Square, Melbourne Central, and a stake in Westfield Penrith.
GPT blames the state governments’ shifting retail restrictions for its earnings outlook, as many of its leaseholders are unable to continue trade, and seeking rental relief.
GPT chief executive Bob Johnston said, “given the recent restrictions in both Sydney and Melbourne and the uncertainty as to when these restrictions will be lifted and the ongoing risk of additional measures, we believe it is prudent to withdraw Funds From Operations and distribution guidance for the full year,” he said.
Investors echoed this uncertainty, with shares down 2.7 per cent at the close of market yesterday.
