Property group GPT believes growth in online shopping will slow and that there’s still a big future in bricks and mortar retail.
“Growth in online shopping and non-retail consumer spending is expected to stabilise with retail spending growth expected to trend back towards historical averages,” says CEO Michael Cameron.
Traditional retailer everywhere are under pressure from the growth of the online spend, but this belief in retail property is somewhat supported by the latest National Australia Bank’s latest online retail sales index show a slowing in growth.
However, online ordering still has a 9.6 per cent annual growth rate. The NAB index is due to be updated this week.
Cameron was releasing September quarter results which show the group expanding its funds under management to $10 billion from $7.2 billion.
He’s forecasting earnings per share to be at least 6 per cent for 2013. GPT will return 80 per cent of earnings to shareholders.
Sales growth is positive and the occupancy rate stable at 99.6 per cent.
GPT, a specialist in retail office and logistics, is seeing strong demand from offshore and in Australia from superannuation funds.
Cameron says the group will maintain a frugal approach via a “fortress” balance sheet.
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