Garda Sells Property Portfolio for $300M, Lifts Guidance

Garda Property Group (ASX:GDF) is exiting property ownership, agreeing to sell its seven remaining investment properties to a Charter Hall managed fund for $300.0 million and redirecting capital towards real estate lending.

With the previously announced Heathwood and Pinkenba sales for $50.8 million, gross proceeds total $350.8 million against a carrying value of $355.9 million, which Garda describes as a nominal 1.4% discount to underlying carrying value and NTA. Settlements are expected between November 2026 and March 2027. Garda anticipates repaying in full the syndicated debt facility, currently drawn to $185.3 million, giving pro forma gearing of 0% and approximately $176.6 million of surplus cash. Investable capital would be approximately $321.0 million, comprising $144.4 million of existing loan receivable assets and $176.6 million of new lending capacity, with pro forma NTA of $1.56 per security. FY27 FFO guidance is upgraded by 19% from 10.5 cents to 12.5 cents per security, and distribution guidance by 39% from 9.0 cents to 12.5 cents per security, targeting a payout ratio of approximately 100%. Garda has received in-principle advice from ASX that securityholder approval is not required.

Garda describes the contracts as unconditional, but its own table shows the $80.7 million Morningside sale as subject to due diligence. Guidance depends on the transactions completing broadly in line with the anticipated timetable.