AUSTRALIA'S third-biggest real estate trust, GPT Group, says the worst of the decline in property values may be over -- and it has no plans to merge with other trusts.
Chief executive Michael Cameron told a business function on Tuesday that his predictions of a further softening in the property market may be proved wrong.
"I have to say, as every day passes, I think there is a chance that we may have, in fact, already been past the bottom of the cycle," Mr Cameron told the American Chamber of Commerce in Australia event.
"With rents now starting to increase in some of our capital cities, the valuations may in fact not have only stopped falling, but in fact be on the way up."
GPT's core business is owning, managing and developing Australian retail, office and industrial property.
Its assets were worth $9.7 billion at June 30 this year, down from $13bn six months earlier.
The drop was due to a combination of falls in asset values, sales of assets and repayment of debt. The trust is streamlining its portfolio to include only Australia-based retail and commercial assets through the sale of a projected $1.7bn worth of non-core assets.
Mr Cameron said that process was continuing, with a further $1bn in assets still to be sold. A $1.7bn capital raising earlier this year and an exit from an offshore joint venture with Babcock & Brown had also strengthened GPT's balance sheet, he said.
GPT Price at posting:
$3.30 Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)