Shares in GPT Group fell to an intraday record low of 25.5 cents yesterday, as investors desert the listed property trust following a $3.25 billion annual loss, with one analyst saying it is in survival mode.
JP Morgan analyst Rob Stanton told clients: "GPT is in survival mode, translating into attempted asset sales, capex handbrakes, employee layoffs and dividend reductions."
"Deleveraging from its gearing starting point may not be possible if Australian rental deteriorate and asset sales cannot get reasonable to book.
"At the end of the day, is 40 per cent debt to total assets on a written-down Australian only portfolio of GPT's quality too high?"
"Probably not, but GPT will need to convince its lenders of that - who knows if those lenders will require another round of equity tipped in," Mr Stanton said
GPT Price at posting:
23.4¢ Sentiment: None Disclosure: Held
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