Perpetual's Sean Roger on the ASX Income Stock the Market Might Be Overlooking in 2026
•March 3, 2026
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Why It Matters
GPT offers a high‑yield, discounted income opportunity that could reward investors as the company leverages its balance sheet for growth amid a higher‑rate environment.
Key Takeaways
- •GPT's management refresh boosts confidence in strategic direction
- •Shift to active asset ownership leverages balance sheet for fund growth
- •Retail assets delivering strong performance and promising growth outlook
- •Stock offers ~5% yield with 10% discount to NTO
- •Higher interest rates present risk, but strong balance sheet mitigates
Summary
In a recent interview, Perpetual analyst Sean Roger highlighted GPT Group (ASX: GPT) as an overlooked income stock for 2026, focusing on its recent management overhaul and strategic pivot.
Roger notes that over the past 24 months the board refreshed its CEO, CFO and investment team, and is moving from a passive property owner to an active asset owner that uses its balance sheet to seed a funds‑management vehicle. The underlying retail, office and logistics assets are performing strongly, with retail properties showing especially robust growth.
He points to a current dividend yield near 5% and a market price about 10% below the net tangible assets (NTO) valuation. Despite a recent sell‑off triggered by higher‑rate expectations, GPT’s strong balance sheet and relatively low average cost of debt cushion the income outlook.
For yield‑focused investors, the combination of an attractive yield, discount to NTO and a strategic shift toward active asset management creates a compelling entry point, while the firm’s balance‑sheet resilience mitigates the headwinds of a rising interest‑rate environment.
Original Description
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