sydneygpt group returned to an annual profit as the impact of pandemic restrictions lessened and the value of its portfolio of offices and shopping malls increased gpt reported a net profit of 142 billion australian dollars us101 billion for the 12 months through december compared to a a2132 million loss a year ago the result was driven by positive property valuation movements of a9243 million funds from operations were broadly flat on year at a5545 million when measured on a persecurity basis funds from operations increased by 12 gpt said it would pay a final distribution of 99 cents per security bringing its fullyear payout to 232 cents per security leading into mondays result gpt has been among the most cautious realestate investment trusts declining to provide guidance for either funds from operations or distributions amid upheaval caused by the covid19 pandemic gpt said this stance reflected uncertainty about retail trading conditions and rental collections lockdowns in major cities including sydney during the final six months of 2021 put pressure on retailers and mall owners gpt has signaled its melbourne central shopping mall could see a protracted recovery as it relies on office workers students and visitors to the city center companies like gpt have also dealt with the spread of the omicron variant of covid19 which hurt consumer confidence in the weeks after christmas and kept some employees working from home rather than returning to the office still investors have been broadly surprised by how well values for both retail assets and offices have held up during the pandemic part of that reflects data showing retail sales snap back quickly once lockdowns end while prime office space remains sought after contracts were last year exchanged on sale on gpt wholesale shopping centre funds wollongong central for a402 million which was in line with book value this month gpt and the gpt wholesale shopping centre fund exchanged contracts for the sale of casuarina square in the northern territory gpt said its offices were 929 occupied at the end of december while its retail portfolio was 991 occupied it also highlighted a strong performance by its logistics portfolio which now accounts for more than a quarter of the groups portfolio and was recently carved out into a separate business unit revaluation gains from the logistics portfolio were approximately a555 million in 2021 even as life returns nearer to normal as pandemic restrictions ease however new headwinds are appearing with inflation and potential interest rate rises among them december data showed core inflation up 10 from the previous quarter and 26 from a year earlier the latter easily beating the expected 23 economists have also moved to pencil in higher interest rates this year which would mark the reserve bank of australias first upward move in a decade in an interview with the wall street journal john edwards a former member of the central banks policysetting board said interest rates could rise four times in quick succession late in 2022 given the current upward trajectory of the economy interest rates could damp consumer confidence while making debt held by realestate investment trusts more expensive