Property group GPT has blamed softening market conditions for a 6.7 per cent profit drop.
The owner of shopping centres, office blocks and business parks made a net profit of $257 million in the six months to June 30, down from $275.5 million in the same period in 2012.
Chief executive Michael Cameron said softness in the property sector was a challenge.
"Whilst GPT remains cautiously optimistic about the second half of 2013, it is clear that market fundamentals have softened in the past six months," he said in a statement.
In the six months to June, GPT completed two developments worth $690 million, including the $300 million expansion of Highpoint Shopping Centre in Melbourne's west and a $780 million tower in central Sydney, which the group has a 50 per cent stake in.
The company has forecast earnings per share growth of at least five per cent for the full year, after posting growth of 5.8 per cent in the first six months.
GPT increased its distribution to securityholders, paying out 10.1 cents per security for the six months to June, up from 9.5 cents at the same time in 2012.
GPT securities gained two cents to $3.74.
