The benefits of a high quality property portfolio and an investment strategy focused on the Auckland industrial market is delivering impressive financial results for Goodman Property Trust.
Goodman Property Trust reported its 2017 annual result today, recording a substantial pre-tax profit of $220.5 million.
Keith Smith, Chairman and Independent Director of Goodman (NZ) Limited said, “The progression of the development programme, significant asset sales and selective acquisitions are all having a positive impact on GMT, lifting the quality of the portfolio and adding to its financial strength.”
Chief Executive Officer, John Dakin said, “With more than $535 million of new projects completed since 2012, GMT’s development programme is transforming the portfolio and delivering essential business infrastructure into a growing city.”
The increasing capital allocation to the Auckland industrial sector, currently 77% of GMT’s $2.4 billion property portfolio, is a deliberate strategy that reflects the strong growth profile of the city and the positive investment characteristics of modern industrial property.
It also positions GMT to benefit from the increasing demand for logistics space as a result of e-commerce.
John Dakin said, “GMT has continued to take advantage of the buoyant investment market with asset sales of $278.8 million during the year. Strong investor demand has also contributed to a portfolio revaluation of more than 5%, or $114.7 million.”
At 31 March 2017 GMT’s look through loan to value ratio was just 30.6%, a reduction from 33.9% last year.
John Dakin said, “With significant balance sheet capacity and only partly drawn debt facilities, GMT has the necessary liquidity to fund all its current development objectives.”
Keith Smith said, “Capital management and treasury initiatives have made the business more resilient. An extension to the Goodman+Bond programme, with a new offer of 7 year bonds launched today, will further improve the capital structure of the Trust.”
Keith Smith said, “Positive operating conditions are expected to continue over the short to medium term and the Board believes that the current strategy, with its focus on portfolio quality and development led growth, remains appropriate.”
The progression of the Trust’s development programme is expected to support underlying cash earnings in 2018, consistent with the prior year. Distributions will be maintained at 6.65 cents per unit.
A comprehensive summary of GMT’s financial performance is contained within the 2017 Annual Report. The report was released today and is available online at www.goodmanreport.co.nz