GMT signals $185 million portfolio revaluation | New Zealand
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GMT signals $185 million portfolio revaluation

Wednesday, 6 March 2019

Goodman (NZ) Limited, the Manager of Goodman Property Trust (“GMT” or “Trust”), has confirmed that GMT’s financial result for the year ending 31 March 2019 will contain a significant property revaluation.

Draft valuation reports from independent valuers indicate that GMT’s property portfolio will record an annual gain of approximately $185 million or around 7.6%. The positive result means the portfolio will have a value of over $2.6 billion at 31 March 2019.

John Dakin, Chief Executive Officer said, “Investor demand for high-quality industrial property and positive market fundamentals are reflected in this record valuation result. The Trust’s development programme contributed significantly to the gain, complementing the strong uplift in value from the investment portfolio.”

The market capitalisation rate across the portfolio has strengthened 28 bps to 5.8% and market rentals have increased 5%, on a like-for-like basis, from the previous year.

The revaluation is expected to add 14 cents per unit to GMT’s NTA[1], which was 138.9 cents per unit at 31 March 2018. Asset sales during the year, including the Trust’s interest in Wynyard Precinct Holdings Limited[2], will add a further 3.5 cents per unit to NTA.

John Dakin said, “Principally driven by substantial asset sales over the last 12 months the Trust’s loan to value ratio at 31 March 2019 is expected to be around 20%.”
The revaluation remains subject to finalisation and independent audit. Further details will be provided with the Trust’s FY19 annual result announcement on 15 May 2019.

[1] Net Tangible Asset backing
2 Owner of the VXV Portfolio in the commercial precinct adjoining Auckland’s Wynyard Quarter