Goodman (NZ) Limited, advises that draft reports from independent valuers indicate that GMT’s portfolio will be valued at around $4.5 billion at 31 March 2024. This reflects a $258 million or 5.4% reduction in the fair value of GMT’s property assets since 30 September 2023, and an annual reduction of $484.5 million or 9.7%.

James Spence, Chief Executive Officer said, “While high-quality logistics and warehouse property has been one of the best performing property sectors over the last 12 months, the higher interest rate environment continues to impact real estate investment yields.”

The weighted average capitalisation rate of GMT’s investment portfolio is forecast to be 6.0%, compared to 5.2% at 31 March 2023.

James Spence said, “GMT’s strong portfolio fundamentals, with average occupancy of 99% and market rental growth of 3.6% over the last six months, have mitigated the full impact of softening capitalisation rates on property values.”

“With an initial yield of 5.3% the level of under-renting within the stabilised portfolio remains substantial. The potential reversion to market as assessed by valuers is around 23%. The benefits of this will be realised over time, as contract rents are reviewed to market and new leases are secured at the higher market rates.”

With $226.5 million of the forecast $484.5 million full year reduction already recognised in GMT’s interim financial statements, the impact to net tangible assets (from $2.305 per unit at 30 September 2023) is a decrease of around 18 cents per unit.

The result remains subject to finalisation of valuation reports and audit of GMT’s financial statements. Further details will be provided with the Trust’s FY24 annual result expected to be released in May 2024.

For further information, please contact:

James Spence
Chief Executive Officer
Goodman (NZ) Limited
(021) 538 934

Andy Eakin
Chief Financial Officer
Goodman (NZ) Limited
(021) 305 316

GMT preliminary second half FY24 valuation

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