Goodman (NZ) Limited, the manager of Goodman Property Trust (“GMT” or“Trust”) is pleased to announce the Trust’s annual result for the year ended 31 March 2013.
With a strengthened balance sheet and an enhanced property portfolio the Trust has achieved its operational objectives and recorded its highest after tax profit in more than 5 years.
Key highlights include:
+ A $38.2 million increase in profit before tax to $91.7 million, compared to a profit of $53.5 million the previous year.
+ Distributable earnings1 before tax of $87.7 million or 8.21 cents per unit on a weighted average issued unit basis.
+ Full year cash distributions of 6.25 cents per unit.
+ 100% ownership of Highbrook Business Park following the acquisition of the remaining joint venture interests in December 2012, for $186.6 million.
+ An expanded and enhanced $2.0 billion property portfolio.
Keith Smith, Chairman of Goodman (NZ) Limited, said, “A strengthening investment market and improved valuation outcome have contributed to this year’s strong profit result. It has been an active 12 months with new investment and equity initiatives, refinancing activity and development success enhancing the Trust while providing a solid platform for future growth.”
One of the major achievements of the year was the successful acquisition of the remaining interests in Highbrook Business Park.
The strategic rationale, the quality of the estate and a beneficial consideration structure were endorsed by Unitholders who voted overwhelmingly in favour of the initiative at a special meeting in December 2012.
The acquisition and associated equity raisings give GMT the largest market capitalisation of any NZ listed property entity, and rank it in the top fifteen of all investment vehicles listed on the NZX.
John Dakin, Chief Executive Officer of Goodman (NZ) Limited, said, “The strong result signals a new momentum in our business, total property assets have increased 23.2% to $2.0 billion while net debt as a percentage of property assets has reduced to just
34.8% providing capacity for further growth.”
GMT’s increased investment in Highbrook Business Park has enhanced an already high quality property portfolio and provided further development opportunity at a time when occupier demand and market activity are increasing.
With around 12% of the Trust’s $2.0 billion property portfolio invested in land, development activity is expected to be an increasingly significant driver of GMT’s financial performance.
John Dakin said, “Accelerating our development programme and realising the value in the Trust’s strategic land holdings is a key business focus.”
The Trust has commenced 48,000 sqm of new projects across its development estates over the last year, sustaining the momentum initiated with the commencement of The Crossing development at Highbrook Business Park in 2011.
The increase in development activity is expected to continue as forecast economic growth converts into sustained occupier demand.
John Dakin said, “While the current operating environment remains highly competitive, the quality of GMT’s portfolio, recent capital management initiatives and a growth orientated development strategy mean we are well placed to achieve our investment objectives.”
Distributable earnings guidance, of 8.2-8.4 cents per issued unit before tax, has been provided for the 2014 financial year. Cash distributions are expected to be at least 6.25 cents per unit for the year.
About Goodman Property Trust:
GMT is New Zealand’s leading industrial and business space provider. It has a substantial property portfolio that accommodates more than 250 customers in Auckland and Christchurch.
It is a high quality business with an investment grade credit rating of BBB from Standard & Poors.
GMT is an externally managed unit trust, listed on the NZX. It has a market capitalisation in excess of $1.3 billion, ranking it in the top 15 of all listed investment vehicles. The Manager of the Trust is a subsidiary of the ASX listed Goodman Group, which is also the Trust’s largest investor with a cornerstone unitholding of 17.6%.
1 Distributable earnings is an alternative performance measure used to assist investors in assessing the Trust’s underlying operating performance. Refer to the appendix of the corresponding NZX announcement for details on how this measure is calculated.