The Annual Meeting of Goodman Property Trust is being held today at Highbrook Business Park.
The meeting will review the Trust’s recent annual result, consider its strategy in today’s more buoyant economic environment and vote on new business initiatives.
Keith Smith, Chairman of Goodman (NZ) Limited, the Manager of the Trust said, “It has been a very positive 12 months for GMT with a growing economy and rising business confidence contributing to a stronger operating performance and record profit result of $146.8 million before tax.
To ensure that the future investment performance of the Trust is maximised, we are refining our strategy and enhancing the management and governance structures of the Trust.”
The Board has always sought to ensure the Trust has a contemporary governance framework aligning its practices more closely with those of a listed company. It has extended this with the introduction of investor nomination and voting on Independent Directors.
A more active capital management strategy is also being adopted with asset sales being used to fund the greatest volume of development activity in more than five years. John Dakin, Chief Executive Officer of the Manager said, “Accelerating GMT’s development programme and realising the value in its strategic land holdings remains a key focus. Asset recycling is a cost-effective source of capital that will help fund the$100 million plus of projects that we are expecting to secure this year. ”
Sustaining this level of activity, as the economy grows will enhance the portfolio while improving the quality and profile of the Trust’s earnings. Cash distributions for the 2015 financial year are expected to total around 6.45 cents per unit, more than 3% higher than the 2014 financial year.
Refinements to the management fee structure will also enhance the operational and financial performance of the Trust.
Keith Smith said, “With a management expense ratio of just 0.54% GMT has one of the most efficient and cost effective structures of any listed property entity. The changes being voted on today will refine an already competitive fee structure, reducing the quantum of fees paid by GMT.”
The proposed new fund fee structure features:
- A rebate equivalent to the fee paid on GMT’s development land portfolio.
- The requirement for the Manager to use its base management fee due to subscribe for new units in GMT.
The benefits to Unitholders are expected to include a lower management expense ratio ,an improved earnings profile, a reduced development land weighting and even greater alignment between between Goodman Group and other investors.
Keith Smith said, “The proposed changes to the fee structure and other new business initiatives are positive enhancements that will improve the investment performance of the Trust.”
John Dakin, concluded, “There is a growing momentum in our business at present and the benefits earlier investment decisions mean the Trust is extremely well placed to capitalise on rising customer demand.”
About Goodman Property Trust:
GMT is an externally managed unit trust, listed on the NZX. It has a market capitalisation of around $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, Goodman Group are also the Trust’s largest investor with a cornerstone unitholding of 17.6%. GMT is New Zealand’s leading industrial and business space provider. It has a substantial property portfolio with a value in excess of $2.0 billion that accommodates around 260 customers. The Trust holds an investment grade credit rating of
BBB from Standard & Poor’s.