Daily ShareChat: Goodman Property Trust

By Jenny Ruth

Friday 22nd May 2009

Goodman Property Trust's annual distributable profit of $83.8 million, up 22% on the previous year, was in line with their forecast, says ABN Amro Craigs analysts Rob Foster and Daniel Reynolds.

"We believe Goodman is well-managed and well-positioned to mitigate the impact of an uncertain market environment," they say.

The trust's balance sheet shows strength and stability, they say. It successfully refinanced its $902 million debt facilities during the year and no further refinancing is due until October 2011.

"Currently, Goodman's net debt to total assets ratio is 35.2%, providing comfortable headroom within the covenant for Goodman's main debt facility of 45%," Foster and Reynolds say.

"We believe Goodman's management has been proactive in managing the portfolio to protect the trust's capital base and position Goodman for earnings growth as the recessionary period ends," they say.

"We support Goodman's prudent capital management and debt refinancing strategies and continue to support the recycling of assets as an option to shore up Goodman's balance sheet."

Goodman's investment portfolio was devalued 9.2% and its development land by 18.2%, cutting total assets by $172.8 million to $1.5 billion at March 31.

The analysts value Goodman's units at $1.04, the same as their net tangible assets.

BROKER CALL: ABN Amro Craigs rate Goodman Property Trust (NZX: GMT ) as BUY

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