Goodman Property Trust Units

Thursday 4th February 2016

Goodman Property Trust (GMT) is an externally managed listed Unit Trust that invests in high quality industrial and business space property. GMT has a substantial property offering that is focused in the main distribution centres of Auckland and Christchurch. The portfolio includes estates and stand-alone properties that provide around 1,000,000 m² of rentable area, accommodating more than 250 customers. Some of GMT’s property include Central Park, Highbrook and Millennium Centre in Auckland and Glasswork and Southpark in Christchurch with prominent customer portfolio which includes well-known companies such as Air New Zealand, New Zealand Post, Mighty River Power, Ford Motor Company and Vodafone.

GMT has a corporate credit rating of "BBB" from Standard & Poor's. GMT is managed by the ASX listed Goodman Group through its subsidiary Goodman (NZ) Limited. The interests of the manager are aligned with other investors through its cornerstone unit holding in the Trust. At 31 March 2015, Goodman Group held 17.8% of the units in GMT.

Sponsored by Colonial Ltd, the Trust made a public offering of 145m units in May 1999 at $1 per unit. With a market capitalisation of around $1.45 billion at 9 July 2015, GMT is one of the NZSX’s largest investment entities and a constituent in the leading NZX15 index.

Goodman Property Trust, New Zealand's largest listed property investor, posted a 20 percent drop in first-half profit, after the year-earlier period was boosted by a revaluation gain on its portfolio.

Profit slipped to $48.4 million, or 3.8 cents per unit, in the six months ended Sept. 30, from $60.2 million, or 4.77 cents, a year earlier. Profit in the first half of last year was boosted by a $13.7 million revaluation gain on investment properties. Its first-half rental revenue slipped 4 percent $73.1 million.

Goodman is selling assets to fund new development, with as much as $150 million of new projects in train for this financial year which it expects to improve earnings. It has $72.1 million of its properties contracted for sale and in the first half of the year and also announced five new development projects worth a total $72.6 million which are expected to generate $5.7 million of annual rental income and deliver valuation gains of 10-15 percent when completed.

Goodman's pre-tax distributable earnings, which strip out movements in the value of its property portfolio, increased 2.9 percent to $57.1 million, or 4.64 cents per unit. It reaffirmed its full-year forecast for about 9.4 cents per unit.

That's likely to boost cash distributions to unitholders to 6.65 cents per unit, from 6.45 cents last year, as indicated by the company.

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