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Goodman Property makes strong profit

Radio New Zealand logo Radio New Zealand 6 days ago
Auckland city © REX Features Auckland city

Goodman Property Trust has made a strong profit reflecting gains in the value of its property portfolio.

The industrial property investor's net profit rose 65 percent to $319.5 million in the year ended in March, reflecting a record revaluation gain of $201.9m, which included $26.2m from its development activity.

Revenue fell nearly three percent to $155.2m as the company sold some properties to concentrate on industrial properties and had a large number of developments underway.

The company had completed $1.2 billion of asset sales and spent $675m in new development projects over the past five years.

It said the changes had generated strong profits and strengthened its balance sheet, with its loan to value ratio down to just under 20 percent.

"The balance sheet capacity provided by the sales programme will be invested into new development and acquisition opportunities over time," said the trust manager John Dakin

The company's $2.6b portfolio is entirely made up of Auckland industrial property.

"It's a supply constrained market and we're undertaking a record level of development activity to accommodate customer demand," Mr Dakin said.

It also had 14 developments underway at a cost of $195.7m, with the majority at its Highbrook East Tamaki business park.

Goodman expected its unit payout to be held at 6.65 cents in the current financial year.

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