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Earnings rise for Goodman Property

NZN 18/05/2016 Paul McBeth

Goodman Property Trust lifted annual earnings 4.2 per cent as the country's second-biggest listed property investor benefited from cheaper interest costs.

Pretax operating earnings rose to $117 million in the 12 months to the end of March from $112.3m a year earlier, the trust's manager Goodman (NZ) said.

Finance costs dropped 15 per cent, while net rental income slipped 0.7 per cent to $133.8m.

The property investor has been overhauling its portfolio, selling more than $300m of assets and more than $350m of new development projects over the past three years, which it says will deliver the biggest return to unitholders.

"Following the completion of the current work book, the trust's land weighting will reduce to just 8.3 per cent of total property assets while investment in the favoured Auckland industrial and business park sectors will increase to 67.8 per cent," chief executive John Dakin said.

"With stable property market fundamentals and low interest rates stimulating business growth, the immediate outlook for GMT remains positive."

Goodman's net profit jumped 45 per cent to $247.9m, including a $145.8m gain in the value of its investment property portfolio.

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