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Goodman Property Trust (NZX: GMT) Delivers Interim Profit Before Tax of $570 Million

Thursday 11th November 2021

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Goodman (NZ) Limited, the manager of Goodman Property Trust (GMT or Trust) is pleased to announce the Trust’s results for the six months to 30 September 2021.

Highlights include:

+ Statutory profit of $570.0 million before tax (including investment property valuation gains of $504.7 million), compared to $186.4 million before tax (including investment property valuation gains of $140.2 million) previously

+ 17.5% increase in net tangible assets, from 212.5 cents per unit at 31 March 2021, to 249.6 cents per unit at 30 September 2021

+ Operating earnings before tax of $60.2 million, a 7.5% increase from the previous corresponding period

+ An 8.2% increase in cash earnings to 3.29 cents per unit, and cash distributions of 2.75 cents per unit

+ Substantial balance sheet capacity, with a loan to value ratio of 17.5% and $310 million of available liquidity at 30 September 2021

+ Greater level of development activity with over $350 million of work in progress (total project cost) at 11 November 2021

+ Extension to the Trust’s development programme with the conditional acquisition of 34 hectares of light industrial zoned land in Māngere for $75 million

+ Around 134,000 sqm of new leasing (13.2% of the stabilised portfolio), occupancy of 99.5% and a weighted average lease term of more than five years

Result overview

The first six months of FY22 have been positive for GMT, with strong customer demand continuing despite the reintroduction of COVID-19 Alert Level restrictions.

Keith Smith, Chair of Goodman (NZ) Limited, said “While the Trust has recorded a substantial increase in profit, it has been the resilience of the business and the strength of the underlying operating result that have been the most pleasing aspects of the year to date.”

Significant new leasing, high occupancy levels, sustained rental growth, further development progress and strategic acquisitions have all contributed to the 7.5% increase in operating earnings before tax, to $60.2 million.

Chief Executive Officer John Dakin said “With its $4.3 billion industrial property portfolio exclusively invested in Auckland’s urban logistics market, GMT is benefitting from a heightened level of customer demand for well-located warehouse and logistics facilities.”

Supported by a rapidly growing digital economy and other structural changes, demand for distribution space close to consumers is exceeding supply in many locations across the city.

These positive market dynamics are expected to continue, and the Board has reaffirmed its full year guidance. Cash earnings of at least 6.5 cents per unit are forecast and cash distributions totalling 5.5 cents per unit are expected to be paid.

Further information is provided in the GMT and GMT Bond Issuer Limited Interim Report 2022. A copy of the report, which was released today, has been provided to the NZX and is available on the Trust’s website at:

Looking ahead

GMT has adapted to the ongoing challenges of COVID-19 and delivered another strong operating result.

While the economic outlook is still uncertain, the Trust remains well positioned for sustainable long-term growth. A high-quality portfolio focused on urban logistics will continue to benefit from the structural trends that are driving demand for distribution facilities close to consumers.

With a low loan to value ratio of 17.5% and only partially drawn debt facilities, at 30 September 2021 the Trust retains over $300 million of available liquidity for future investment.

Please see the links below for details

GMT delivers interim profit before tax of $570 million

GMT and GMT Bond Issuer Limited Interim Report 2022

GMT’s 2022 Interim Result Presentation

NZX GMT Result Announcement

Source: Goodman Property Trust

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