Goodman Property says 1H distributable earnings climb 23 percent , affirms annual guidance

Wednesday 20th November 2013

Goodman Property Trust, New Zealand's biggest listed property investor, said its distributable first-half earnings rose 23 percent and affirmed its guidance for full-year profit.

Distributable earnings, a measure of profit that strips out valuation movements, rose to $50.3 million, or 4.18 cents a share, in the six months ended Sept. 30, from $41 million, or 4.07 cents, a year earlier, the Auckland-based trust said. Net profit jumped 107 percent to $65.4 million, reflecting pretax fair value gains on property and financial instruments of some $20 million.

Total revenue rose 24 percent to $79.2 million, reflecting "strong rental cash flows from an expanded property portfolio," while operating expenses were little changed from a year earlier.

Separately today, Goodman's manager, Goodman (NZ), said the trust has acquired an office building in Auckland's Viaduct Precinct that is being developed by Goodman Group and Fletcher Building, which holds the lease for the site, for $92.6 million. Tenants include Fonterra Cooperative Group and the property has an initial cash yield of 8 percent, it said.

Goodman affirmed its guidance for full-year distributable earnings before tax of 8.2 cents and 8.4 cents and cash distributions of at least 6.25 cents. It had earnings of 8.21 cents a unit on that basis in 2013.

Goodman's units were unchanged at $1.03 and have edged up about 2 percent this year, while the NZX 50 Index has gained almost 20 percent.

BusinessDesk.co.nz

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