Sharechat Logo

Goodman Property lifts annual earnings 10 percent as new acquisitions come on stream

Wednesday 14th May 2014

Text too small?

Goodman Property Trust, New Zealand's largest property investor by market value, lifted annual earnings 10 percent as rental income came on stream from new acquisitions, and flagged asset sales to fund future developments.

Distributable earnings after tax, a measure of profit that strips out valuation movements, rose to $92.9 million, or 7.45 cents a unit, in the year ended March 31, from $84.1 million, or 7.8 cents, a year earlier, the Auckland-based trust's manager said in a statement. Net profit jumped 72 percent to $134.1 million as fair value gains accounted for a $23.8 million boost.

Total revenue rose 25 percent to $127.8 million, as earlier acquisitions, including its 100 percent ownership of Auckland's Highbrook Business Park, came online and an increase in rents started to contribute, Andy Eakin, chief financial officer, told investors on a teleconference.

Goodman Property paid an $8.7 million management fee to manager Goodman (NZ), up from $7.5 million a year earlier, though it didn't have to pay a performance fee. It also paid total management, development management and other fees of $9.9 million to related party Goodman Property Services (NZ), up from $7.8 million a year earlier.

The trust started 15 new projects in the latest year at a cost of $165.7 million, the highest level of development in the past five years. Goodman disposed its Gateside Industry Park for $37.2 million and said it would fund its developments through asset sales rather than equity, suspending its distribution reinvestment plan from June.

"Refinements to the management and governance structures together with a more active capital management strategy are positive new initiatives that will enhance the trust's investment performance," chairman Kevin Smith said.

The company expects to sell between $100 million and-$150 million worth of assets in the coming year. Since the balance date it sold SMEC House in Auckland for $26.2 million.

The trust will pay a final dividend of 1.56 cents per unit, payable on June 19, taking the total return to shareholders to 6.25 cents. It expects to pay 6.45 cents per unit in 2015. It expected distributable earnings before tax to be around 9.1 cents as lack of rental supply drove rental growth.

Units in the trust rose 2 percent to $1.025, and have gained about the same amount this year.

 

NOTE: please be advised to read full articles from Business Desk Website, you will have to pay a subscription fee on their website.

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Pushpay buys Colorado rival for US$87.5m
Xero chair to retire early as family’s health comes first
Business leaders quiz finance minister on capacity to spend $12b
House prices are accelerating again, even in Auckland
13th December 2019 Morning Report
Tourists still coming but growth is slowing
Peters backs StuffME merger bid
Supplements, skincare firm poised for reverse listing
NZX, EEX eye carbon auction opportunity
A2 Milk boss steps down, shares fall 7.7%

IRG See IRG research reports