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Goodman Property has loss on revaluation, cuts payment forecast

Thursday 13th November 2008

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Goodman Property Trust posted a first-half loss, reflecting a reduction in the value of its property portfolio, and lowered its forecast for its 2009 distribution.

The net loss was $11.3 million in the six months ended September 30, from a profit of $28.7 million a year earlier, the trust said in a statement. The loss reflects a $57 million devaluation of its property.

Faced with a global credit squeeze, Goodman renewed some $481 million of debt for a three-year term including a "substantial portion" of its $625 million main debt facility ahead of its 2010 expiry.

The refinancing "add strength and security to the business," said John Dakin, chief executive of the trust's manager, Goodman (NZ). Still, the move incurred some cost "that will impact on forecast earnings for the balance of the year."

As a result, the trust's forecast cash distribution for the 2009 year has been cut to 10 cents a unit from 10.25 cents.

Total assets at September 30 were $1.62 billion, up from $1.6 billion at March 30. Debt within the portfolio amounts to 32% of property assets, it said.

Units of Goodman Property were unchanged at $1 and have fallen about 31% this year, in line with the NZX 50 Index's decline.

By Jonathan Underhill

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