Goodman, one of New Zealand's largest listed property owners reported a 12% lift in its operating earnings for the year ended March to $136.7million from $122.2million in the previous corresponding period.
The reported profit after tax was up 5% to $97.9 million from $92.9 million.
Goodman's board announced a cash distribution of 6.45c per unit, up from 6.25c a year earlier, and expects to pay out 6.65c in the 2016 financial year.
The board forecast before tax distributable earnings of 9.4c per unit in the 2016 year, up from 9.16c in the 2015 year.
Units in the trust last traded at $1.14, unchanged since the start of the year.
Forsyth Barr broker Andrew Rooney said the result was in line with expectations and guidance with solid revenue growth from development activity. Revenue was up 6% to $10.3 million in the period.
Underlying operating earnings were better than expected but offset by higher interest and tax.
Operating cashflow was $92.9 million with growth of 9.3% boosted by the payment of the management fee in units.
Gearing at 34% was below the 35% to 40% target range and Goodman had impressive debt facility diversification, with 40% of facilities non-bank, he said.
Goodman's industrial portfolio contributed the bulk of the $75.3 million valuation increase. Also pleasing was a contribution of $20.5 million from new developments.
Occupancy at balance date was 97%, icompared with 96% in the first half, he said.
''The key concern is the 92% occupancy in the office portfolio, which Goodman has indicated is centred on the back-filling of older space in the Greenlane precinct.''
With the better governance structure and Goodman's commitment to stick to its strategy to recycle capital into its own developments, the company was better positioned to grow its underlying earnings per share and dividend, he said.
During the financial year, Goodman divested $150 million of property, in line with its strategy, and invested in new development commitments.
''If Goodman can stick to its new strategies, including being miserly with regard to equity issuance, the portfolio is well positioned to provide steady underlying growth to investors.''
Forsyth Barr had a price target of $1.24 a unit on Goodman with a neutral rating. No material changes to the forecasts were expected, Mr Rooney said.
