Goodman Property Trust assets have risen to $2 billion with the specialist industrial property owner booking a 92% rise in after-tax profit, largely on the back of $296 million in acquisitions.
Goodman (NZ) Ltd chief executive John Dakin said the strong result signalled a new momentum for the business, with total property assets having increased 23.2% to $2 billion while net debt, as a percentage of property assets, reduced to 34.8%.
For its full year to March, Goodman Property booked a $37.4 million, or 92.4%, increase in after-tax profit, to $77.9 million, while full-year cash distributions were 6.25c/unit; 79.3% of after-tax earnings.
Goodman Property took 100% ownership of Highbrook Business Park following the acquisition of the remaining joint-venture interests in December, for $186.6 million, while more than $235 million of new equity was issued through the Highbrook buys, plus associated equity initiatives and distribution reinvestment operation.
Craigs Investment partners broker Peter McIntyre said the earnings per unit of 7.8c were 4% ahead of expectations, underpinned by a lower-than-expected tax rate. The company had a good lift in net asset value and tenancies were up.
''Between Highbrook and Auckland growth in general, Goodman is really well positioned for growth,'' he said.
Rental income rose from $121.3 million a year ago to $127.6 million. After last year's portfolio asset devaluation of $19.5 million, Goodman Property booked a gain of $4.2 million.
Forsyth Barr broker Haley Van Leeuwen said Goodman Property was doing a good job maintaining attractive yields on development projects, with average yield on cost about 8.70%.
''Goodman has a large land bank which represents about 12% of their total property assets. This will provide the company with opportunities to grow revenues and maintain a current book of assets,'' she said.
She noted debt restructuring and refinancing activity saw the amalgamation of three previous stand-alone facilities into a single $600 million bank facility.
