Goodman Property expects to boost unit holder payments in 2014
Goodman Property Trust, the largest property investor by market value on the NZX, expects to increase payments to unit holders by as much as 2.3 percent in 2014 and signalled further investments are likely.
Pre-tax distributable earnings for 2014, a measure favoured by property investors as it strips out unrealised movements in property values, are expected to be between 8.2 cents per unit and 8.4 cents per unit, from 8.21 cents per unit in 2013, chief financial officer Andy Eakin says in notes for delivery at the trust's annual meeting in Auckland today.
Tax-paid cash distributions should at least match last year's 6.25 cents per unit, he says.
"While the current environment remains competitive, the quality of our portfolio, recent capital management initiatives and a proven development capability mean the Trust is well positioned to take advantage of the continuing improvement in market conditions."
The trust's net borrowings represent 34.8 percent of its property assets and the ratio is below both the board's targeted band of 35 per cent to 40 percent and the 50 percent level permitted under its bank and Trust Deed covenants, Mr Eakin says.
"We expect that current balance sheet capacity, together with the continuation of the distribution reinvestment plan and further assets sales will provide Goodman Property Trust with the funding capacity to pursue investment and development strategies."
Units in Goodman Property Trust gained 0.5 percent to $1.035, taking their gain this year to 2 percent.