Goodman Property reports 9% decline in full-year profit

The board will pay a cash distribution per unit of $6.65 cents per share, unchanged from the prior year.

Goodman Property Trust, the NZX-listed commercial and industrial property investor, reported a 9 percent decline in full-year net profit on a deferred tax payment and lower investment property revaluations and was slightly less upbeat about the current financial year.

Net profit was $213.8 million in 12 months to March 31, from $233.1 million, a year earlier, the Auckland-based company said in a statement. A deferred tax payment of $11 million impacted the number. Profit before tax was $220.5 million, including revaluations of $114.7 million, versus $247.9 million and revaluations of $145.8 million in the prior year.

The board will pay a cash distribution per unit of $6.65 cents per share, unchanged from the prior year.

Looking ahead, however, it said GMT's operating earnings for the 2018 financial year are forecast to be 9.0 cents per unit before tax. The reduction from 2017 reflects the impact of asset sales and balance sheet de-leveraging, it said. Cash distributions will be maintained at 6.65 cents per unit, it said.

Goodman's investment property was valued at $2.25 billion as of March 31 versus $2.28 billion a year earlier. As at March 31, the occupancy rate across the portfolio had increased to 98 percent from 96 percent in the prior year and the weighted average lease term extended to 5.8 years versus 5.3 years. It said

It pointed to greater balance sheet capacity with a look through loan to value ratio of 30.6 percent compared to 33.9 percent in the previous period and said there was an 8.3 percent increase in net tangible assets to 130.4 cents per unit compared to 120.4 cents per unit at March 31, 2016.

"With significant balance sheet capacity and only partly drawn debt facilities, GMT has the necessary liquidity to fund all its current development objectives. It also ensures that the Trust has sufficient headroom should investor sentiment change and asset values fall," said chief executive John Dakin in a statement.

The units last traded at $1.24 and have fallen 4.6 percent so far this year.