Dakin sees blue skies
Listed Goodman Property Trust's property values are steadying after three years of devaluations
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DEALMAKERS
The chief executive of Goodman Property Trust’s management company, John Dakin, says commercial property values may be returning to positive territory.
When announcing the trust’s annual result for the year ending March 2011, he told NBR that his view was based on recent sales evidence.
Over the past year, Goodman Property’s result was less affected overall by devaluations, the biggest hit taken by its M20 business park at Manakau by losing $8 million in value to $20 million.
Otherwise, Goodman’s development properties were most affected by devaluations (9.5% or $19.2 million) compared with its investment portfolio which was virtually unchanged. Its Christchurch properties were generally unaffected by the earthquake. The property portfolio is valued at $1.5 billion after a decline in value of $24.8 million or 1.5% ($49.9 million last year).
Goodman’s after-tax bottom line profit rose to $36.7 million ($2.8 million last year) after devaluations and other adjustments were taken into account.
But the rental income gleaned from properties was $78 million, of which 90% will be paid out to investors, reducing to 80% next year after a change in dividend policy.
The trust will pay a final distribution of 1.935c per unit (no imputation credits), making the total payout for the year 7.74c per unit, down from 8.5c last year.
Chris Hutching
Wed, 18 May 2011
Wed, 18 May 2011
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Dakin sees blue skies
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