Goodman Property lifts profit, continues to rebalance portfolio
Goodman continues to take advantage of the buoyant property market to sell assets and recycle capital.
Goodman Property Trust lifted first-half profit 38%, mainly on the back of valuation gains on its investment properties.
It maintained its full-year guidance.
Net profit rose to $67.6 million, or 5.28c per share, in the six months ended September, from $48.4 million, or 3.8c a year earlier.
Revenue slipped 0.5% to $82.8 million, although property expenses dropped meaning net property income rose 0.6% to $67.5 million and there was a $19.8 million uplift in the value of investment property.
The board has declared distributions of 3.325c per unit for the first two-quarters and expects to distribute 6.65c cents per unit this year. The trust paid 6.65c per unit in the 2016 year, up from 6.45c a year earlier.
The board maintained its previous guidance of tax operating earnings rising to 9.5c per unit in 2017.
The company has sold three assets for a total $264.8 million this financial year. Goodman has recycled about $613 million of capital over the last four-and-a-half years, over a quarter of its total portfolio.
"GMT has continued to take advantage of the buoyant property market to sell assets, pay down debt and recycle capital into new development and investment initiatives," chief executive John Dakin says.
"We are executing an organic growth strategy that is refining and rebalancing the portfolio, with greater investment in the Auckland industrial sector."
Goodman's investment property was valued at $2.28 billion as the end of September, up from $2.11 billion a year earlier. The value of its existing properties was just under $2 billion, up 10.8% from a year earlier, while its developments were worth $63.8 million, down from $97 million in 2015.
The property investor's occupancy rate was at 96% with a weighted average lease term of 5.7 years, up from 96% and 5.2 years in the first half of 2015.
The units last traded at $1.265 and have fallen 1.5% so far this year.
(BusinessDesk)
Sophie Boot
Thu, 10 Nov 2016
Thu, 10 Nov 2016
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Goodman Property lifts profit, continues to rebalance portfolio
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