Goodman Property's first portfolio value increase since 2008
Goodman Property Trust, which is managed by a unit of ASX-listed Goodman Group, recorded the first increase in the value of its portfolio since 2008, adding to accounting adjustments that contributed to a 92 percent jump in annual profit.
The portfolio includes a revaluation gain of $4.2 million, following a devaluation of $19.5 million a year earlier. The value of the portfolio rose to about $2 billion, from $1.63 billion a year earlier, with acquisitions of $295.6 million making the biggest contribution to the increase.
The valuation uplift "reflects a strengthening investment market with increased demand from private and institutional investors in a continuing low interest rate environment," trust manager Goodman (NZ) says in a statement.
During the year, Goodman Property Trust acquired the shares of Auckland's Highbrook Business Park for $186.6 million in cash and shares from interest's associated with the manager's parent, Goodman Group, and from interests associated with the family of Woolf Fisher.
Rental income rose to $127.6 million in the latest year from $121.3 million a year earlier. Net profit jumped 92 percent to $77.9 million, mainly reflecting the revaluation and changes to the fair value of financial instruments.
Distributable earnings before tax rose to $87.7 million from $80.9 million. The trust's full-year cash distribution is 6.25 cents a unit. It is forecasting payments of at least 6.25 cents for 2014.
Two units of Goodman Group reap fees from the trust. Goodman (NZ) was paid $7.5 million as manager, up from $6.9 million a year earlier, while Goodman Property Services (NZ) got $8.3 million for property management, development and other fees, up from $6.4 million. No performance fee was paid.
Units of the trust fell 0.4 percent to $1.155 and have gained 15 percent this year.