Goodman (NZ) Limited, the manager of Goodman Property Trust is contented to declare the Trust’s annual outcome for the year ended on March 31, 2012.
The main highlights comprise:
- A 24.4% augmentation in PBT to $53.5 million.
- Distributable income before tax of $80.9 million.
- Complete year cash distributions of 6.25 cents per unit.
- Renewed development impetus with the beginning of 7 novel projects offering up 49,615 sqm of net rentable region.
- Further refinancing movement with $132.0 million of bank facilities renewed and broadened at cutthroat margins.
- Sturdy leasing outcomes crosswise the investment collection with more than 155,000 sqm of space secured on novel or reviewed terms.
- Attaining an average tenancy pace of 96% over the period with a weighted average lease term of 5.4 years at 31 March 2012.
It has been another victorious time for the Trust with the sturdy financial recital showing the quality of the underlying property range and the advantages of an energetic management approach.
Keith Smith, Chairman of Goodman (NZ) Limited, stated, “The Board and Management Team are pleased with the sound operating result that has been achieved. The 24.4% increase in profitability to $53.5 million and a 4.4% increase in pre-tax distributable earnings to $80.9 million are particularly satisfying given the sluggish operating conditions that have persisted.”
The added income generated from the Trust’s development programme and past acquirements are reflected in the 2.4% augmentation in net property income, to $111.3 million, and the 4.4% boost in distributable EBT.
A higher effectual tax rate in 2012 has contracted distributable income to $74.8 million.
The $3.8 million increase in profit to $40.5 million shows an enhanced assessment result this year, even though the Trust’s portfolio still registered a 1.2% devaluation in general.
John Dakin, Chief Executive Officer of Goodman (NZ) Limited, said, “The performance of the investment portfolio is the main driver of the Trust’s financial result and the property services team have worked hard in a highly competitive market to maintain its strong rental streams.”
New service plans have heightened client satisfaction, assisting to maintain portfolio tenancy at 96%, well higher than the industry average. They have also assisted preserve the Trust’s complete average lease term at 5.4 years, guaranteeing that rental streams are constricted well into the future.
Hopeful progress has been attained in the growth programme with about 50,000 sqm of novel projects declared during the year.
John Dakin said “Progressing our development programme and realising the value in our strategic land holdings is an important driver of future growth. It broadens the customer base and enhances the overall quality and value of the portfolio.”
With rising levels of biz action likely to lift occupier demand by the next few years a greater level of design-build commitments are projected in 2013 and beyond.
Keith Smith said, “Equity issuance through the Distribution Reinvestment Plan has funded the growth of the development business while the bank refinancing has allowed us to take advantage of competitive rates that exist at present to extend the term of these facilities.”
The Trust has always followed careful financial plans, typically equity funding novel chances.
With realty markets fortifying the sale of assets will also be reflected with the proceeds recycled back into more growth orientated investment and development opportunities.
The current biz atmosphere is expected to carry on by the next 12 months with only modest economic growth expected. The Trust is likely to deliver similar outcomes under these situations, holding its tax paid distribution at 6.25 cents per unit or around 80% of distributable earnings for the 2013 financial year.