MGP Delivers After Tax Profit of $35.1 million
MGP Delivers After Tax Profit of $35.1 million
Macquarie Goodman Property Trust ("MGP" or "Trust") is pleased to report an after tax profit of $35.1 million for the year ended 31 March 2006. The result represents a 98.2% increase on the previous year's profit of $17.7 million.
Weighted earnings before tax, and on a normalised basis, were 9.93 cents per unit compared with 9.44 cents per unit for the previous year.
Gross distributions of 9.86 cents per unit were paid to unitholders this year. As the fourth quarter distribution was paid earlier than usual, due to the recent capital raising, no distribution is being announced at this time. MGP is projected to distribute 10.20 cents per unit for the 12 months to 31 March 2007.
The after tax profit of $35.1 million excludes portfolio revaluations which added a further $27.8 million to the value of the portfolio, bringing total net profit after tax to $62.9 million. The revaluation gain contributed to the 8.7% increase in net tangible assets from $1.04 to $1.13 per unit over the 12 months to 31 March 2006.
Jim McLay, Chairman of MGP's manager Macquarie Goodman (NZ) Limited ("Macquarie Goodman") said, "Macquarie Goodman has delivered on its repositioning strategy for MGP, adding depth and scale to the portfolio through quality acquisitions, active asset management and the progression of the development programme. The combination of these activities has greatly enhanced the portfolio and contributed to an impressive result consistent with our projections."
* Increase in net profit after tax from $17.7 million to $35.1 million
* Revaluation uplift of $27.8 million increasing NTA from $1.04 to $1.13 cents per unit
* Property acquisitions of $348.8 million
* Increase in total assets from $541.8 million to $927.4 million
* Increase in market capitalisation from $379.3 million to $623.0 million
Macquarie Goodman Chief Executive Officer, John Dakin said, total operating revenue for the year increased 145% to $53.2 million, following the full year's impact of the $304.3 million acquisition in March 2005 and organic growth within the portfolio.
Mr Dakin said "With an enviable portfolio of 23 quality industrial and business space properties and a market capitalisation of $623.0 million, unitholders now own a stake in one of New Zealand's largest industrial and business space providers. We have a customer base that includes some of New Zealand's leading companies and a business model that fosters and develops these relationships."
Leasing and Developments
Macquarie Goodman has achieved strong leasing results on both the investment and development portfolios.
Notable achievements include:
* The leasing of 141,500 sqm of industrial and business space
* Development pre-commitments of over 68,000sqm
* Customer retention rate an impressive 87%
* A strong occupancy rate of 98%
* Weighted average lease expiry up from 4.4 years to 5.6 years
Acquisition & Divestments
Following unitholder approval in March 2006, MGP acquired interests in properties held by Macquarie Goodman's parent, the Australian listed Macquarie Goodman Group which holds a 30% cornerstone stake in MGP, for $318.2 million. Prior to this transaction, MGP purchased Fujitsu House at 139 Carlton Gore Road in April 2005 for $30.6 million and disposed of NEC House and Windsor Court realising a gain of $3.7 million.
Since 31 March 2006, MGP has made further acquisitions purchasing two properties, located in Auckland and Christchurch, on a sale and leaseback basis from APN News and Media for $21.0 million.
Over time it is expected that exposure to the industrial estate and warehouse/distribution sectors will increase as new development commitments are secured and the rationalisation of further non-core office park assets is considered.
MGP raised $126.7 million in new capital to fund property acquisitions of $348.8 million. This money was raised via a $112.7 million institutional placement in March 2006 and an associated Unit Purchase Plan that raised $11.6m in April 2006. The balance was raised through the distribution reinvestment plan that was implemented for the June and September quarters.
MGP also increased its syndicated banking facility with the Commonwealth Bank of Australia and Westpac Banking Corporation to $425 million (up from $300 million).
The MGP portfolio has grown and been significantly enhanced under the repositioning strategy of Macquarie Goodman. MGP will continue to invest in high quality well located investment properties and undertake risk managed development opportunities that add further depth to the customer base.
While business growth is expected to slow over the short term the industrial and business space sectors continue to experience strong occupier demand. With a proven Customer Service Model, a quality portfolio, active asset management and a wide customer base MGP remains well placed for continued growth.