Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Goodman Property lifts annual earnings 10%

Goodman Property lifts annual earnings 10% as new acquisitions come on stream

By Suze Metherell

May 14 (BusinessDesk) – Goodman Property Trust, New Zealand’s largest property investor by market value, lifted annual earnings 10 percent as rental income came on stream from new acquisitions, and flagged asset sales to fund future developments.

Distributable earnings after tax, a measure of profit that strips out valuation movements, rose to $92.9 million, or 7.45 cents a unit, in the year ended March 31, from $84.1 million, or 7.8 cents, a year earlier, the Auckland-based trust’s manager said in a statement. Net profit jumped 72 percent to $134.1 million as fair value gains accounted for a $23.8 million boost.

Total revenue rose 25 percent to $127.8 million, as earlier acquisitions, including its 100 percent ownership of Auckland’s Highbrook Business Park, came online and an increase in rents started to contribute, Andy Eakin, chief financial officer, told investors on a teleconference.

Goodman Property paid an $8.7 million management fee to manager Goodman (NZ), up from $7.5 million a year earlier, though it didn’t have to pay a performance fee. It also paid total management, development management and other fees of $9.9 million to related party Goodman Property Services (NZ), up from $7.8 million a year earlier.

The trust started 15 new projects in the latest year at a cost of $165.7 million, the highest level of development in the past five years. Goodman disposed its Gateside Industry Park for $37.2 million and said it would fund its developments through asset sales rather than equity, suspending its distribution reinvestment plan from June.

“Refinements to the management and governance structures together with a more active capital management strategy are positive new initiatives that will enhance the trust’s investment performance,” chairman Kevin Smith said.

The company expects to sell between $100 million and-$150 million worth of assets in the coming year. Since the balance date it sold SMEC House in Auckland for $26.2 million.

The trust will pay a final dividend of 1.56 cents per unit, payable on June 19, taking the total return to shareholders to 6.25 cents. It expects to pay 6.45 cents per unit in 2015. It expected distributable earnings before tax to be around 9.1 cents as lack of rental supply drove rental growth.

Units in the trust rose 2 percent to $1.025, and have gained about the same amount this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news