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

 

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."

Highlights include:
* 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.

Capital Management

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).

Future Outlook

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.

Ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Reserve Bank: Ongoing Monetary Tightening
The Monetary Policy Committee today increased the Official Cash Rate (OCR) to 3 percent from 2.5 percent. The Committee agreed it remains appropriate to continue to tighten monetary conditions... More>>



Statistics: Weekly Earnings Rise As More In Full-time Employment

Median weekly earnings from wages and salaries rose by 8.8 percent to $1,189 in the year to the June 2022 quarter, Stats NZ said today... More>>



Bell Gully: Uncertainty Ahead With New Unconscionable Conduct Legislation

new prohibition against ‘unconscionable conduct’ in trade is one of a number of changes to the Fair Trading Act 1986 that come into force from 16 August 2022. The new prohibition may have wide-ranging implications for many businesses... More>>


Electricity Authority: Imposes Interim Restrictions On Very Large Electricity Contracts

Consumers of electricity will be protected from potentially paying more than they should due to the impact of very large electricity contracts on wholesale prices, under urgent changes announced today by the Electricity Authority... More>>


Westpac: Economic Overview, August 2022 – Pushing Through

The New Zealand economy faces some lean growth in the year ahead as households’ budgets are squeezed, according to Westpac’s latest Economic Overview... More>>


Kiwi Group Holdings: Fisher Funds Acquires Kiwi Wealth Business

Kiwi Group Holdings Limited (KGHL) today announced the sale of Kiwi Wealth to Fisher Funds for NZ$310 million... More>>