Goodman Property Sets Record Profit

15 May 2008
Immediate Release
 
 
Goodman Property Sets Record Profit
 
The industrial and commercial property market continues to deliver robust returns, and Goodman Property Trust has announced a record after tax profit of $99.3 million (up 7.4%) and a total cash distribution of 9.9 cents a unit (up 4.8%) for the year ending March 31, 2008.

At year end net tangible asset backing per unit was $1.29, up 5%.

In announcing the audited results, Chairman Jim McLay said that Goodman Property had achieved all its financial and operational objectives during the past 12 months, including exceeding the distribution forecast it made in its November 2007 prospectus, used to raise $2275 million in new equity.

“Distributable profit was $68.7 million, an increase of 25.8% on last year,” said Mr McLay.

“This reflected the positive impact on our operations of recent acquisitions, earnings from developments and rental growth across our entire portfolio.”

Mr McLay said that the Trust’s total assets had increased by 29% to $1.6 billion by year end, which included property revaluations of $29 million.

At the same time Goodman Property reduced its borrowings as a percentage of assets to 27%, from 32%.

Chief Executive Officer John Dakin said Goodman Property was “exceptionally well placed to perform strongly in any slowing market”.

“Goodman Property is a robust business with secure income streams from a high quality customer base.

“We have around 240 customers, who include some of the most well known and successful industrial, manufacturing and distribution companies that operate in New Zealand.

“Our average lease term is 6 years, we have an occupancy rate of 97 percent and our debt levels are conservative.

“These factors will assist us to manage the impact on earnings of any rise in prices or slowing of the economy.”

Goodman Property reaffirmed it is forecasting to pay an after tax cash dividend of 10.25 cents for the 2009 financial year, up 3.5% on this year’s total payout of 9.9 cents.

Ends

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