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


Goodman Property has good year in tough market

2 August 2011
Media Release

Goodman Property has good year in tough market

Unitholders of Goodman Property Trust were told that in a market recovering from the impacts of a global credit crisis, a prolonged recession and a cyclical downturn across the investment markets, the Trust has produced “sound operating results” at today’s annual meeting in Auckland.

Chairman Keith Smith said this had been achieved through a combination of strategic acquisitions and completed development projects in the past 12 months which had increased net property income by 2.4 percent to $108.7 million.

This has contributed to “distributable earnings before interest and tax increasing by 1.7 percent to $101.1 million.”

For the year ending March 31, 2011 the Trust paid a cash distribution of 7.74 cents per unit equivalent to a 7.9 percent tax paid yield at the “the current trading price of 98 cents”.

Mr Smith said Goodman Property Trust was the only listed property trust to have obtained a credit rating, and its triple B rating had supported its successful bond programme which was providing more than a third of its debt funding, “reducing its reliance on bank funding”.

“Goodman Property Trust has a robust business with a strategy appropriate for today’s changeable market conditions.

“While immediate growth prospects are limited, rising business confidence and a positive economic forecast make the board more optimistic about the longer term.”

Chief Executive Officer John Dakin told the meeting the Trust had maintained its portfolio occupancy rate for the past eight years “in a narrow band averaging 97 percent.”

“Through this we have maintained one of the longest weighted average lease terms in the listed sector at 5.6 years, and this has insulated the portfolio from short term shocks and fluctuations in occupier demand.

“This has secured rental cashflows well into the future.”

Mr Dakin said that Goodman Property Trust remained committed to Christchurch in the long term, and had more than 10 percent of its portfolio located in the southern city.

“We have been fortunate that the location and design of our properties meant they sustained only superficial damage.”

Mr Dakin said that recent sales of commercial properties “were evidence of a general lift in investment sentiment since March, and the valuation outlook for prime industrial properties is increasingly positive.”


© Scoop Media

Business Headlines | Sci-Tech Headlines


Civil Contractors: Massive Rebound In Civil Construction Business Confidence

New Zealand’s civil construction industry is riding a massive rebound in post-pandemic business confidence – but this may be undermined by skills shortages, which continue to be the industry’s number one challenge... More>>

Energy: Feeling Our Way Towards Hydrogen - Tina Schirr

Right now hydrogen is getting a lot of attention. Many countries are focusing on producing hydrogen for fuel, or procuring it, or planning for its future use... More>>

Maritime Union: Calls For New Zealand Shipping To Resolve Supply Chain Crisis

The Maritime Union says there needs to be innovative responses to ongoing shipping congestion. Maritime Union of New Zealand National Secretary Craig Harrison says it is essential that New Zealand develops its own shipping capacity... More>>

Housing: New Home Consents Continue To Break Records

A record 44,299 new homes were consented in the year ended June 2021, Stats NZ said today. “The annual number of new homes consented rose again in the June 2021 year, the fourth consecutive month of rises,” construction statistics manager Michael Heslop said... More>>

Real Estate: June Home Transfers Remain High
There were 44,517 home transfers in the June 2021 quarter, the highest June quarter figure since 2016, Stats NZ said today. The number of home transfers was very similar to the March 2021 quarter and was up 18,252 from the June 2020 quarter... More>>

Statistics: Household Saving Falls In The March 2021 Quarter

Saving by New Zealanders in the March 2021 quarter fell to its lowest level in two years after rising sharply in 2020, Stats NZ said today. Increases in household spending outpaced income growth, leading to a decline in household saving from the elevated levels that prevailed throughout 2020... More>>