Goodman Property Trust delivers $648.9m pre-tax profit

Highbrook Business Park. Photo GMT

Goodman Property Trust (GMT), the NZX-listed industrial and office property owner which owns Highbrook Business Park, has announced a profit of $648.9 million before tax for the year ended March 31.

It reflects an increase of 128.2 per cent on the previous financial year.

GMT said in a statement it has demonstrated its resilience over the last 12 months, adapting to the operational challenges of Covid-19 while continuing to execute an investment strategy focused on the Auckland urban logistics market.

Strong cashflow growth, driven by ongoing leasing success and continued development progress have supported significant portfolio revaluations and contributed to the record profit growth, Keith Smith, chairman of Goodman (NZ) Limited said.

“We’re extremely pleased with the performance of the Trust over the last 12 months,” Smith said.

“We’ve achieved our operational targets and progressed new capital management and sustainability initiatives that make GMT an even more resilient business”.

The pandemic has highlighted the important role that warehouse and logistics property has in the national supply chain, he said.

“It is critical business infrastructure that is also supporting the rapid growth of New Zealand’s digital economy.”

Highbrook Crossing Units, Highbrook Business Park.

Chief executive officer John Dakin said, “E-commerce is emerging as an important demand driver for our portfolio. With its urban logistics focus, the Trust is benefitting from the growing demand for distribution facilities close to consumers.”

Dakin said these structural trends are reflected in GMT’s strong leasing results, contributing to the 2.9 per cent increase in cash earnings to 6.40 cents per unit.

With the risks of Covid-19 in New Zealand being contained, the economic outlook has improved, he said.

“Guidance for FY22 reflects a 4 per cent increase in cash earnings and a corresponding increase in cash distributions to at least 5.5 cents per unit,” Dakin said.

“By delivering a strong operating performance in a year disrupted by Covid-19, GMT has shown that it is a robust and resilient property business.

“GMT’s high-quality portfolio focused on urban logistics should continue to benefit from the structural trends that are driving demand for distribution facilities close to consumers.

“While economic and pandemic risks remain, the quality, scale and location of the portfolio, together with low gearing and focused investment strategy gives the Board and Management confidence that the Trust remains well positioned into FY22.”