Rising commercial property values has more than doubled Goodman Property Trust's (GMT) full year profit.
A sign showing commercial property for lease in Auckland (file photo) Photo: RNZ / Dan Cook
The property investment firm's net profit for the year ended March rose 141 percent to $631.7 million, bolstered by a significant revaluation gain of $560m of its portfolio, compared with about $165.8m gain a year ago.
The trust primarily invests in big warehouses and distribution space across Auckland.
Revenue from operations increased by just under 6 percent to $182m, with a 99.8 percent occupancy rate at its properties, and an average lease term of of 5.5 years.
GMT chief executive John Dakin said the pandemic had highlighted the role that logistics property played in online shopping and the national supply chain.
"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."
The total value of its portfolio increased by 23 percent to $3.79 billion. This included the acquisition of two properties in Auckland.
The trust completed seven development projects over the year, and had about $250m worth of projects underway including a new site in Māngere which would be redeveloped into two new warehouses.
The global logistics company Mainfreight had committed to the larger facility, while the second warehouse would constructed on a build to-lease basis.
"Companies have gained confidence in the operating environment as the year has progressed and are once again considering their future space requirements," Dakin said.
GMT maintained a strong balance sheet with about $339m in liquidity and plenty of debt facilities with its bankers to chase other investments to compliment portfolio, he said.
The trust would distribute 5.3 cents per unit to its unit holders, compared with 6.65 cents a year ago, as the board had decided to lower its payout ratio to about 83 percent of its cash earnings.
It forecast a 4 percent increase in earnings in the current financial year and expected a payout to be at least 5.5 cents per unit.