Goodman Property Trust's net earnings for year ended March are down 118 percent on previous year. Photo:
Listed property investment firm Goodman Property Trust has made a net full year loss as the value of its portfolio dropped.
Key numbers for the 12 months ended March compared to a year ago:
- Net loss -$135.4m vs profit $748.6m, down 118%
- Net property income $177m vs $157.1m, up 13%
- Underlying profit $126.5m vs $118.3m, up 6.9%
- Property reduction -$237.7m vs gain $660.4m, down 136%
- Value portfolio $4.79b vs $4.77b, down 4.7%
Chief executive James Spence said rental income remained strong, demonstrating the benefits of focusing its investment in the Auckland industrial market.
"The Auckland industrial market is highly constrained, with almost zero vacancy for prime space. It is a real estate sector that has recorded double-digit rental growth over the last 12 months, with demand for space exceeding supply in many locations across the city."
He said the ongoing demand for well-located warehouse and logistics space was reflected in Goodman's leasing results.
"Cash earnings of 7.1 cents per unit was 6.6 percent ahead of last year and almost 3 percent more than our original guidance."
Goodman chair Keith Smith said increasing interest rates had affected investment yields, but the company's portfolio remained strong.
"High occupancy levels, sustained rental growth, new development completions and strategic acquisitions have all contributed to a 6.9 percent increase in operating earnings, to $126.5 million before tax," Smith said.
"Guidance for FY24 included a 4 percent increase in cash earnings to around 7.4 cents per unit with a 5 percent increase in cash distributions to approximately 6.2 cents per unit."