Ann: HALFYR: GMT: Interim result shows strong mom

• Release Date: 20/11/13 11:03
• Summary: HALFYR: GMT: Interim result shows strong momentum for GMT
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					GMT
20/11/2013 09:03
HALFYR

REL: 0903 HRS Goodman Property Trust

HALFYR: GMT: Interim result shows strong momentum for GMT

Goodman (NZ) Limited, the manager of Goodman Property Trust ("GMT" or
"Trust") is pleased to announce the Trust's interim financial result for the
six months ended 30 September 2013.
An expanded property portfolio, leasing and development success and fair
value gains on certain property assets and derivative financial instruments
have all contributed to a strong interim result.

Financial and operational highlights include:
+ A $33.1 million increase in profit before tax to $70.1 million, compared to
a profit of $37.0 million in the previous corresponding period.
+ A corresponding $33.8 million or 107.0% increase in after tax profit, to
$65.4 million.
+ Distributable earnings  before tax of $50.3 million or 4.18 cents per unit
on a weighted average issued unit basis. This compares to $41.0 million or
4.07 cents per unit in the previous corresponding period.
+ Net tangible assets of 98.0 cents per unit, compared to 95.6 cents per unit
at 31 March 2013.
+ Active capital management with the sale of Gateside Industry Park for $37.2
million.
+ Accelerating levels of development activity with the commencement of 10 new
projects providing 43,238 sqm of office and warehouse space.
+ Strong leasing results with over 80,000 sqm of net rentable area (around 8%
of the total investment portfolio) secured on new or revised terms.
+ An occupancy rate of 96% and a weighted average lease term of 5.4 years at
30 September 2013.

Keith Smith, Chairman and Independent Director of Goodman (NZ) Limited said,
"The Board is encouraged by the positive momentum in the business and the
strong financial result that has been achieved. We are also pleased to have
announced new acquisition and capital management initiatives that will
further enhance the Trust."

Result overview
Strong rental cashflows from an expanded property portfolio, together with
the positive contribution from recent development completions have been the
main contributors to the 23.8% increase in total revenue, to $79.2 million.

With property operating expenses, other administrative expenses and net
finance costs materially consistent with the previous comparative period,
distributable earnings before tax have increased by 22.7% to $50.3 million.

John Dakin, Chief Executive Officer and Executive Director of Goodman (NZ)
Limited said, "A strengthening economy and rising business confidence is
having a positive impact on property market dynamics. Improving customer
demand is supporting GMT's strong operating performance and we are pleased to
be reporting a distributable earnings result that is consistent with our
guidance range."

Distributable earnings were 4.18 cents per unit before tax and 3.78 cents per
unit after tax, on a weighted average issued unit basis.

The reconciliation between the pre-tax profit of $70.1 million and
distributable earnings result of $50.3 million includes adjustments for both
cash and non-cash items. These adjustments incorporate fair value gains of
$20.2 million on certain property assets and derivative financial
instruments.

Further information, including a comprehensive bridge between distributable
earnings and profit after tax, is provided in the appendix of this
announcement.

Portfolio Performance
Improving operating conditions, with strengthening customer demand and low
levels of vacancy, is supporting an accelerated development programme.

John Dakin said "The quality of our estates and a proven development
capability is helping to attract new businesses into the portfolio and giving
existing customers the confidence to expand."

With 10 new projects announced since March 2013 the Trust has recorded the
strongest period of development activity in more than five years.

These new facilities, with an expected total project cost of $86.8 million,
will add an additional 43,238 sqm of rentable area to the portfolio on
completion.

The heightened level of customer enquiry that is driving development demand
is also contributing to positive leasing results with around 8% of the total
investment portfolio secured on new or revised terms during the last six
months.

This leasing activity has helped the Trust maintain an average occupancy rate
of around 95% during the period, with 96% being recorded at 30 September
2013. The Trust had a weighted average lease term of 5.4 years at the same
date.

Fonterra Acquisition
A significant new acquisition announced today, will further enhance the
portfolio.

Keith Smith said, "Through its relationship with Goodman Group, the Trust has
the exclusive opportunity to own one of Auckland's most significant new
office developments. With a long term lease to Fonterra the acquisition will
complement the Trust's existing investments in one of Auckland's most
strategic real estate locations."

The 16,000 sqm campus style office building is being acquired by GMT, with
settlement expected to be in February 2016, following completion of the
building and commencement of the lease.

The GMT acquisition price of $92.6 million has been established by an
independent valuation and represents an initial cash yield of 8.0%.

Corporate Trust Limited, GMT's Trustee, has approved the acquisition.

Further detail has been given in a separate announcement provided to the NZX.

Capital Management
Prudent capital management policies have enabled the Trust to retain a strong
balance sheet position across a range of market conditions.

Keith Smith said, "The sale of Gateside Industry Park in August 2013 is part
of an asset disposal programme that has achieved more than $70 million of
sales over the last two years. It's been a successful strategy that will
continue to help fund the Trust's business growth."

At 30 September 2013, GMT's loan to value ratio was 35.6% (net of cash,
unamortised bond issue costs and after adjusting for the sale of Gateside
Industry Park). Keith Smith said, "We have announced our intention to
undertake a new corporate bond issue that will further extend and diversify
the Trust's sources of debt funding. The additional capacity it provides will
also help facilitate the progression of our development and investment
programmes."

Further details of the bond offer are expected to be provided late this
month, with the offer expected to open in December 2013.

Outlook and Distribution
Today's improving operating environment, with greater levels of activity, is
consistent with earlier expectations and the Board has reaffirmed its
earnings and distribution guidance for the year.

Distributable earnings before tax are expected to range between 8.2 and 8.4
cents per unit (on a weighted average issued unit basis) and cash
distributions of at least 6.25 cents per unit are expected to be paid.

The record date for the second quarter distribution is 6 December 2013 with
the payment date being 18 December 2013. The distribution will comprise, a
cash component of 1.5625 cents per unit with associated imputation credits of
0.1714 cents per unit.

For further information please contact:
John Dakin
Chief Executive Officer
Goodman (NZ) Limited
(09) 375 6063
(021) 321 541

Andy Eakin
Chief Financial Officer
Goodman (NZ) Limited
(09) 375 6077
(021) 305 316

Keith Smith
Chairman
Goodman (NZ) Limited
(021) 920 659

Attachments provided to NZX:
1. NZX Appendix 1 and Independent Accountants' Report on Interim Financial
Statements
2. NZX Appendix 7
3. Investor Presentation
End CA:00244042 For:GMT    Type:HALFYR     Time:2013-11-20 09:03:56