Announcement
FLLYR: GMT: GMT active year supports strong results
08:34am
GMT
19/05/2022 08:34
FLLYR
PRICE SENSITIVE
REL: 0834 HRS Goodman Property Trust (NS)
FLLYR: GMT: GMT active year supports strong results
Goodman (NZ) Limited, the manager of Goodman Property Trust (GMT or Trust) is
pleased to announce the Trust's financial results for the year ended 31 March
2022.
GMT is benefiting from a growing digital economy and sustained demand for
warehouse and logistics space close to consumers.
Financial and other highlights include:
+ Statutory profit of $763.8 million before tax (including fair value gains
of $660.4 million from property valuations), up 17.7% on FY21
+ 22.6% increase in net tangible assets, from 212.5 cents per unit at 31
March 2021, to 260.6 cents per unit at 31 March 2022
+ Operating earnings of $118.3 million before tax, an increase of 3.0% from
FY21.
+ Cash earnings of 6.66 cents per unit and cash distributions of 5.50 cents
per unit, reflecting a payout ratio of 82.6%
+ New capital management initiatives, with further wholesale bond issuance
and the launch of a Sustainable Finance Framework supporting GMT's first
green bond issue in April 2022
+ Substantial balance sheet capacity, with a loan to value ratio of 21.3% at
31 March 2022
+ A heightened level of development activity with $300.2 million of new
projects and $426.0 million of work in progress (total project cost)
+ $299.9 million of complementary acquisitions, with the purchase of
properties in Albany, Mangere, Mt Wellington, Otahuhu and Penrose
+ Over 265,000 sqm of new leasing (around 25% of the portfolio), with an
average occupancy rate across the portfolio of 99.4% during the year.
RESULT OVERVIEW
Significant new leasing, high occupancy levels, continued rental growth, new
development commitments and complementary acquisitions have all contributed
to the Trust's strong operating performance and record statutory profit.
Keith Smith, Chairman of Goodman (NZ) Limited said, "The underlying strength
of our operating results has reinforced the value of an investment strategy
focused on urban logistics in the Auckland industrial market."
The Trust's $4.8 billion property portfolio provides essential business
infrastructure for its 220+ customers, facilitating the efficient storage and
distribution of goods and materials.
Chief Executive Officer, John Dakin said, "The pandemic has accelerated the
key structural changes that are driving demand for urban logistics space. The
expansion in e-commerce is a positive trend for the Trust with customers
extending their business operations to incorporate the growth in online
retail."
With average occupancy of 99.4% the portfolio is effectively at capacity.
The positive demand dynamic is also being reflected in an increased level of
development activity, with five new projects commencing in the last 12
months.
John Dakin said, "While the pandemic and other downside risks are likely to
constrain economic activity over the short to medium term, the quality and
scale of the portfolio, together with low gearing and a focused investment
strategy, give us confidence about the year ahead."
Guidance for FY23 includes a 4% increase in cash earnings to around 6.9 cpu,
with a 7% increase in cash distributions to approximately 5.9 cpu.
Keith Smith said, "Recognising that the world is changing rapidly, and that
today's economic outlook is more uncertain than 12 months ago, our guidance
is subject to there being no material adverse changes in market conditions or
other unforeseen events."
Further information is provided in the GMT and GMT Bond Issuer Limited Annual
Report 2022. A copy of the report, which was released today, has been
provided to the NZX and is available online at www.goodmanreport.co.nz.
PORTFOLIO PERFORMANCE
John Dakin said, "The strength of the current leasing market reflects a
growing digital economy and while the longer-term economic impacts of
COVID-19 are uncertain, the majority of our customers have adapted to the new
operating environment."
The demand for space is also being reflected in the $300.2 million of new
development projects announced during the year. The largest of the projects
are a supersite facility for Mainfreight at Favona Road, Mangere and a parcel
processing facility for NZ Post at Bush Road, Albany.
It adds to the work in progress, with seven active projects ($426.0 million
total project cost) at 31 March 2022.
John Dakin said, "Around 98% pre-committed, the current development workbook
will add almost 100,000 sqm of net lettable area to the portfolio. These new
warehouse and logistics facilities are expected to generate over $21 million
in annual rental income once complete."
LOWER CARBON FOOTPRINT
To ensure its new facilities are industry leading, the Trust is targeting a 5
Green Star Built rating for all current and future projects.
John Dakin said, "A greater awareness around climate change and wellbeing is
driving customers to seek out more energy efficient and sustainable solutions
when considering their future property requirements."
GMT is working to reduce carbon emissions across the whole property
lifecycle. Those emissions that cannot be reduced, including the embodied
carbon within all new developments, are being offset with a combination of
New Zealand and internationally sourced carbon credits.
The positive impact of ongoing carbon reduction and management projects has
also been reflected in lower emissions and an improved climate score from
CDP, the global disclosure system for environmental reporting, this year.
Keith Smith said, "The CDP rating of B and the ongoing assurance provided by
Toitu carbonzero certification for our business operations show we are making
positive and credible progress toward our 2025 emission reduction targets."
SECURING A FUTURE PIPELINE
The Trust made five acquisitions during the year, including 34 hectares of
land adjoining the Villa Maria Winery in Mangere, totalling $250.6 million.
John Dakin said, "With the remaining development land at Highbrook now fully
allocated, we're increasing our investment in strategic locations to
accommodate future demand."
The Trust has confirmed another new purchase today, acquiring the Sleepyhead
manufacturing facility at 41-71 Great South Road in Otahuhu for $49.35
million. The four hectare property, which is expected to settle later this
month, is a medium term redevelopment opportunity.
With a combination of greenfield and brownfield sites within the portfolio,
GMT's future development pipeline is estimated to total over 400,000 sqm of
urban logistics space.
SUSTAINABLE INVESTMENT
A well-capitalised balance sheet has enabled the Trust to grow sustainably.
Keith Smith said, "We have continued to be successful by remaining agile,
embracing opportunities and making positive changes to the business. These
changes have included new sustainability and capital management initiatives
that are focused on the long term."
The successful issue of a $200 million six year wholesale bond in December
2021 and the launch of a Sustainable Finance Framework in March 2022 have
strengthened the Trust and added greater financial flexibility.
Keith Smith said, "The new framework supports investment in sustainable
assets through the issue of green bonds and bank debt. Aligning new funding
with positive environmental outcomes through the development of 5 Green Star
rated properties is another step in the creation of a sustainable business
focused on long term value creation."
The first issue of $150 million of five-year green bonds was completed on 14
April 2022, following GMT's financial year end.
KEEPING TO OUR STRATEGY
GMT has continued to demonstrate that it is a robust and resilient property
business, delivering a strong operating performance while adapting to the
ongoing challenges of COVID-19.
A high-quality portfolio focused on urban logistics has positioned the Trust
to benefit from the structural trends that are driving demand for
distribution facilities close to consumers.
New capital and investment initiatives, complemented by a greater focus on
low-carbon property solutions, have further strengthened the business, and
are expected to support sustainable long-term growth.
For additional information please contact:
John Dakin
Chief Executive Officer
Goodman (NZ) Limited
(021) 321 541
James Spence
Director Investment Management
Goodman (NZ) Limited
(021) 538 934
Andy Eakin
Chief Financial Officer
Goodman (NZ) Limited
(021) 305 316
Keith Smith
Chair and Independent Director
Goodman (NZ) Limited
(021) 920 659
Attachments provided to NZX:
1. Goodman Property Trust and GMT Bond Issuer Limited Annual Report 2022
2. GMT's 2022 Result Presentation
3. NZX Result Announcement
About Goodman Property Trust:
GMT is an externally managed unit trust, listed on the NZX. It has a market
capitalisation of around $2.9 billion, ranking it in the top 20 of all listed
investment vehicles. The Trust is New Zealand's leading warehouse and
logistics space provider. It has a substantial property portfolio, with a
value of $4.8 billion at 31 March 2022. The Trust also holds an investment
grade credit rating of BBB from S&P Global Ratings.
The Manager of the Trust is Goodman (NZ) Limited, a subsidiary of the ASX
listed Goodman Group. Goodman Group is a A$68.7 billion specialist global
manager of warehouse and logistics real estate
End CA:00392299 For:GMT Type:FLLYR Time:2022-05-19 08:34:29
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