Goodman Property Trust profit falls

Goodman Property Trust CEO John Dakin

Increased interest costs and a small reduction in portfolio occupancy reduced Goodman Property Trust's interim earnings to $38.5 million from $42.7m last year.

A devaluation of $22m reduced reported net profit in the six months to September 30 to $13.2m. This compared to a loss of $11.3m in the same period last year when there was a $57m property devaluation.

The trust also signalled a $100 million sale of five-year bonds, with the ability to accept up to $50m of over subscriptions. The bonds will have a BBB plus rating.

The trust's total property assets at September 30 were worth $1.5 billion.

Operating revenue increased 5 per cent to $53.5m.

Chief executive John Dakin said the outlook for the second half of the year, while challenging, "remained positive".

The trust achieved an occupancy level of 95 per cent and a weighted average lease term of 5.7 years through concerted leasing campaigns and a focus on lease extensions.

Following the completion of the pending settlements, the level of debt within the portfolio equates to 35.5 per cent of property assets, which is at the lower end of the targeted 35 per cent to 40 per cent range.

A second quarter cash distribution of 2.125c per unit will be made on December 17.

- NZPA