Big profit jump for Macquarie Goodman property trust

Macquarie Goodman Property Trust (MGPT) today issued a core March year profit of $17.7 million, which was up 118 per cent on the previous year's $8.1m profit.

If unrealised gains on MGPT's property portfolio were added, the bottom line surplus came in at $27.8m, from $12.4m a year earlier.

Earnings per share was 10.62c a share.

Total revenue was $21.7m, against $21.1m last year. The operating surplus before tax was $19.8m, from $13.3m. A $4.1m gain, mostly from the sale of South City Shopping Centre, was also included in the figures.

Gross distributions of 9.3c a unit were paid to unitholders, plus a one-off imputation credit of 2c a unit, which lifted total gross distributions to 11.3c a unit, to be paid on September 9.

MGPT forecast a gross distribution of 9.86c a unit in the 2005/06 year.

Macquarie Goodman Ltd chairman Jim McLay said the March year was a landmark for the trust, which has been repositioned to invest in industrial and business space assets.

Key events in 2004/05 included the acquisition of $304.3m worth of property from Macquarie Goodman Group, a $316.2m rise in the value of total assets to $541.8m, and listing on the sharemarket's top board.

"In addition, MGPT has also consolidated its leading position in the industrial property market having acquired more than $380 million in property in the past 12 months," Mr McLay said.

"With a substantially enhanced and increased property portfolio, high customer retention, and low vacancy rates, we are well positioned for the 2006 financial year," Mr McLay said.

"The expansion programme we have successfully implemented this year has delivered on our strategy of investing consistently in high quality well-located properties and undertaking low risk developments," he said.

"The increased depth of our portfolio has contributed to our ability to meet the needs of new and existing customers requiring property solutions."

Leasing activity and customer retention in 2004/05 was strong, with MGPT retaining 87 per cent of customers whose leases were due to expire.

Under the management of Macquarie Goodman New Zealand, MGPT's occupancy rates improved to 99.5 per cent, from 98.3 per cent a year ago.

The portfolio's weighted average lease term also increased from 3.8 to 4.4 years at balance day.

Shortly after 11am, MGPT shares were unchanged at $1.16, having ranged between 95c and $1.23 in the past year.

- NZPA