GMT strong operating performance drives earnings growth
1
nzx release+
GMT strong operating performance drives earnings growth
Date 23 November 2023
Release Immediate
Goodman (NZ) Limited, the manager of Goodman Property Trust (GMT or Trust) is
pleased to announce the Trust’s financial and operational results for the six months
to 30 September 2023.
Customer demand for well-located warehouse and logistics space has driven significant
revenue and earnings growth over the last six months.
Key results include:
+ A 12.3% increase in operating earnings
1
, to $61.3 million after tax
+ A 6.5% increase in underlying cash earnings
2
to 3.75 cents per unit and guidance
for the full year reaffirmed at around 7.4 cents per unit
+ Distributions of 3.1 cents per unit, consistent with reaffirmed full year guidance of
6.2 cents per unit
+ A $226.5 million reduction in the fair value of GMT’s property portfolio to $4.7 billion
at 30 September 2023, following independent valuations
+ An interim statutory loss of $163.2 million after tax (including fair value losses from
property valuations), compared to a profit of $41.1 million at 30 September 2022
+ Net tangible assets of 230.5 cents per unit
+ A strong balance sheet, with a loan to value ratio
3
of 28.7% and $538 million of
available liquidity at 30 September 2023
+ Sustained customer demand with over 93,500 sqm of new leasing (8.3% of the
stabilised portfolio), occupancy of 99.6% and a weighted average lease term of
more than six years
+ The completion of three fully leased development projects in Māngere, Mt Roskill
and East Tāmaki providing almost 61,500 sqm of sustainable warehouse and
logistics space, with a further $324.5 million of work in progress (total project cost).
YEAR TO DATE
High occupancy levels, new development completions, continued rental growth and a lower
tax expense have all contributed positively to a strong first half operating result.
Chief Executive Officer, James Spence said, “GMT’s strong operating performance over the
last six months reflects the resilience of the portfolio and customer demand for more efficient
and sustainable logistics space, close to consumers.
Underlying cash earnings of 3.75 cents per unit for the half year was in line with our guidance
and 6.5% higher than the previous corresponding period.”
1
Operating earnings is a non-GAAP financial measure included to provide an assessment of the performance of GMT’s principal
operating activities. Calculation is as set out in GMT’s Profit or Loss statement and in note 3.1 of GMT’s financial statements.
2
Underlying cash earnings is a non-GAAP financial measure that assesses underlying cashflows, on a per unit basis, after
adjusting for certain items. The calculation is set out in GMT’s 2024 Interim Results Presentation.
3
Loan to value ratio is a non-GAAP financial measure used to assess the strength of GMT’s balance sheet. The calculation is set
out in note 2.6 of GMT’s financial statements.
2
Historically low vacancy rates and limited new supply are contributing to a highly
constrained Auckland industrial market which is driving positive leasing outcomes for GMT.
James Spence said, “A continuation of the current demand dynamic is expected to
support full year underlying cash earnings of around 7.4 cents per unit, a 4% increase on
the 7.1 cents per unit achieved in FY23.”
Full year cash distributions have also been reaffirmed at 6.2 cents per unit, reflecting an
expected pay-out ratio of around 84%.
While the operating performance of the Trust has been very strong, a 4.6% reduction in the
fair value of its property portfolio has contributed to a statutory loss for the six months.
James Spence said, “Despite the impact of higher interest rates on investment yields,
underlying property market fundamentals remain strong for Auckland warehouse and
logistics space.”
Further information is provided in the GMT and GMT Bond Issuer Limited Interim Report
2024. A copy of the report, which was released today, has been provided to the NZX and
is available at:
https://bit.ly/3t80ciJ
POSITIVE LEASING ENVIRONMENT
With high barriers to entry restricting new supply, the continued execution of an investment
strategy exclusively focused on the Auckland industrial market has underpinned GMT’s
positive operating result.
Like for like net property income growth of 6.2% and a further 3.5% increase in valuer
assessed market rents for GMT, demonstrate the strength of customer demand.
James Spence said, “GMT is achieving strong rental growth as customers seek to improve
supply chain resilience and recognise the productivity benefits of well-located and
operationally efficient facilities.
With occupancy around 100% there are only limited options within the portfolio for new
space requirements. In addition, the level of under-renting within the portfolio remains
substantial at around 22.8%. Capturing this potential rent reversion will be a significant
driver of GMT’s future revenue growth.”
SUSTAINABLE, DEVELOPMENT DRIVEN GROWTH
The growth in demand for urban logistics space is also reflected in the large volume of
development work being undertaken by GMT.
James Spence said, “Three fully leased development projects with a total cost of $228
million have completed since 31 March 2023, contributing to GMT’s growing rental
cashflows.”
The new facilities are expected to achieve at least a 5 Green Star Built rating, considered
New Zealand excellence, once the independent assessment process is completed.
James Spence said, “By investing in sustainable property solutions, GMT’s development
activity is improving the quality of the portfolio. It is also lowering customers carbon
emissions with well-located, more efficient workspaces that contribute to greater
productivity and reduced operating costs.”
The development workbook includes four active projects. With a total project cost of
$324.5 million these developments will add a further 68,000 sqm of high-quality urban
logistics space to the portfolio over the next 12 months. Over 90% pre-committed and with
an average lease term of more than 14 years, the new projects include additional facilities
for existing customers Mainfreight and NZ Post.
3
DISCIPLINED CAPITAL MANAGEMENT
With substantial liquidity in its debt facilities, the Trust has the financial stability and
flexibility required to manage risks and take advantage of new investment opportunities.
At 30 September 2023, the Trust had a loan to value ratio of 28.7% and committed gearing
of 30.5%. Debt facilities were 71.2% drawn and 73.3% hedged for the next 12 months.
Refinancing of the bilateral bank facilities in November 2023 (following the interim balance
date) has extended the weighted term to expiry of GMT’s drawn debt, to 3.5 years.
BUSINESS OUTLOOK
The strength of GMT’s interim operating result demonstrates the resilience of the business
and the benefits of an investment strategy focused on urban logistics property.
James Spence said, “Strong market fundamentals, underpinned by supply constraints and
sustained customer demand supports our full year guidance. Underlying cash earnings
growth of around 4% is reaffirmed and the forecast 5% increase in cash distributions is
also reiterated.
The longer-term outlook is more uncertain as the economy adapts to higher interest rates
and inflation, and heightened geo-political risks. However, GMT’s strong balance sheet,
premium property portfolio and long-term customer relationships leave it well positioned to
adapt to a more changeable operating environment.”
For additional information please contact:
James Spence Andy Eakin
Chief Executive Officer Chief Financial Officer
Goodman (NZ) Limited Goodman (NZ) Limited
(021) 538 934 (021) 305 316
Attachments provided to NZX:
1. Goodman Property Trust and GMT Bond Issuer Limited Interim Report 2024
2. GMT’s 2024 Interim Result Presentation
3. NZX Interim Result Announcement
About Goodman Property Trust:
GMT is an externally managed unit trust, listed on the NZX. It has a market capitalisation of around $3.0 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 $4.7 billion at 30 September 2023. 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 an
A$82.9 billion specialist global manager of warehouse, logistics and data centre real estate.
---
GOODMAN PROPERTY TRUST INTERIM REPORT 2024
GMT BOND ISSUER LIMITED INTERIM REPORT 2024
EVERY
STEP
COUNTS
GMT’s $4.7 billion urban logistics portfolio is exclusively
invested in the Auckland industrial market and provides its
215+ customers with essential supply chain infrastructure.
CONTENTS
3
OVERVIEW
Result highlights 3
Key performance indicators 4
Chair and Chief
Executive Officer’s report 5
11
FINANCIAL RESULTS
Goodman Property Trust
Financial Statements 1 1
GMT Bond Issuer Limited
Financial Statements 35
46
OTHER INFORMATION
Investor relations 46
Glossary 47
Business directory 48
Highbrook Business Park adjoins the Tāmaki River and provides almost 500,000 sqm of high-quality warehouse and logistics space.
GOODMAN PROPERTY TRUST
INTERIM REPORT ā5ā0
GMT BOND ISSUER LIMITED
INTERIM REPORT ā5ā0
2
NET PROPERTY INCOME
13.5% increase in rental revenue
$100.1m
FY24 GUIDANCE REAFFIRMED
4% increase in underlying cash earnings
to around
7. 4 c p u
LOSS AFTER TAX
Including a (4.6%) valuation movement
($163.2m)
OPERATING EARNINGS AFTER TAX
12.3% increase
$61.3m
DEVELOPMENT WORK IN PROGRESS
Four active brownfield
redevelopment projects
$324.5m
PORTFOLIO UNDER-RENTING
Potential rent reversion to market
22.8%
High occupancy levels, new
development completions, continued
rental growth and a lower tax
expense, have all contributed to a
strong first half operating result.
R E S U LT
HIGHLIGHTS
LOAN TO VALUE RATIO
20% to 30% preferred through cycle range
28 .7%
PORTFOLIO OCCUPANCY
1.2 million sqm total portfolio size
99.6%GOODMAN PROPERTY TRUST
INTERIM REPORT ā5ā0
GMT BOND ISSUER LIMITED
INTERIM REPORT ā5ā0
3
FINANCIAL RESULTSOTHER INFORMATIONOVERVIEW
Result highlights
KEY PERFORMANCE
INDICATORS
Operating earnings
Operating earnings is a non-GAAP
financial measure included to provide
an assessment of the performance of
GMT’s principal operating activities.
Calculation of operating earnings
is as set out in GMT’s Profit or Loss
statement on page 12 of this report.
Underlying cash earnings
Underlying cash earnings is a non-
GAAP financial measure that assesses
underlying cashflows, on a per unit basis,
after adjusting for certain items. The
calculation is set out in GMT’s FY24
Interim Results Presentation, released
on 23 November 2023.
Loan to value ratio
Loan to value ratio is a non-GAAP
financial measure used to assess
the strength of GMT’s balance
sheet. The calculation is set out
in note 2.6 of GMT’s financial
statements on page 25 of this report.
OVERVIEW
Key performance indicators
FINANCIAL RESULTSOTHER INFORMATION
4
GOODMAN PROPERTY TRUST
INTERIM REPORT 2024
GMT BOND ISSUER LIMITED
INTERIM REPORT 2024
$ million
30 September
2023
30 September
2022% change
(Loss)/profit before tax ($m) (153.4)48.8(414.3)
(Loss)/profit after tax ($m)(16 3.2)41.1( 4 9 7. 1 )
Movement in fair value of investment property ($m) (226.5)––
Operating earnings before tax ($m)
1
68.164.35.9
Operating earnings after tax ($m)
2
61.354.612.3
Underlying cash earnings per unit (cpu) 3 .7 53.526.5
Cash distribution per unit (cpu)3.102.955.1
Net tangible assets (cpu)230.52 6 0 .7(11.6)
Loan to value ratio (%)
3
2 8 .723.22 3 .7
GMT – S&P Global Ratings credit ratingBBBBBB–
Bonds – S&P Global Ratings credit ratingBBB+BBB+–
1
Refer to GMT’s Profit or Loss statement for further information.
2
Refer to note 3.1 of GMT’s financial statements for further information.
3
Refer to note 2.6 of GMT’s financial statements for further information.
Customer demand for well-located warehouse
and logistics space has driven significant revenue
and earnings growth over the last six months,
while sustainability initiatives have continued to
enhance the business.
The Trust’s interim operating results,
including a strong 6.5% increase in
underlying cash earnings to 3.75 cents
per unit, reflects the resilience of the
portfolio and customer demand for more
efficient and sustainable logistics space,
close to consumers.
High occupancy levels, new development
completions, continued rental growth and
a lower tax expense have all contributed
to a strong first half operating result.
Underlying cash earnings guidance
for the full year is reaffirmed at around
7.4 cents per unit. The guidance
represents a 4% increase on the 7.1 cents
per unit achieved in FY23.
Full year cash distributions have also
been reaffirmed at 6.2 cents per unit,
reflecting an expected pay-out ratio of
a r o u n d 8 4% .
GMT delivers
strong first half
operating result
James Spence, Chief Executive Officer and John Dakin, Chair and Non-executive Director
GOODMAN PROPERTY TRUST
INTERIM REPORT ā5ā0
GMT BOND ISSUER LIMITED
INTERIM REPORT ā5ā0
5
FINANCIAL RESULTSOTHER INFORMATIONOVERVIEW
Chair and CEO’s report
Result summary
With high barriers to entry restricting new
supply, the continued execution of an
investment strategy exclusively focused
on the Auckland industrial market has
delivered strong revenue growth for GMT.
A 13.5% increase in net property income
and a lower effective tax rate of 10%
during the period, have more than offset
higher interest costs, contributing to a
12.3% increase in operating earnings
after tax of $61.3 million.
Additional deductions for GMT's
development activity, new leasing on
the stabilised portfolio, and a change to
diminishing value for building depreciation
have contributed to the lower tax expense.
While the operating performance of the
Trust has been extremely pleasing, a
$226.5 million or 4.6% reduction in the
fair value of its property assets (following
independent valuations of all properties)
has resulted in an interim statutory loss
after tax of $163.2 million.
Despite the impact of rising interest rates
on investment yields, underlying property
market fundamentals remain sound.
Historically low vacancy rates and limited
new supply are contributing to a highly
constrained Auckland industrial market
which is driving strong rental growth.
The positive leasing dynamic has
contributed to a further 3.5% increase
in valuer assessed market rents for GMT
over the last six months. This continued
rental growth has mitigated some of the
valuation impact of a 40bps softening in
the portfolio capitalisation rate to 5.6%.
The interim valuation has been the
principal driver of a 6.0% reduction in
net tangible assets since 31 March 2023,
to 230.5 cents per unit.
Disciplined capital management
Retaining substantial liquidity within
its debt facilities, the Trust has the
financial stability and flexibility required
to manage risks and take advantage of
new investment opportunities.
At 30 September 2023, the Trust
had a loan to value ratio of 28.7% and
committed gearing of 30.5%. Debt
facilities were 71.2% drawn and 73.3%
hedged for the next 12 months.
Refinancing of the bilateral bank facilities
in November 2023 (following the interim
balance date) has extended the weighted
term to expiry of GMT’s drawn debt, to
3.5 ye a r s .
The highly sustainable Tāwharau Lane development at Highbrook Business Park achieved a 6 Green Star
Design rating from the New Zealand Green Building Council.
The twin North Point warehouses at Highbrook Business Park completed in July 2023. They provide almost
8,000 sqm of office and warehouse space.
GOODMAN PROPERTY TRUST
INTERIM REPORT 2024
GMT BOND ISSUER LIMITED
INTERIM REPORT 2024
6
FINANCIAL RESULTSOTHER INFORMATIONOVERVIEW
Chair and CEO’s report
The impacts of new
leasing activity and
regular rent reviews
have driven like-for-
like net property
income growth of
6.2% over the last
six months.
The impacts of new leasing activity and
regular rent reviews have driven like-
for-like net property income growth of
6.2% over the last six months. Market
rents have continued to increase and
the level of under-renting (the difference
between contract and market rentals)
within the portfolio remains substantial
at around 22.8%
1
.
The potential rent reversion is expected
to be a significant driver of GMT’s future
revenue growth, as leases are reviewed
to market, and new contracts are secured
at the higher rates.
With rent increases and general inflation
contributing to higher operating costs
for customers, Goodman is working
with businesses within the portfolio to
help drive greater productivity from
their facilities.
These measures include the rollout of
sustainability initiatives such as solar
energy and LED lighting upgrades,
as well as facilitating specialist space
planning and automation advice to
improve efficiency.
Positive leasing environment
GMT’s $4.7 billion urban logistics
portfolio is exclusively invested in the
Auckland industrial market and provides
its 215+ customers with essential supply
chain infrastructure.
While a slowing economy may be
impacting some business sectors,
the structural trends that are driving
customer demand for operationally
efficient and sustainable logistics
space have continued to support strong
leasing results for the Trust.
Over 93,500 sqm of existing space,
around 8.3% of the stabilised portfolio,
has been secured on new or revised terms
since 31 March 2023. With occupancy
close to 100% there are only limited
options within the portfolio for new space
requirements.
The table below summarises key portfolio
metrics at 30 September 2023.
Value
($ million)
Rentable
area (sqm)
Occupancy
(%)
Weighted
average lease
term (years)
Weighted
average cap
rate (%)
Core portfolio3 ,7 70 . 99 5 7, 9 4 799.96.25.5
Value-add estates638.517 2 ,76 398.04.56.0
Total stabilised portfolio 4,409.41,130,71099.65.9 5.6
Total investment portfolio
(including land and active developments)
4,685.41,194,36299.66.45.6
1
As assessed by independent valuers at 30 September 2023.
GMT's substantial property portfolio provides over one million sqm of warehouse and logistics space.
GOODMAN PROPERTY TRUST
INTERIM REPORT ā5ā0
GMT BOND ISSUER LIMITED
INTERIM REPORT ā5ā0
7
FINANCIAL RESULTSOTHER INFORMATIONOVERVIEW
Chair and CEO’s report
The growth in demand for urban logistics
space is also reflected in the large volume of
development work being undertaken by GMT.
Development driven growth
The growth in demand for urban logistics
space is also reflected in the large volume
of development work being undertaken
by GMT.
Three fully leased projects with a total
project cost of $228 million, have
completed since 31 March 2023:
1. The 35,900 sqm Mainfreight
Supersite at Favona Road Estate,
Māngere
2. NZ Post’s 17,700 sqm facility at
Roma Road Estate in Mt Roskill
3. The multi-warehouse, Tāwharau Lane
development at Highbrook Business
Park in East Tāmaki.
All facilities are expected to achieve
at least a 5 Green Star Built rating,
considered New Zealand excellence, once
the independent assessment process
is completed. The certification from the
New Zealand Green Building Council
confirms that these are low emission,
resource efficient and resilient buildings.
By investing in sustainable property
solutions, GMT’s development activity is
improving the quality of the portfolio. It is
also lowering customers carbon emissions
with more efficient workspaces that
contribute to greater productivity and
reduced operating costs.
The Trust's development programme
includes four active projects. More
than 90% pre-committed and with a
total project cost of $324.5 million,
these developments are all brownfield
regeneration projects.
Located close to key transport
infrastructure and large consumer
catchments in Albany, Mt Roskill and
Ōtāhuhu, this pipeline of work will add a
further 68,000 sqm of prime warehouse
and logistics space to the portfolio over
the next 12 months.
The projects include additional facilities
for Mainfreight and NZ Post, the Trust's
largest customers.
GMT's development programme includes four active projects, providing 68,000 sqm of prime
warehouse of logistics space.
Recently completed Mainfreight Supersite at Favona Road Estate. The global logistics provider is one of
the Trust's largest customers, leasing four facilities within the portfolio.
GOODMAN PROPERTY TRUST
INTERIM REPORT ā5ā0
GMT BOND ISSUER LIMITED
INTERIM REPORT ā5ā0
8
FINANCIAL RESULTSOTHER INFORMATIONOVERVIEW
Chair and CEO’s report
The strength of
GMT’s interim
operating result
demonstrates
the resilience of
the business and
the benefits of an
investment strategy
focused on urban
logistics property.
Governance changes
Recently announced Board changes
complete a three-year renewal programme
that has included the appointment of
Laurissa Cooney and David Gibson as
Independent Directors.
As signalled in the 2023 Annual Report,
Keith Smith has now stepped down as
Chair. He continues as an Independent
Director but intends this to be his last term
on the Board.
Non-executive Director Phil Pryke retired
on 30 September 2023, reducing the
size of the Board from seven directors
to six. With four of the six directors being
independent, a majority of Independent
Directors is maintained.
The contribution of Keith and Phil
to the ongoing success of GMT was
acknowledged at the Annual Meeting
in June 2023. Both Directors have
played significant roles overseeing the
repositioning of GMT as an industrial
property specialist, and contributing to
the strong governance that has delivered
positive and sustainable business growth.
As announced to the NZX on 29 May
2023, Non-executive Director John
Dakin is the new Chair with Independent
Director David Gibson, Deputy Chair.
Both appointments were unanimously
approved by the Board.
Business outlook
The strength of GMT’s interim operating
result demonstrates the resilience of the
business and the benefits of an investment
strategy focused on urban logistics
property.
Strong market fundamentals, underpinned
by supply constraints and sustained
customer demand, continue to drive
GMT’s operating performance.
A continuation of the positive leasing
environment is expected to support full
year underlying cash earnings of around
7.4 cents per unit, with forecast cash
distributions of 6.2 cents per unit.
The longer-term outlook is more uncertain
as the economy adapts to higher interest
rates and inflation, and heightened geo-
political risks. By remaining disciplined
with investment decisions and staying
focused on customer relationships, the
Trust is set to benefit from the structural
trends that are driving demand for well-
located, sustainable warehouse and
logistics space.
James Spence
Chief Executive Officer
John Dakin
Chair and Non-executive Director
The redevelopment of Roma Road Estate is well progressed with NZ Post's new facility now complete. The three adjoining warehouses are due for completion in mid-2024.
GOODMAN PROPERTY TRUST
INTERIM REPORT ā5ā0
GMT BOND ISSUER LIMITED
INTERIM REPORT ā5ā0
9
FINANCIAL RESULTSOTHER INFORMATIONOVERVIEW
Chair and CEO’s report
GMT's sustainability programme includes
initiatives to boost biodiversity, like these
beehives at Highbrook Business Park.
10
GOODMAN PROPERTY TRUST
INTERIM REPORT 2024
GMT BOND ISSUER LIMITED
INTERIM REPORT 2024
INTERIM
FINANCIAL
STATEMENTS
For the six months ended 30 September 2023
Goodman Property Trust
GOODMAN PROPERTY TRUST
INTERIM REPORT 2024
GMT BOND ISSUER LIMITED
INTERIM REPORT 2024
11
OTHER INFORMATIONOVERVIEWFINANCIAL RESULTS
CONTENTS
Profit or loss 12
Balance sheet 13
Cash flows 14
Changes in equity 15
General information 16
Notes to the financial statements
1. Investment property 17
2. Borrowings 21
3. Earnings per unit and
net tangible assets 25
4. Derivative financial
instruments 27
5. Tax 28
6. Related party disclosures 29
7. Commitments and
contingencies 30
8. Financial risk management 31
9. Operating segments 31
Independent auditor’s
review report 32
The Board of Goodman (NZ) Limited, the Manager of Goodman Property Trust,
authorised these financial statements for issue on 22 November 2023.
For and on behalf of the Board:
John Dakin Laurissa Cooney
Chair Chair, Audit Committee
$ millionNote
6 months
30 Sep 23
6 months
30 Sep 22
Property income1.1119.510 4.6
Property expenses(19.4)(16.4)
Net property income10 0.188.2
Interest cost2.1( 2 1 .7 )(13.4)
Interest income2.10.30.1
Net interest cost(21.4)(13.3)
Administrative expenses(1.8)( 1 .7 )
Manager’s base fee6.1(8.8)(8.9)
Operating earnings before other income / (expenses) and tax68.164.3
Other income / (expenses)
Movement in fair value of investment property1.3(226.5)–
Movement in fair value of financial instruments4.15.0(15.5)
(Loss) / profit before tax(153.4)48.8
Ta x
Current tax on operating earnings5.1(6.8)( 9 .7 )
Deferred tax5.1(3.0)2.0
Total tax(9.8)( 7.7 )
(Loss) / profit after tax attributable to unitholders(163.2)41.1
There are no items of other comprehensive income, therefore (loss) / profit after tax attributable to unitholders equals total comprehensive (loss) / income attributable to unitholders.
CentsNote
6 months
30 Sep 23
6 months
30 Sep 22
Basic and diluted earnings per unit after tax3.1(11.63)2.93
Profit or loss
For the six months ended 30 September 2023
Goodman Property Trust Interim Financial Statements
For the six months ended 30 September 2023
GOODMAN PROPERTY TRUST
INTERIM REPORT 2024
12
$ millionNote30 Sep 2331 Mar 23
Non-current assets
Investment property1.44,685.44 ,7 91. 2
Other assets2 .72.8
Derivative financial instruments4.255.342.9
Total non-current assets4 ,74 3 . 44,836.9
Current assets
Debtors and other assets12.610.4
Cash5.36.6
Total current assets17. 917. 0
Total assets4 ,761 .34,853.9
Non-current liabilities
Borrowings2.21,269.01,159.1
Lease liabilities2.560.362.6
Derivative financial instruments4.29.610.1
Deferred tax liabilities33.030.0
Total non-current liabilities1,371.91,261.8
Current liabilities
Borrowings2.210 0.010 0.0
Creditors and other liabilities4 9.34 5.1
Lease liabilities2.53.33.3
Derivative financial instruments4.2–0.5
Current tax payable1 .72.5
Total current liabilities154.3151.4
Total liabilities1,526.21,413.2
Net assets3,235.13 , 4 4 0 .7
Total equity3,235.13 , 4 4 0 .7
Balance sheet
As at 30 September 2023
Goodman Property Trust Interim Financial Statements
For the six months ended 30 September 2023
GOODMAN PROPERTY TRUST
INTERIM REPORT 2024
13
$ million
6 months
30 Sep 23
6 months
30 Sep 22
Cash flows from operating activities
Property income received114.9108.9
Property expenses paid( 2 4 .7 )(23.8)
Interest income received0.30.1
Interest costs paid on borrowings(21.1)(10.2)
Interest costs paid on lease liabilities( 1 .7 )( 1 .7 )
Administrative expenses paid(1.8)(1.6)
Manager’s base fee paid(8.8)(8.9)
Manager’s performance fee paid–( 1 5 .7 )
Net GST received / (paid)0.6(0.6)
Tax paid( 7. 6 )(8.1)
Net cash flows from operating activities50.138.4
Cash flows from investing activities
Payments for the acquisition of investment properties–(50.1)
Capital expenditure payments for investment properties(99.2)( 7 7. 9 )
Holding costs capitalised to investment properties(10.8)(8.3)
Net cash flows from investing activities(110.0)(136.3)
Cash flows from financing activities
Proceeds from borrowings915.04 4 9.0
Repayments of borrowings(814.0)(322.0)
Proceeds from the issue of units–1 5 .7
Distributions paid to unitholders(42.4)(39.9)
Net cash flows from financing activities58.6102.8
Net movement in cash(1.3)4.9
Cash at the beginning of the period6.63.6
Cash at the end of the period5.38.5
Cash flows
For the six months ended 30 September 2023
Goodman Property Trust Interim Financial Statements
For the six months ended 30 September 2023
GOODMAN PROPERTY TRUST
INTERIM REPORT 2024
14
Note
Distribution
per unit
(cents)
Number
of units
(million)
Units
($ million)
Unit based
payments
reserve
($ million)
Retained
earnings
($ million)
To t a l
($ million)
As at 1 April 20221 , 3 9 7. 31,630.11 5 .72,011.63 , 6 5 7. 4
Loss after tax––(135.4)(135.4)
Distributions paid to unitholders5.800––(81.3)(81.3)
Issue of units
Manager’s performance fee – settled66.01 5 .7( 1 5 .7 )––
As at 31 March 20231,403.31,645.8–1,794.93 , 4 4 0 .7
Loss after tax––(163.2)(163.2)
Distributions paid to unitholders3.025––(42.4)(42.4)
As at 30 September 20231,403.31,645.8–1,589.33,235.1
There are no items of other comprehensive income to include within changes in equity, therefore loss after tax equals total comprehensive loss.
Subsequent event
On 22 November 2023, a cash distribution of 1.550 cents per unit with 0.201231 cents per unit of imputation credits attached was declared. The record date for the
distribution is 30 November 2023 and payment will be made on 14 December 2023.
Changes in equity
For the six months ended 30 September 2023
Goodman Property Trust Interim Financial Statements
For the six months ended 30 September 2023
GOODMAN PROPERTY TRUST
INTERIM REPORT 2024
15
General information
For the six months ended 30 September 2023
Reporting entity
Goodman Property Trust (“GMT” or the “Trust”) is a unit trust established on
23 April 1999 under the Unit Trusts Act 1960. GMT is domiciled in New Zealand.
The Manager of the Trust is Goodman (NZ) Limited (“GNZ”) and the address of its
registered office is Level 2, 18 Viaduct Harbour Avenue, Auckland.
The interim financial statements presented are consolidated financial statements
for Goodman Property Trust and its subsidiaries (the “Group”).
GMT is listed on the New Zealand Stock Exchange (“NZX”), is an FMC reporting
entity for the purposes of the Financial Markets Conduct Act 2013 (“FMCA”) and
the Financial Reporting Act 2013 and is an Equity Security for the purposes of the
NZX Main Board Listing Rules.
The Group’s principal activity is to invest in real estate in New Zealand.
Covenant Trustee Services Limited is the Trustee and Supervisor for GMT.
The interim financial statements for the six months ended 30 September 2023
are unaudited. Comparative balances for 30 September 2022 are unaudited,
whilst comparative balances as at 31 March 2023 are audited.
Basis of preparation and measurement
The interim financial statements have been prepared in accordance with
New Zealand Generally Accepted Accounting Practice (“NZ GAAP”) and
comply with International Accounting Standard 34 ‘Interim Financial Reporting’
and New Zealand Equivalent to International Accounting Standard 34 ‘Interim
Financial Reporting’.
The interim financial statements of the Group have been prepared in accordance
with the requirements of the NZX Main Board Listing Rules.
The interim financial statements do not include all of the notes included in the
annual financial statements. Accordingly, these notes should be read in conjunction
with the annual financial statements for the year ended 31 March 2023, prepared
in accordance with New Zealand Equivalents to International Financial Reporting
Standards (“NZ IFRS”) and International Financial Reporting Standards (“IFRS”).
The accounting policies and methods of computation used in the preparation of
these interim financial statements are consistent with those used in the financial
statements for the year ended 31 March 2023.
The interim financial statements have been prepared on the historical cost basis
except for assets and liabilities stated at fair value as disclosed.
The interim financial statements are in New Zealand dollars, the Group’s functional
currency, unless otherwise stated.
Basis of consolidation
The financial statements have eliminated in full all intercompany transactions,
intercompany balances and gains or losses on transactions between group entities.
New accounting standards now adopted
There have been no new accounting standards that are applicable to these financial
statements.
New Zealand climate-related disclosure framework
The Financial Sector (Climate-related Disclosures and Other Matters) Amendment
Act 2021 (the Act) has established a climate-related disclosure framework for
New Zealand and makes climate-related disclosures mandatory for climate
reporting entities, which includes the Trust. The Act provides a mandate for the
External Reporting Board (XRB) to issue a climate-related disclosure framework.
In December 2022 the XRB issued the following standards:
+Aotearoa New Zealand Climate Standard 1 Climate-related Disclosures;
+Aotearoa New Zealand Climate Standard 2 Adoption of Aotearoa New Zealand
Climate Standards; and
+Aotearoa New Zealand Climate Standard 3 General Requirements for Climate-related
Disclosures.
The Trust's first climate-related disclosures will be required for the year ending
31 March 2024.
Goodman Property Trust Interim Financial Statements
For the six months ended 30 September 2023
GOODMAN PROPERTY TRUST
INTERIM REPORT 2024
16
Notes to the financial statements
For the six months ended 30 September 2023
1. Investment property
Property income is earned from investment property leased to customers.
1.1 Property income
$ million
6 months
30 Sep 23
6 months
30 Sep 22
Gross lease receipts105.695.2
Service charge income15.312.6
Straight line rental adjustments2.21.0
Amortisation of capitalised lease incentives(3.6)(4.2)
Property income119.5104.6
1.2 Future contracted gross lease receipts
Gross lease receipts that the Group has contracted to receive in future years are set out below. These leases cannot be cancelled by the customer.
$ million30 Sep 2331 Mar 23
Year 1212.3201.2
Year 220 9.0200.0
Year 3186.5181.4
Year 416 3.6158.3
Year 514 3 .714 0.4
Year 6 and later708.66 7 7. 4
Total future contracted gross lease receipts1,623.71 ,5 5 8 .7
Goodman Property Trust Interim Financial Statements
For the six months ended 30 September 2023
GOODMAN PROPERTY TRUST
INTERIM REPORT 2024
17
1. Investment property (continued)
1.3 Movement in fair value of investment property
Movement in fair value of investment property for the period is summarised below.
$ million
6 months
30 Sep 23
6 months
30 Sep 22
Stabilised properties(210.6)–
Investment property under development(15.9)–
Total movement in fair value of investment property(226.5)–
1.4 Total investment property
This table details the total investment property value.
$ million30 Sep 2331 Mar 23
Core
Highbrook Business Park, East Tāmaki2,16 9.82,226.3
Savill Link, Ōtāhuhu525.65 41.6
M20 Business Park, Manukau348.9428.2
The Gate Industry Park, Penrose283.8395.4
Westney Industry Park, Māngere202.82 1 1 .7
Favona Road, Māngere14 0.0–
Roma Road, Mount Roskill10 0.0–
Total core3,7 70. 93,803.2
Value-add638.5513.6
Total stabilised investment property4,409.44,316.8
Investment property under development276.0474 . 4
Total investment property4,685.44 ,7 91 . 2
Goodman Property Trust Interim Financial Statements
For the six months ended 30 September 2023
GOODMAN PROPERTY TRUST
INTERIM REPORT 2024
18
Notes to the financials statements (continued)
1. Investment property (continued)
1.4 Total investment property (continued)
Included within stabilised properties is a gross-up equivalent to lease liabilities of $63.9 million (31 March 2023: $65.9 million).
Included within investment property under development is $86.5 million of land (31 March 2023: $87.1 million) and $189.5 million of developments (31 March 2023:
$387.3 million).
During the period three properties at The Gate Industry Park valued at $91.9 million and one property at M20 Business Park valued at $70.2 million were reclassified from
Core properties to Value-add properties. The change reflects the future redevelopment potential of these properties.
GMT’s estates are classified as either “core” or “value-add” estates.
Core
Those estates within the portfolio which largely consist of modern, high-quality logistics and industrial properties.
Value -add
Those estates which generally consist of older properties that are likely to have redevelopment potential. Redevelopment of the properties to realise their maximum future
value may require a change in use.
Significant transactions
During the six months ended 30 September 2023, three developments were completed and were independently valued at a total of $280.5 million.
1.5 Valuation of investment property
Key judgement
The carrying value of stabilised properties is the fair value of the property as determined by expert independent valuers. The fair values presented are based on market
values, being the estimated amount for which a property could be exchanged on the date of valuation between a willing buyer and a willing seller in an arm’s length
transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion. If this information is not available, alternative
valuation methods are used, such as; recent prices on less active markets; the capitalisation method, which determines fair value by capitalising a property’s sustainable
net income at a market derived capitalisation rate with capital adjustments made where appropriate; or discounted cash flow projections (“DCF”), which discount
estimates of future cash flows by an appropriate discount rate to derive the fair value. The key assumptions used in the valuations are derived from recent comparable
transactions to the greatest extent possible; however, all three of the valuation methods rely upon unobservable inputs in determining fair value for all investment property.
Developments completed in the period, or adequately progressed to allow fair value to be reliably determined, have been independently valued. All other developments
are held at cost and tested for impairment.
Goodman Property Trust Interim Financial Statements
For the six months ended 30 September 2023
GOODMAN PROPERTY TRUST
INTERIM REPORT 2024
19
Notes to the financials statements (continued)
1. Investment property (continued)
1.5 Valuation of investment property (continued)
The key valuation inputs used to measure fair value of investment property and investment property under development held at fair value are disclosed below, along with the
weighted average value for each input:
Weighted average
valuation input value
Measurement
sensitivity
Key valuation inputDescription30 Sep 2331 Mar 23
Increase
in the input
Decrease
in the input
Market capitalisation rateThe capitalisation rate applied to the market rental to assess a property’s
value. Derived from similar transactional evidence considering location,
weighted average lease term, customer covenant, size and quality of the
property. Used in the capitalisation method.
5.6%5.2%DecreaseIncrease
Market rentalThe valuer’s assessment of the annual net market income per square metre
(“psm”) attributable to the property; includes both leased and vacant areas.
Used in both the capitalisation method and the DCF method.
$186 psm$177 psmIncreaseDecrease
Discount rateThe rate applied to future cash flows; it reflects transactional evidence from
similar types of property assets. Used in the DCF method.
7. 6 %7. 2 %DecreaseIncrease
Rental growth rateThe rate applied to the market rental over the 10-year cash flow projection.
Used in the DCF method.
3.0% p. a .3.0% p . a .IncreaseDecrease
Terminal capitalisation rateThe rate used to assess the terminal value of the property. Used in the
DCF method.
5.8%5.5%DecreaseIncrease
The market capitalisation rate is the main determinant of value in the valuation of investment property. The impact of a 0.5% increase in the market capitalisation rate from
5.6% to 6.1%, assuming all other valuation inputs remain unchanged, would be equivalent to a decrease of $361.4 million / 7.7% in the fair value of investment property.
Land is valued based on recent comparable transactions, resulting in land values ranging between $197 psm and $650 psm (31 March 2023: between $212 psm and
$650 psm).
Goodman Property Trust Interim Financial Statements
For the six months ended 30 September 2023
GOODMAN PROPERTY TRUST
INTERIM REPORT 2024
20
Notes to the financials statements (continued)
2. Borrowings
2 .1 Interest
$ million
6 months
30 Sep 23
6 months
30 Sep 22
Interest expense on borrowings(26.8)( 17. 3 )
Interest expense on lease liabilities( 1 .7 )( 1 .7 )
Amortisation of borrowing costs(3.0)(1.8)
Borrowing costs capitalised
(1)
9.87. 4
Total interest cost( 21 .7 )(13.4)
Interest income0.30.1
Net interest cost(21.4)(13.3)
(1)
Borrowing costs are capitalised at the weighted average cost of borrowing of 4.7% (30 September 2022: 3.6%). Borrowing costs of $2.6 million were capitalised to land (30 September 2022: $1.8 million).
Accounting Policies
Interest costs charged on borrowings are recognised as incurred. Costs associated with the establishment of borrowings are amortised over the term of the relevant
borrowings.
Goodman Property Trust Interim Financial Statements
For the six months ended 30 September 2023
GOODMAN PROPERTY TRUST
INTERIM REPORT 2024
21
Notes to the financials statements (continued)
2. Borrowings (continued)
2.2 Borrowings
$ million30 Sep 2331 Mar 23
Current
Retail bonds10 0.010 0.0
Total current borrowings100.0100.0
Non-current
Syndicated bank facilities122.0–
Bilateral bank facilities4 00.0321.0
Green retail bonds150.0150.0
Retail bonds–10 0.0
Wholesale bonds4 00.04 00.0
US Private Placement notes20 0.11 9 1 .7
Total non-current1,272.11,162.7
Unamortised borrowings establishment costs(3.1)(3.6)
Total non-current borrowings1,269.01,159.1
Total borrowings1,369.01,259.1
As at 30 September 2023, GMT has undrawn bank facilities of $538.0 million from which it expects to repay the $100.0 million retail bond expiring in May 2024.
Subsequent event
In November 2023, the bilateral bank facilities with Bank of New Zealand, Commonwealth Bank of Australia and Westpac New Zealand Limited were each extended
by one year.
Goodman Property Trust Interim Financial Statements
For the six months ended 30 September 2023
GOODMAN PROPERTY TRUST
INTERIM REPORT 2024
22
Notes to the financials statements (continued)
2. Borrowings (continued)
2.3 Composition of borrowings
Weighted
average
remaining
term (years)
$ million
30 Sep 23Date issuedExpiryInterest rate
Drawn
amount
Undrawn
facility
Syndicated bank facilities–Jun 24 – Jun 272.2Floating122.0538.0
Green bank facility – Bank of New Zealand–Dec 241.2Floating150.0–
Bank facility – Commonwealth Bank of Australia–Dec 241.2Floating10 0.0–
Green bank facility – Westpac New Zealand Limited–Dec 252.2Floating150.0–
Retail bonds – GMB040May 17May 240 .74.540%10 0.0–
Green retail bonds – GMB060Apr 22Apr 273.54.740%150.0–
Wholesale bonds – 6 yearsDec 21Dec 274.23.656%200.0–
Wholesale bonds – 8 yearsSep 20Sep 284.92.262%50.0–
Wholesale bonds – 10 yearsSep 20Sep 306.92.559%150.0–
US Private Placement notesJun 15Jun 251 .73.460%US$40.0–
US Private Placement notesJun 15Jun 273 .73.560%US$40.0–
US Private Placement notesJun 15Jun 306 .73.710%US$40.0–
Weighted
average
remaining
term (years)
$ million
31 Mar 2023Date issuedExpiryInterest rate
Drawn
amount
Undrawn
facility
Syndicated bank facilities–Jun 24 – Jun 272 .7Floating–660.0
Green bank facility – Bank of New Zealand–Dec 241 .7Floating150.0–
Bank facility – Commonwealth Bank of Australia–Dec 241 .7Floating10 0.0–
Green bank facility – Westpac New Zealand Limited–Dec 252 .7Floating71.079.0
Retail bonds – GMB040May 17May 241.24.540%10 0.0–
Retail bonds – GMB050Mar 18Sep 230.44.000%10 0.0–
Green retail bonds – GMB060Apr 22Apr 274.04.740%150.0–
Wholesale bonds – 6 yearsDec 21Dec 274 .73.656%200.0–
Wholesale bonds – 8 yearsSep 20Sep 285.42.262%50.0–
Wholesale bonds – 10 yearsSep 20Sep 307. 42.559%150.0–
US Private Placement notesJun 15Jun 252.23.460%US$40.0–
US Private Placement notesJun 15Jun 274.23.560%US$40.0–
US Private Placement notesJun 15Jun 307. 23.710%US$40.0–
Goodman Property Trust Interim Financial Statements
For the six months ended 30 September 2023
GOODMAN PROPERTY TRUST
INTERIM REPORT 2024
23
Notes to the financials statements (continued)
2. Borrowings (continued)
2.3 Composition of borrowings (continued)
As at 30 September 2023 and 31 March 2023, $660.0 million of syndicated bank facilities was provided to the Trust by Bank of New Zealand ($125.0 million), Commonwealth
Bank of Australia ($150.0 million), The Hongkong and Shanghai Banking Corporation Limited ($130.0 million), Westpac New Zealand Limited ($105.0 million), Australia and
New Zealand Bank ($75.0 million) and Industrial and Commercial Bank of China (New Zealand) Limited ($75.0 million). Additional bilateral facilities were provided to the Trust by
Bank of New Zealand ($150.0 million), Commonwealth Bank of Australia ($100.0 million) and Westpac New Zealand Limited ($150.0 million).
As at 30 September 2023, GMT’s drawn borrowings had a weighted average remaining term of 3.3 years (31 March 23: 3.6 years), with 61% being drawn from non-bank sources
(31 March 2023: 74%). Calculation of the weighted average remaining term assumes syndicated bank facilities utilise the longest dated facilities.
2.4 Security and covenants
All borrowing facilities are secured on an equal ranking basis over the assets of the wholly owned subsidiaries of Goodman Property Trust. A loan to value ratio covenant restricts
total borrowings incurred by the Group to 50% of the value of the secured property portfolio.
The Group has given a negative pledge to not create or permit any security interest over its assets. The principal financial ratios which must be met are the ratio of earnings
before interest, tax, depreciation and amortisation to interest expense, and the ratio of financial indebtedness to the value of the property portfolio. Further negative and positive
undertakings have been given as to the nature of the Group’s business.
2.5 Lease liabilities
$ million30 Sep 2331 Mar 23
Opening balance65.966.0
Decrease in liability as a result of ground rent reviews(2.3)–
Interest expense on lease liabilities1 .73.3
Ground rent paid(1.9)(3.6)
Amortisation of incentives received0.20.2
Total lease liabilities63.665.9
Goodman Property Trust Interim Financial Statements
For the six months ended 30 September 2023
GOODMAN PROPERTY TRUST
INTERIM REPORT 2024
24
Notes to the financials statements (continued)
2. Borrowings (continued)
2.6 Loan to value ratio calculation
The loan to value ratio (“LVR”) is a non-GAAP metric used to measure the strength of GMT’s Balance Sheet. This non-GAAP financial measure may not be consistent with its
calculation by other similar entities. The LVR calculation is set out in the table below.
$ million30 Sep 2331 Mar 23
Total borrowings1,369.01,259.1
US Private Placement notes – foreign exchange translation impact(39.4)(31.0)
Cash(5.3)(6.6)
Borrowings for LVR calculation1,324.31,221.5
Investment property4,685.44 ,7 91. 2
Lease liabilities(63.6)(65.9)
Assets for LVR calculation4,621.84,725.3
Loan to value ratio %28.7%25.9%
3. Earnings per unit and net tangible assets
3.1 Earnings per unit
Earnings per unit measures are calculated as (loss) / profit after tax or operating earnings after tax divided by the weighted number of issued units for the period. Operating
earnings is a non-GAAP financial measure included to provide an assessment of the performance of GMT’s principal operating activities. This non-GAAP financial measure
may not be consistent with its calculation by other similar entities.
The calculation of operating earnings before other income / (expenses) and tax is set out in Profit or Loss.
$ million
6 months
30 Sep 23
6 months
30 Sep 22
Operating earnings before other income / (expenses) and tax68.164.3
Income tax on operating earnings(6.8)( 9 .7 )
Operating earnings after tax61.354.6
Goodman Property Trust Interim Financial Statements
For the six months ended 30 September 2023
GOODMAN PROPERTY TRUST
INTERIM REPORT 2024
25
Notes to the financials statements (continued)
3. Earnings per unit and net tangible assets (continued)
3.1 Earnings per unit (continued)
Weighted units
Million30 Sep 2330 Sep 22
Weighted units1,4 03.31,4 03.3
cents per unit
6 months
30 Sep 23
6 months
30 Sep 22
Operating earnings per unit before tax4.854.58
Operating earnings per unit after tax4.373.89
Basic and diluted earnings per unit after tax(11.63)2.93
3.2 Net tangible assets
Diluted units, comprising issued units plus deferred units not yet issued, are used to calculate net tangible assets per unit. With no deferred units, issued units represent diluted units.
Diluted units
Million30 Sep 2331 Mar 23
Issued units1,4 03.31,4 03.3
30 Sep 2331 Mar 23
Net tangible assets ($ million)3,235.13 , 4 4 0 .7
Net tangible assets per unit (cents)230.5245.2
Goodman Property Trust Interim Financial Statements
For the six months ended 30 September 2023
GOODMAN PROPERTY TRUST
INTERIM REPORT 2024
26
Notes to the financials statements (continued)
4. Derivative financial instruments
Derivative financial instruments are used to manage exposure to interest rate risks and foreign exchange risks arising from GMT’s borrowings.
4.1 Movement in fair value of financial instruments
$ million
6 months
30 Sep 23
6 months
30 Sep 22
Interest rate derivatives10.8(0.5)
Cross currency interest rate derivatives relating to US Private Placement notes2.626.5
Total movement in fair value of derivative financial instruments13.426.0
Foreign exchange rate movement on US Private Placement notes(8.4)(41.5)
Total movement in fair value of financial instruments5.0(15.5)
Key judgement
The fair values of derivative financial instruments are determined from valuations using Level 2 valuation techniques. These are based on the present value of estimated
future cash flows, taking account of the terms and maturity of each contract and the current market interest rates at reporting date. Fair values also reflect the
creditworthiness of the derivative counterparty and GMT at balance date. The valuations were based on market rates at 30 September 2023 of between 5.74% for
the 90-day BKBM and 5.18% for the 10-year swap rate (31 March 2023: 5.23% for the 90-day BKBM and 4.30% 10-year swap rate). There were no changes to these
valuation techniques during the year.
4.2 Derivative financial instruments
$ million30 Sep 2331 Mar 23
Cross currency interest rate derivatives
Non-current assets21.418.8
Interest rate derivatives
Non-current assets33.924.1
Non-current liabilities(9.6)(10.1)
Current liabilities–(0.5)
Net derivative financial instruments4 5.732.3
Goodman Property Trust Interim Financial Statements
For the six months ended 30 September 2023
GOODMAN PROPERTY TRUST
INTERIM REPORT 2024
27
Notes to the financials statements (continued)
5. Ta x
5.1 Tax expense
$ million
6 months
30 Sep 23
6 months
30 Sep 22
(Loss) / profit before tax(153.4)48.8
Tax at 28%43.0(13.7)
Depreciation of investment property6.14.5
Movement in fair value of investment property(63.4)–
Deductible net expenditure for investment property5.13 .7
Derivative financial instruments1.5(4.2)
Prior period adjustments0.9–
Current tax on operating earnings(6.8)(9.7 )
Depreciation of investment property(6.1)(4.5)
Reduction of liability in respect of depreciation recovery income6.63.0
Deferred expenses(2.0)( 0 .7 )
Derivative financial instruments(1.5)4.2
Deferred tax(3.0)2.0
Total tax(9.8)( 7.7 )
Current tax on operating earnings is a non-GAAP measure included to provide an assessment of current tax for GMT’s principal operating activities. This non-GAAP financial
measure may not be consistent with its calculation by other similar entities.
Goodman Property Trust Interim Financial Statements
For the six months ended 30 September 2023
GOODMAN PROPERTY TRUST
INTERIM REPORT 2024
28
Notes to the financials statements (continued)
6. Related party disclosures
As a Unit Trust, GMT does not have any employees. Consequently, services that the Group requires are provided under arrangements governed by GMT’s Trust Deed or by
contractual arrangements. The Trust has related party relationships with the following parties.
EntityNature of relationship
Goodman (NZ) LimitedGNZManager of the Trust
Goodman Property Services (NZ) LimitedGPSNZProvider of property management, development management and related services to the Trust
Goodman Investment Holdings (NZ) LimitedGIHUnitholder in GMT
Goodman LimitedGLParent entity of GNZ, GPSNZ & GIH
Goodman Industrial TrustGITProperty co-owner with GMT and unitholder in GMT
6.1 Transactions with related parties
Recorded Capitalised Outstanding
$ millionRelated party
6 months
30 Sep 23
6 months
30 Sep 22
6 months
30 Sep 23
6 months
30 Sep 2230 Sep 23
30 Sep 22
Manager’s base feeGNZ( 9 .7 )(9.8)0.90.9(1.6)(1.6)
Property management fees
(1)
GPSNZ(2.2)(2.0)––(0.4)(0.3)
Leasing feesGPSNZ( 1 .7 )( 1 .7 )––(0.6)(0.1)
Acquisition and disposal feesGPSNZ–(0.9)–0.9––
Minor project feesGPSNZ(0.4)(0.5)0.40.5(0.1)–
Development management feesGPSNZ( 7. 5 )(0.3)7. 50.3(1.5)(0.1)
Total fees(21.5)(15.2)8.82.6(4.2)(2.1)
Reimbursement of expenses for services providedGPSNZ(1.0)( 0 .7 )0.20.1–(0.1)
Gross lease receipts receivedGPSNZ0.10.1––––
Issue of units for Manager’s performance fee reinvestedGIH–1 5 .7––––
Distributions paidGIH(8.4)(8.9)––––
Distributions paidGIT(2.3)(1.1)––––
(1)
Of the property management fees charged by GPSNZ, $1.8 million was paid by customers and was not a cost borne by GMT (30 September 2022: $1.6 million).
Goodman Property Trust Interim Financial Statements
For the six months ended 30 September 2023
GOODMAN PROPERTY TRUST
INTERIM REPORT 2024
29
Notes to the financials statements (continued)
6. Related party disclosures (continued)
6.2 Other related party transactions
Capital transactions
Capital transactions that occur with related parties can only be approved by the Independent Directors of GNZ, with non-Independent Directors excluded from the approval
process.
No properties were acquired pursuant to the Co-ownership Agreement between GMT and Goodman Industrial Trust (31 March 2023: none). This agreement was approved
by unitholders at a general meeting held on 23 March 2004.
Key management personnel
Key management personnel are those people with the responsibility and authority for planning, directing and controlling the activities of an entity. As the Trust does not have
any employees or Directors, key management personnel is considered to be the Manager. All compensation paid to the Manager is disclosed within this note.
Related party investment in GMT
At 30 September 2023, Goodman Group, GNZ’s ultimate parent, through its subsidiary Goodman Investment Holdings (NZ) Limited, held 278,063,312 units in GMT out
of a total 1,403,254,516 units on issue (31 March 2023: 278,063,312 units in GMT out of a total 1,403,254,516 units).
At 30 September 2023, Goodman Group, GNZ’s ultimate parent, through Goodman Industrial Trust, held 75,357,377 units in GMT out of a total 1,403,254,516 units on
issue (31 March 2023: 75,357,377 units in GMT out of a total 1,403,254,516 units).
6.3 Related party capital commitments
$ millionRelated party30 Sep 2331 Mar 23
Development management fees for developments in progressGPSNZ8.616.4
Total related party capital commitments8.616.4
7. Commitments and contingencies
7.1 Non-related party capital commitments
These commitments are amounts payable for contractually agreed services for capital expenditure. For related party capital commitments refer to note 6.3.
$ million30 Sep 2331 Mar 23
Completion of developments111.4202.2
Total non-related party capital commitments111.4202.2
Goodman Property Trust Interim Financial Statements
For the six months ended 30 September 2023
GOODMAN PROPERTY TRUST
INTERIM REPORT 2024
30
Notes to the financials statements (continued)
7. Commitments and contingencies (continued)
7. 2 Contingent liabilities
GMT has no material contingent liabilities (31 March 2023: none).
8. Financial risk management
In addition to business risk associated with the Group’s principal activity of investing in real estate in New Zealand, the Group is also exposed to financial risk for the financial
instruments that it holds. Financial risk can be classified in the following categories: interest rate risk, credit risk, liquidity risk and capital management risk.
8.1 Fair value of financial instruments
Except for the retail bonds, green retail bonds, wholesale bonds and US Private Placement notes; the carrying values of all balance sheet financial instruments approximate their
estimated fair value. The fair values of retail bonds, green retail bonds, wholesale bonds and US Private Placement notes are as follows:
$ millionFair value hierarchy30 Sep 2331 Mar 23
Retail bondsLevel 198.41 9 7. 1
Green retail bondsLevel 1139.914 3.4
Wholesale bondsLevel 2329.83 41 .7
US Private Placement notesLevel 2U S$106.2U S $10 9.4
9. Operating segments
The Trust’s activities are reported to the Board as a single operating segment; therefore, these financial statements are presented in a consistent manner to that reporting.
Goodman Property Trust Interim Financial Statements
For the six months ended 30 September 2023
GOODMAN PROPERTY TRUST
INTERIM REPORT 2024
31
Notes to the financials statements (continued)
PricewaterhouseCoopers, PwC Tower, 15 Customs Street West, Private Bag 92162, Auckland 1142 New Zealand
T: +64 9 355 8000, www.pwc.co.nz
Independent auditor’s review report
To the unitholders of Goodman Property Trust
Report on the interim financial statements
Our conclusion
We have reviewed the interim financial statements of Goodman Property Trust (the Trust) and its controlled entities (together, the Group), which comprise the balance sheet as at
30 September 2023, and the statement of profit or loss, the statement of changes in equity and the statement of cash flows for the six months ended 30 September 2023, and
significant accounting policies and other explanatory information.
Based on our review, nothing has come to our attention that causes us to believe that these accompanying interim financial statements of the Group do not present fairly, in all
material respects, the financial position of the Group as at 30 September 2023, and its financial performance and cash flows for the six month period then ended, in accordance
with International Accounting Standard 34 Interim Financial Reporting (IAS 34) and New Zealand Equivalent to International Accounting Standard 34 Interim Financial Reporting
(NZ IAS 34).
Basis for conclusion
We conducted our review in accordance with the New Zealand Standard on Review Engagements 2410 (Revised) Review of Financial Statements Performed by the Independent
Auditor of the Entity (NZ SRE 2410 (Revised)). Our responsibilities are further described in the Auditor’s responsibilities for the review of the interim financial statements section of
our report.
We are independent of the Group in accordance with the relevant ethical requirements in New Zealand relating to the audit of the annual financial statements, and we have fulfilled our
other ethical responsibilities in accordance with these ethical requirements. In addition to our role as auditor, our firm carries out other services for the Group in the areas of assurance
services relating to the performance fee calculation, agreed upon procedures relating to financial covenants of the bank facilities and reporting to the supervisor of GMT Bond Issuer
Limited. The provision of these other services has not impaired our independence.
Responsibilities of Directors of Goodman (NZ) Limited for the interim financial statements
The Directors of the Manager (Goodman (NZ) Limited) are responsible on behalf of the Trust for the preparation and fair presentation of these interim financial statements in
accordance with IAS 34 and NZ IAS 34 and for such internal control as the Directors of the Manager determine is necessary to enable the preparation and fair presentation of the
interim financial statements that are free from material misstatement, whether due to fraud or error.
GOODMAN PROPERTY TRUST
INTERIM REPORT 2024
32
Auditor’s responsibilities for the review of the interim financial statements
Our responsibility is to express a conclusion on the interim financial statements based on our review. NZ SRE 2410 (Revised) requires us to conclude whether anything has come to
our attention that causes us to believe that the interim financial statements, taken as a whole, are not prepared in all material respects, in accordance with IAS 34 and NZ IAS 34.
A review of interim financial statements in accordance with NZ SRE 2410 (Revised) is a limited assurance engagement. We perform procedures, primarily consisting of making
enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. The procedures performed in a review are
substantially less than those performed in an audit conducted in accordance with International Standards on Auditing (New Zealand) and International Standards on Auditing and
consequently does not enable us to obtain assurance that we might identify in an audit. Accordingly, we do not express an audit opinion on these interim financial statements.
Who we report to
This report is made solely to the Trust’s unitholders, as a body. Our review work has been undertaken so that we might state those matters which we are required to state to them in our
review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Trust’s unitholders, as a body, for our
review procedures, for this report, or for the conclusion we have formed.
The engagement partner on the review resulting in this independent auditor’s review report is Lisa Crooke.
For and on behalf of:
Chartered Accountants Auckland
22 November 2023
GOODMAN PROPERTY TRUST
INTERIM REPORT 2024
33
Independent auditor’s review report (continued)
To the unitholders of Goodman Property Trust
Report on the interim financial statements
Sharing a consistent design theme that provides modern,
efficient and flexible workspaces, the average age of
GMT’s core portfolio is just 1 1 years.
34
GOODMAN PROPERTY TRUST
INTERIM REPORT 2024
GMT BOND ISSUER LIMITED
INTERIM REPORT 2024
INTERIM
FINANCIAL
STATEMENTS
For the six months ended 30 September 2023
GMT Bond Issuer Limited
GMT BOND ISSUER LIMITED
INTERIM REPORT 2024
35
OTHER INFORMATIONOVERVIEWFINANCIAL RESULTS
The Board of GMT Bond Issuer Limited, authorised these financial statements
for issue on 22 November 2023. For and on behalf of the Board:
John Dakin Laurissa Cooney
Chair Chair, Audit Committee
CONTENTS
Profit or loss 36
Balance sheet 37
Cash flows 38
Changes in equity 39
General information 40
Notes to the financial statements
1. Borrowings 41
2. Advances to related parties 41
3. Commitments and
contingencies 41
4. Financial risk management 42
5. Equity 42
Independent auditor’s
review report 43
Profit or loss
For the six months ended 30 September 2023
$ million
6 months
30 Sep 23
6 months
30 Sep 22
Interest income13.6 14.9
Interest cost(13.6)(14.9)
Profit before tax––
Ta x––
Profit after tax attributable to shareholder––
There are no items of other comprehensive income, therefore profit after tax attributable to shareholder equals total comprehensive income attributable to shareholder.
GMT Bond Issuer Limited Interim Financial Statements
For the six months ended 30 September 2023
GMT BOND ISSUER LIMITED
INTERIM REPORT 2024
36
Balance sheet
As at 30 September 2023
$ millionNote30 Sep 2331 Mar 23
Non-current assets
Advances to related parties 2550.0650.0
Current assets
Advances to related parties210 0.010 0.0
Interest receivable from related parties7. 37. 5
Cash0.10.1
Total assets6 5 7. 47 5 7. 6
Non-current liabilities
Borrowings1550.0650.0
Current liabilities
Borrowings110 0.010 0.0
Interest payable7. 47. 6
Total liabilities6 5 7. 47 5 7. 6
Net assets––
Equity
Contributed equity5––
Retained earnings ––
Total equity––
GMT Bond Issuer Limited Interim Financial Statements
For the six months ended 30 September 2023
GMT BOND ISSUER LIMITED
INTERIM REPORT 2024
37
Cash flows
For the six months ended 30 September 2023
$ millionNote
6 months
30 Sep 23
6 months
30 Sep 22
Cash flows from operating activities
Interest income received13.813.0
Interest costs paid(13.8)(13.0)
Net cash flows from operating activities––
Cash flows from investing activities
Repayment of related party advances10 0.010 0.0
Related party advances made–(150.0)
Net cash flows from investing activities100.0(50.0)
Cash flows from financing activities
Proceeds received from issue of green bonds–150.0
Repayment of retail bonds(10 0.0)(10 0.0)
Net cash flows from financing activities(100.0)50.0
Net movement in cash––
Cash at the beginning of the period0.10.1
Cash at the end of the period0.10.1
GMT Bond Issuer Limited Interim Financial Statements
For the six months ended 30 September 2023
GMT BOND ISSUER LIMITED
INTERIM REPORT 2024
38
Changes in equity
For the six months ended 30 September 2023
$ million
Contributed
equity
Retained
earningsTo t a l
As at 1 April 2022–––
Profit after tax–––
As at 31 March 2023–––
Profit after tax–––
As at 30 September 2023–––
There are no items of other comprehensive income to include within changes in equity, therefore profit after tax equals total comprehensive income.
GMT Bond Issuer Limited Interim Financial Statements
For the six months ended 30 September 2023
GMT BOND ISSUER LIMITED
INTERIM REPORT 2024
39
General information
For the six months ended 30 September 2023
Reporting entity
GMT Bond Issuer Limited (“the Company”) was incorporated on 5 November 2009.
The address of its registered office is Level 2, 18 Viaduct Harbour Avenue, Auckland.
GMT Bond Issuer Limited is an issuer for the purposes of the Financial Reporting Act
2013 as its issued retail bonds are listed on the New Zealand Debt Exchange (“NZDX”).
GMT Bond Issuer Limited is a registered company under the Companies Act 1993.
GMT Bond Issuer Limited is a profit-oriented company incorporated and domiciled in
New Zealand. The Company was incorporated to undertake issues of debt securities
with the purpose of on lending the proceeds to Goodman Property Trust (“GMT”) by
way of interest bearing advances.
The interim financial statements for the six months ended 30 September 2023 are
unaudited. Comparative balances for 30 September 2022 are unaudited, whilst the
comparative balances as at 31 March 2023 are audited.
Basis of preparation and measurement
The interim financial statements have been prepared in accordance with New Zealand
Generally Accepted Accounting Practice (“NZ GAAP”) and comply with International
Accounting Standard 34 ‘Interim Financial Reporting’ and New Zealand Equivalent to
International Accounting Standard 34 ‘Interim Financial Reporting’.
The interim financial statements do not include all notes included in the annual financial
statements. Accordingly, these notes should be read in conjunction with the annual
financial statements for the year ended 31 March 2023, prepared in accordance with
New Zealand Equivalents to International Financial Reporting Standards (“NZ IFRS”) and
International Financial Reporting Standards (“IFRS”).
The accounting policies and methods of computation used in the preparation of these
interim financial statements are consistent with those used in the financial statements
for the year ended 31 March 2023.
The interim financial statements have been prepared on the historical cost basis.
The interim financial statements are in New Zealand dollars, the Company’s functional
currency.
GMT Bond Issuer Limited Interim Financial Statements
For the six months ended 30 September 2023
GMT BOND ISSUER LIMITED
INTERIM REPORT 2024
40
Notes to the financial statements
For the six months ended 30 September 2023
1. Borrowings
1.1. Security and covenants
All borrowing facilities are secured on an equal ranking basis over the assets of the wholly owned subsidiaries of the Company’s parent entity, Goodman Property Trust. A loan to
value covenant restricts total borrowings incurred by the Goodman Property Trust Group to 50% of the value of the secured property portfolio.
The Goodman Property Trust Group has given a negative pledge which provides that it will not create or permit any security interest over its assets. The principal financial ratio
which must be met is the ratio of financial indebtedness to the value of the property portfolio. Further negative and positive undertakings have been given as to the nature of the
Goodman Property Trust Group’s business.
2. Advances to related parties
All advances and interest receivable are with Goodman Property Trust.
Covenant Trustee Services Limited (as Trustee for Goodman Property Trust) has entered into a guarantee under which Goodman Property Trust unconditionally and irrevocably
guarantees all the obligations of GMT Bond Issuer Limited under its bond trust documents.
3. Commitments and contingencies
GMT Bond Issuer Limited has no capital commitments and no material contingent liabilities.
GMT Bond Issuer Limited Interim Financial Statements
For the six months ended 30 September 2023
GMT BOND ISSUER LIMITED
INTERIM REPORT 2024
41
4. Financial risk management
4.1. Fair value of financial instruments
The fair value of financial instruments has been estimated as follows:
$ millionFair value hierarchy30 Sep 202331 Mar 2023
Related party receivablesLevel 2568.1682.2
Wholesale bondsLevel 2(329.8)( 3 41 .7 )
Green retail bondsLevel 1(139.9)(143.4)
Retail bondsLevel 1(98.4)(197.1)
Total borrowings(568.1)(682.2)
5. Equity
As at 30 September 2023, 100 ordinary shares had been issued for nil consideration (31 March 2023: 100 ordinary shares for nil consideration). All shares rank equally with
one vote attached to each share.
The Company has tangible assets of $0.1 million, and its net assets are nil. Consequently, the net tangible assets per bond at 30 September 2023 are nil (31 March 2023: nil).
GMT Bond Issuer Limited Interim Financial Statements
For the six months ended 30 September 2023
GMT BOND ISSUER LIMITED
INTERIM REPORT 2024
42
Notes to the financials statements (continued)
PricewaterhouseCoopers, PwC Tower, 15 Customs Street West, Private Bag 92162, Auckland 1142 New Zealand
T: +64 9 355 8000, www.pwc.co.nz
GMT BOND ISSUER LIMITED
INTERIM REPORT 2024
43
Independent auditor’s review report
To the Shareholder of GMT Bond Issuer Limited
Report on the interim financial statements
Our conclusion
We have reviewed the interim financial statements of GMT Bond Issuer Limited (the Company), which comprise the balance sheet as at 30 September 2023, and the statement
of profit or loss, the statement of changes in equity and the statement of cash flows for the six months ended 30 September 2023, and significant accounting policies and other
explanatory information.
Based on our review, nothing has come to our attention that causes us to believe that these accompanying interim financial statements of the Company do not present fairly, in all
material respects, the financial position of the Group as at 30 September 2023, and its financial performance and cash flows for the six month period then ended, in accordance
with International Accounting Standard 34 Interim Financial Reporting (IAS 34) and New Zealand Equivalent to International Accounting Standard 34 Interim Financial Reporting
(NZ IAS 34).
Basis for conclusion
We conducted our review in accordance with the New Zealand Standard on Review Engagements 2410 (Revised) Review of Financial Statements Performed by the Independent
Auditor of the Entity (NZ SRE 2410 (Revised)). Our responsibilities are further described in the Auditor’s responsibilities for the review of the interim financial statements section of
our report.
We are independent of the Company in accordance with the relevant ethical requirements in New Zealand relating to the audit of the annual financial statements, and we have fulfilled
our other ethical responsibilities in accordance with these ethical requirements. In addition to our role as auditor, our firm carries out other services for the Company in the area of
reporting to the supervisor. The provision of these other services has not impaired our independence.
Responsibilities of the Directors for the interim financial statements
The Directors are responsible on behalf of the Company for the preparation and fair presentation of these interim financial statements in accordance with IAS 34 and NZ IAS 34
and for such internal control as the Board determine is necessary to enable the preparation and fair presentation of the interim financial statements that are free from material
misstatement, whether due to fraud or error.
GOODMAN PROPERTY TRUST
INTERIM REPORT 2024
44
Auditor’s responsibilities for the review of the interim financial statements
Our responsibility is to express a conclusion on the interim financial statements based on our review. NZ SRE 2410 (Revised) requires us to conclude whether anything has come to
our attention that causes us to believe that the interim financial statements, taken as a whole, are not prepared in all material respects, in accordance with IAS 34 and NZ IAS 34.
A review of interim financial statements in accordance with NZ SRE 2410 (Revised) is a limited assurance engagement. We perform procedures, primarily consisting of making
enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. The procedures performed in a review are
substantially less than those performed in an audit conducted in accordance with International Standards on Auditing (New Zealand) and International Standards on Auditing and
consequently does not enable us to obtain assurance that we might identify in an audit. Accordingly, we do not express an audit opinion on these interim financial statements.
Who we report to
This report is made solely to the Company’s Shareholder. Our review work has been undertaken so that we might state those matters which we are required to state to them in
our review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Shareholder, for our review
procedures, for this report, or for the conclusion we have formed.
The engagement partner on the review resulting in this independent auditor’s review report is Lisa Crooke.
For and on behalf of:
Chartered Accountants Auckland
22 November 2023
Independent auditor’s review report (continued)
To the Shareholder of GMT Bond Issuer Limited
Report on the interim financial statements
Making up almost 50% of the portfolio, the world-class
Highbrook Business Park is a major driver of the
Trust’s operating performance.
GOODMAN PROPERTY TRUST
INTERIM REPORT 2024
GMT BOND ISSUER LIMITED
INTERIM REPORT 2024
45
OTHER
INFORMATION
Introduction
Ensuring Unitholders and Bondholders are well informed and easily able
to manage their investment is a key priority of the Manager’s investor
relations team. Regular meetings and communications, its website and
a dedicated toll-free contact number provide investors with the means
to make informed decisions.
Annual Meeting
GMT’s Trust Deed requires at least one meeting of Unitholders
each financial year. The most recent Annual Meeting was held on
28 June 2023. The address and presentation are available on
GMT’s website.
Investor centre
The website, www.goodman.com/nz, enables Unitholders and
Bondholders to view information about their investment, check current
prices and view publications and announcements.
A dedicated toll-free number, 0800 000 656 (+64 9 375 6073
from outside NZ), will connect securityholders directly with the
investor relations team.
Registrar
Computershare Investor Services Limited is the registrar with
responsibility for administering and maintaining the Trust’s Unit and
Bond Registers.
If you have a question about the administration of your investment,
Computershare can be contacted directly:
+by email, to enquiry@computershare.co.nz
+by phone, on their toll-free number 0800 359 999
(+64 9 488 8777 from outside New Zealand)
+by mail, to Computershare Investor Services Limited,
Private Bag 92119, Auckland 1142.
Unitholder distributions
The Trust typically pays its distributions quarterly in the third month that
follows each quarter. For example, the distribution for the June 2023
quarter was paid in September 2023. The table below shows the
composition and timing of distributions per unit that have been paid,
or declared, since the beginning of this financial period.
Distribution for
quarter ended
Cash
distribution
Imputation
credits
To t a l
distribution
Payment
date
31-Mar-23$0.014750$0.002064$ 0.0168146-Jun-23
30-Jun-23$0.01550 0$ 0.0 01683$ 0 . 0 171 8 326-Sep-23
30-Sep-23$0.01550 0$0.0 02012$0.01751214-Dec-23*
* Distribution announced but not yet paid at the date of this report.
Bondholder interest payments
Interest is paid semi-annually, each year, until redemption. No dividends
or distributions have been paid by GMT Bond Issuer Limited.
Complaints procedure
As a financial service provider registered under the Financial Service
Providers (Registration and Dispute Resolution) Act 2008, the Manager
is a member of an approved dispute resolution scheme (registration
number FSP36542).
Complaints may be made to the Manager or through the financial dispute
resolution scheme. The contact details of both are included in the
business directory at the end of this report.
Investor relations
GOODMAN PROPERTY TRUST
INTERIM REPORT 2024
GMT BOND ISSUER LIMITED
INTERIM REPORT 2024
46
FINANCIAL RESULTSOTHER INFORMATION
Investor relations
OVERVIEW
Glossary
GOODMAN PROPERTY TRUST
INTERIM REPORT 2024
GMT BOND ISSUER LIMITED
INTERIM REPORT 2024
47
FINANCIAL RESULTSOTHER INFORMATION
Glossary
OVERVIEW
$ and cents
New Zealand currency.
Board
the Board of Directors of the Manager and
GMT Bond Issuer Limited.
Bondholder
a person whose name is recorded in the register as
a holder of a Goodman+Bond or Green Bond.
Underlying cash earnings
Cash earnings is a non-GAAP measure that
assesses free cash flow, on a per unit basis, after
adjusting for certain items. The calculation is set
out in GMT’s FY24 Interim Results Presentation,
released on 23 November 2023.
CEO
the Chief Executive Officer of the Manager.
Chair
the Chair of the Board of the Manager.
Co-ownership Agreement
the agreement of that name between the Manager,
Goodman Property Aggregated Limited, the
Trustee, Goodman Funds Management Limited
as responsible entity of GIT, Tallina Pty Limited as
trustee of Penrose Trust, and Trust Company Limited
as custodian of Tallina Pty Limited, dated 1 April
2004 as amended by the Restructuring Agreement
between the same parties dated 7 March 2005,
relating to the buying, selling and holding of property
by the Trust and Goodman Group in 50/50 shares.
CPU or cpu
cents per unit.
Director
a director of the Manager and GMT Bond Issuer
Limited.
GIT
Goodman Industrial Trust and its controlled entities,
as the context requires.
GL
Goodman Limited and its controlled entities, as the
context requires.
GMB
GMT Bond Issuer Limited, a wholly owned subsidiary
of Goodman Property Trust.
Goodman
means Goodman (NZ) Limited as the Manager of
the Trust.
Goodman Group or GMG
means GL, GIT and Goodman Logistics (HK) Limited,
operating together as a stapled group. Where either
GL, GIT or and Goodman Logistics (HK) Limited
is party to a contract or agreement or responsible
for an obligation or liability, without the other, all
references to Goodman Group as concerns that
contract, agreement or responsibility shall be to that
party alone.
Goodman+Bond, Green Bond, or Bond
a bond issued by GMB.
GPSNZ
Goodman Property Services (NZ) Limited.
Independent Director
has the meaning given to that term in the Listing
Rules which, for the Manager are those persons
listed on the following page.
Interim Balance Date
30 September 2023.
Listing Rules
the Listing Rules of NZX from time to time and ‘LR’
is a reference to any of those rules.
Loan to value ratio or LVR
Loan to value ratio is a non-GAAP financial measure
used to assess the strength of GMT’s balance sheet.
The calculation is set out in note 2.6 of GMT’s
financial statements.
Manager or GNZ
the manager of the Trust, Goodman (NZ) Limited.
N TA
net tangible assets.
NZ IFRS
New Zealand equivalents to International Financial
Reporting Standards.
NZDX
the New Zealand debt market operated by NZX.
NZX
means NZX Limited.
Operating earnings
Operating earnings are a non-GAAP financial
measure included to provide an assessment of the
performance of GMT’s principal operating activities.
Calculation of operating earnings is as set out in
GMT’s Profit or Loss statement.
Registrar
the unit registrar for GMT and Bond registrar for
GMB which, at the date of this Annual Report,
is Computershare Investor Services Limited.
sqm
square metres.
Trust Deed
the GMT trust deed dated 23 April 1999,
as amended from time to time.
Trust or GMT
Goodman Property Trust and its controlled entities,
including GMB, as the context requires.
Tr u s t e e
the trustee of the Trust, Covenant Trustee Services
Limited.
Unitholder or unitholder
any holder of a Unit whose name is recorded in
the register.
Unit or unit
a unit in GMT.
Business directory
GOODMAN PROPERTY TRUST
INTERIM REPORT 2024
GMT BOND ISSUER LIMITED
INTERIM REPORT 2024
48
FINANCIAL RESULTSOTHER INFORMATION
Business directory
OVERVIEW
MANAGER OF GOODMAN
PROPERTY TRUST
Goodman (NZ) Limited
Level 2, 18 Viaduct Harbour Avenue
Au c k l a n d 1010
PO Box 90940
Victoria Street West
Auckland 1142
Toll free: 0800 000 656
(within New Zealand)
Telephone: +64 9 375 6060
(outside New Zealand)
Email: info-nz@goodman.com
Website: www.goodman.com/nz
ISSUER OF BONDS
GMT Bond Issuer Limited
Level 2, 18 Viaduct Harbour Avenue
Au c k l a n d 1010
PO Box 90940
Victoria Street West
Auckland 1142
Toll free: 0800 000 656 (within New Zealand)
Telephone: +64 9 375 6060
(outside New Zealand)
Email: info-nz@goodman.com
Website: www.goodman.com/nz
COMPLAINT PROCEDURE
Financial Dispute
Resolution Service
Freepost 231075
PO Box 2272
Wellington 6140
Toll free: 0508 337 337
(within New Zealand)
Telephone: +64 4 910 9952
(outside New Zealand)
Email: enquiries@fdr.org.nz
AUDITOR
PricewaterhouseCoopers
PwC Tower
15 Customs Street West
Au c k l a n d 1010
Private Bag 92162
Auckland
Telephone: +64 9 355 8000
Facsimile: +64 9 355 8001
REGISTRAR
Computershare Investor
Services Limited
Level 2, 159 Hurstmere Road
Takapuna
Private Bag 92119
Victoria Street West
Auckland 1142
Toll free: 0800 359 999
(within New Zealand)
Telephone: +64 9 488 8777
(outside New Zealand)
Facsimile: +64 9 488 8787
Email: enquiry@computershare.co.nz
LEGAL ADVISORS
Russell McVeagh
Level 30, Vero Centre
48 Shortland Street
PO Box 8
Auckland 1140
Telephone: +64 9 367 8000
Facsimile: +64 9 367 8163
TRUSTEE AND SUPERVISOR
FOR GOODMAN PROPERTY TRUST
Covenant Trustee Services Limited
Level 6, Crombie Lockwood Building
191 Queen Street
PO Box 4243
Auckland 1140
Telephone: +64 9 302 0638
BOND TRUSTEE
Public Trust
Level 9
34 Shortland Street
PO Box 1598
Shortland Street
Auckland 1140
Toll free: 0800 371 471
(within New Zealand)
Telephone: +64 9 985 5300
(outside New Zealand)
BOARD
Directors of Goodman (NZ) Limited
and GMT Bond Issuer Limited
Chair and Non-executive Director
John Dakin
Independent Directors
Laurissa Cooney
Leonie Freeman
David Gibson
Keith Smith
Non-executive Directors
Gregory Goodman
Phillip Pryke (retired 30 Sept 23)
EXECUTIVES
Executives of Goodman (NZ) Limited
and GMT Bond Issuer Limited
Chief Executive Officer
James Spence
Chief Financial Officer
Andy Eakin
General Counsel and Company Secretary
Anton Shead
General Manager – Property Services
Evan Sanders
General Manager Development
Michael Gimblett
Director Investment Management
and Capital Transactions
Kimberley Richards
Head of Corporate Affairs
Jonathan Simpson
Marketing Director
Mandy Waldin
Human Resources Business Partner
Sophie Bowden
https://nz.goodman.com/
---
Level 2, 18 Viaduct Harbour Avenue, Auckland | PO Box 90940, Victoria Street West, Auckland 1142
Tel +64 9 375 6060 | www.goodman.com/nz
nzx release+
GMT Result Announcement
Results for announcement to the market
Name of issuer Goodman Property Trust (“GMT”)
Reporting Period 6 months to 30 September 2023
Previous Reporting Period 6 months to 30 September 2022
Currency New Zealand dollars
Amount (000s) Percentage change
Revenue from continuing operations $119,500 14.2%
Total Revenue $119,500 14.2%
Net profit/(loss) from continuing operations ($163,200) (497.1%)
Total net profit/(loss) ($163,200) (497.1%)
Dividend
Amount per Quoted Equity Security $0.01550000
Imputed amount per Quoted Equity Security $0.00201231
Record Date 30 November 2023
Dividend Payment Date 14 December 2023
Current period Prior comparable
period
Net tangible assets per Quoted Equity
Security
$2.305 $2.607
A brief explanation of any of the figures
above necessary to enable the figures to be
understood
GMT’s loss after tax of ($163.2) million at
30 September 2023 included a ($226.5)
million movement in the fair value of its
property assets. With no movement in the
fair value of its property assets in the
previous corresponding period GMT’s
profit after tax was $41.1 million.
Authority for this announcement
Name of person
authorised to make this
announcement
Andy Eakin
Contact person for this announcement Andy Eakin
Level 2, 18 Viaduct Harbour Avenue, Auckland | PO Box 90940, Victoria Street West, Auckland 1142
Tel +64 9 375 6060 | www.goodman.com/nz
Contact phone number (021) 305 316
Contact email address andy.eakin@goodman.com
Date of release through MAP
23 November 2023
Note
This announcement is extracted from the interim financial statements of Goodman Property
Trust. A copy of the interim financial statements together with the independent review report on
the interim financial statements is attached to this announcement.
---
EVERY
STEP
COUNTS
GOODMAN PROPERTY TRUST
INTERIM RESULT 2024
CONTENTS
OVERVIEW
03
INVESTMENT PORTFOLIO
06
FINANCIAL RESULT
16
SUMMARY & OUTLOOK
26
Unless otherwise indicated, all numerical data provided in this presentation
is stated as at 30 September 2023. All dollar values are NZD unless
otherwise stated. All figures are rounded. Non-GAAP financial measures
may not be consistent with their calculation by other similar entities.
CAPITAL MANAGEMENT
22
GOODMAN PROPERTY TRUST |INTERIM RESULT 2024
PRESENTED BY:
James Spence Chief Executive Officer
Andy Eakin Chief Financial Officer
2
OVERVIEW
GOODMAN PROPERTY TRUST |INTERIMRESULT 2024
3
Targeted investment strategy continues to produce earnings growth
GOODMAN PROPERTY TRUST |INTERIM RESULT 2024 | OVERVIEW
4
Structural drivers in the Auckland industrial market remain sound
+The Auckland industrial market continues to outperform, with near zero vacancy for prime industrial space.
+Short term supply outlook for the Auckland industrial market remains tight, with warehouse development under construction predominantly pre-committed.
The quality and location of our assets continue to drive growth in rents
+Elevated construction costs are contributing to the high barriers to entry that are restricting new supply. The dynamic is driving strong growth in market
rentals for GMT.
+GMT’s significant value-add portfolio continues to produce strong cashflows, while optionality for future development is being introduced into leases where
possible.
GMT is well positioned to continue delivering earnings growth
+Disciplined capital management continues to guide our investment strategy and underpins our ability to continue performing through more challenging
market conditions.
+With low gearing, diverse sources of funding and substantial liquidity, GMT is well positioned to continue executing on the best opportunities, while capturing
rental growth through new leasing deals.
First half operating performance reaffirms full year guidance
+Full-year underlying cash earnings reaffirmed at around 7.4 cents
1
, up 4% on FY23.
+Full-year distributions reaffirmed at 6.2 cents per unit, up 5% on FY23.
1
Excluding the accretive impact of the change to diminishing value for building depreciation
GOODMAN PROPERTY TRUST |INTERIM RESULT 2024 | OVERVIEW
YEAR TO DATE
+Portfolio occupancy of 99.6% and WALT of 6.4 years
+93,561 sqm of stabilised leasing during the period, producing an average rental uplift of 27.1%
+Underlying like-for-like net property income growth of 6.2% for the period
+Potential rent reversion to market of ~23% (~$49 million p.a)
+Three completed developments totalling 61,451 sqm
+$324.5 million development work in progress, 93% leased
+S&P reaffirmed GMT’s credit rating at BBB with a Stable Outlook. GMT’s secured debt was reaffirmed one notch higher at BBB+
+Gearing of 28.7%, with committed gearing of 30.5%
+$538 million in available liquidity
+73% of debt hedged against volatility in the interest rate environment
+Operating earnings before tax of $68.1 million, a 5.9% increase from the first half of FY23
+Portfolio valued at $4.7 billion, after $226.5 million or 4.6% reduction in value in the period, resulting in a loss after tax of $163.2 million
+Underlying cash earnings of 3.75 cents per unit are a 6.5% increase from the first half of FY23
+Distributions of 3.10 cents per unit are a 5.1% increase from the first half of FY23 and reflect a payout ratio of 82.7% of underlying cash
earnings
Portfolio
Capital Management
FY24 Interim Result
5
GOODMAN PROPERTY TRUST |INTERIM RESULT 2024
INVESTMENT PORTFOLIO
6
1
Total stabilised warehouse and office area
2
Includes leased developments
$4.7bn
PROPERTY PORTFOLIO
1.1m sqm
NET LETTABLE AREA
1
99.6%
OCCUPANCY
6.4 years
W A LT
2
Property portfolio
GOODMAN PROPERTY TRUST |INTERIMRESULT 2024 | INVESTMENT PORTFOLIO
GMT’s urban logistics
portfolio provides
essential supply chain
infrastructure, facilitating
the efficient storage and
distribution of goods and
materials.
7
1
Weighted average face warehouse rate of leases
completed in 1H24. 2H23 comparable rate $186 psm
93,561 sqm
LEASED IN FY24
$199 psm
CORE PORTFOLIO
AVERAGE WAREHOUSE RATE
1
7.3 ye a r s
AVERAGE NEW LEASE TERM
27.1 %
R E N TA LUPLIFT
2.0 months
AVERAGE LEASE UP PERIOD
2 .6%
AVERAGE INCENTIVE
Stabilised portfolio leasing
GOODMAN PROPERTY TRUST |INTERIMRESULT 2024 | INVESTMENT PORTFOLIO
8
9
151
142
138
+46
+48
+7
197
190
145
Contract rentUnder-rented
GOODMAN PROPERTY TRUST |INTERIMRESULT 2024 | INVESTMENT PORTFOLIO
Rent reversion
1
Difference between valuer assessed market rents and current passing rents,
divided by current passing rent
10-YEAR LEASE EXPIRY PROFILE
% of portfolioincome
MARKET RENT &UNDER-RENTING
Warehouse rent $psm
0%
5%
10%
15%
20%
25%
FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY33+
Value AddCoreVacant
+Valuer assessed potential rent
reversion to market is 22.8%
1
,
which equates to under-renting of
$48.6 million per annum
+1.8% of portfolio income to expire
in FY24
+Underlying like-for-like net
property income growth of 6.2%
for the period
Highbrook
Core excl. Highbrook
Value-add
10
Government
14.5%
NZ listed
21.9%
Overseas listed
28.3%
Private - security
31.5%
Private - no security
3.8%
GOODMAN PROPERTY TRUST |INTERIMRESULT 2024 | INVESTMENT PORTFOLIO
Income & stability
+Top 10 customers account for 39% of portfolio income
1
+65% of GMT’s revenue is from customers who are either:
−Government owned entities, or
−Listed entities – in New Zealand or overseas, with ready
access to capital markets as required, and full financial
visibility through company announcements
+35% of GMT’s revenue is from customers who are privately
owned
+GMT’s exposure to privately owned customers, with no form of
security under their lease, equates to less than 4% of annual net
property income
CUSTOMER OWNERSHIP & SECURITY
% of portfolio income
TOP 10 CUSTOMERS
1
total net lettable area (sqm) per customer, including subsidiary companies
1
Includes leased developments
2%
2%
2%
2%
2%
3%
3%
4%
7%
12%
0k20k40k60k80k100k120k140k
Supply Chain Solutions
Linfox
Toll
Coda
Officemax
Freightways
Fletcher Building
DHL
Mainfreight
New Zealand Post
StabilisedDevelopment
% of
income
11
GOODMAN PROPERTY TRUST |INTERIMRESULT 2024 | INVESTMENT PORTFOLIO
Customer base
+217 customers across 167 buildings, with 78% focused on warehousing or distribution
+In our recent survey of GMT customers, businesses were asked about their Auckland
warehouse requirements over the next 1-5 years
1
:
−more than 50% plan to increase their Auckland warehouse footprint
−less than 5% plan to reduce the size of their warehouse
1
Includes leased developments
CUSTOMER INDUSTRY EXPOSURE
1
% of portfolio income
GMT CUSTOMER SURVEY: FUTURE WAREHOUSE REQUIREMENTS
% of survey respondents
6%
23%
26%
42%
3%
Increase by more than 50%
Increase by 21% - 50%
Increase by 5% - 20%
Right size - no change
Reduce
Third party logistics & parcel 44%
Consumer goods warehousing 16%
Building products 11%
Manufacturing 11%
Other 9%
Other warehousing 3%
Commodities warehousing 3%
Retail 2%
GOODMAN PROPERTY TRUST |INTERIMRESULT 2024 | INVESTMENT PORTFOLIO
Development completions
12
$228.1m
TOTAL PROJECT COST
16.4 years
W A LT
61,451 sqm
NET LETTABLE AREA
5 Star
GREEN STAR BUILT TARGET
5.3%
YIELD ON COST
GOODMAN PROPERTY TRUST |INTERIMRESULT 2024 | INVESTMENT PORTFOLIO
13
$324.5m
TOTAL PROJECT COST
14.2 years
W A LT
68,013 sqm
NET LETTABLE AREA
93%
LEASED
8.2%
YIELD ON ADDITIONAL COST
Work in progress
GOODMAN PROPERTY TRUST |INTERIMRESULT 2024 | INVESTMENT PORTFOLIO
Realising value
from within
Future value to be realised
through redevelopment of the
value-add portfolio over time.
Focused on maintaining and
growing cashflows from
existing improvements,
introducing future
development optionality
where possible.
Penrose Industrial Estate
4.9years
WALT
100%
OCCUPANCY
8.8 ha
SITE AREA
14
Preparing the
pipeline
GOODMAN PROPERTY TRUST |INTERIMRESULT 2024 | INVESTMENT PORTFOLIO
15
+High construction and financing costs continue to be a
barrier to commencing new developments
+The focus for GMT’s value add portfolio remains on
maintaining and growing cashflows, introducing future
development optionality to new leases where possible
+In consultation with iwi, master-planning for
Waitomokia
1
is well progressed. Planning approval has
now been lodged with Council and the first
development is expected to commence in mid-2025
+GMT will continue to assess development
opportunities on a case by case basis, with capital
reserved for those which are forecast to produce
appropriate risk adjusted returns, suitable to the
current environment
1
The excess land associated with the Villa Maria winery, purchased in 2021
GOODMAN PROPERTY TRUST |INTERIM RESULT2024
FINANCIAL RESULT
16
1
Operating earnings is a non-GAAP financial measure included to provide an assessment of the performance of GMT’s principal operating activities.
The calculation is set out in note 3.1 of GMT’s Financial Statements.
2
Cash earnings is a non-GAAP financial measure that assesses underlying operating cashflows, on a per unit basis, after adjusting for borrowing costs
and Manager’s base fee capitalised to land, expenditure related to building maintenance and to reverse straight line rental adjustments.
3
LVR is a non-GAAP financial measure that assesses GMT’s level of gearing. Refer to note 2.6 of GMT’s Financial Statements for the calculation.
Financial highlights
GOODMAN PROPERTY TRUST |INTERIM RESULT 2024 | FINANCIAL RESULT
$100.1m
NET PROPERTY INCOME
3.75 cpu
UNDERLYING CASH EARNINGS
2
($163.2m)
LOSS AFTER TAX
230.5 cpu
NET TANGIBLE ASSET BACKING
3.10 cpu
DISTRIBUTIONS
$538m
AVAILABLE LIQUIDITY
28.7%
LOAN TO VALUE RATIO
3
$68.1m
OPERATING EARNINGS BEFORE TAX
1
13.5% increase in rental revenue
5.9% increase on prior period
6.5% growth in underlying earnings
5.1% increase in cash distributions
17
88.2
100.1
+6.5
+4.9
+1.2
-0.7
70
75
80
85
90
95
100
105
1H23RedevelopmentsDevelopmentsUnderlying portfolioStraight line rent
adjustments
1H24
Net property
income
+Net property income increased by
$11.9 million to $100.1 million, a 13.5%
increase on the first half of FY23
+Income from developments, in
addition to like-for-like rental
growth are the main drivers of the
increase
+Underlying like-for-like net property
income growth on the stabilised
portfolio of 6.2% for the period
1
1
Net rental income on underlying portfolio, adjusted to remove vacancy, incentives & leasing costs, straight line rent adjustments, operating expenses and fitout rent
GOODMAN PROPERTY TRUST |INTERIM RESULT 2024 | FINANCIAL RESULT
18
NET PROPERTY INCOME
$m
54.6
61.3
+11.9
-8.1
+1.5
+1.4
-
10
20
30
40
50
60
70
1H23Net property
income
Net interest costLike-for-like tax
expense
Tax - change to DV
for building
depreciation
1H24
Operating
earnings
+Strong operating performance and a lower effective
tax rate are reflected in 12.3% increase in operating
earnings after tax
+13.5% increase in net property income has more than
offset higher interest expense:
–Rising interest rates increased WACD to 4.7%
(1H23 3.6%)
–Investment into the development pipeline was the
main contributor to the increased average debt
balance of $1,303.4 million (1H23 $1,108.9 million)
+Additional deductions for GMT’s development activity
and new leasing on the stabilised portfolio have
reduced tax expense by $1.5 million on a like-for-like
basis
+A change to diminishing value for building
depreciation has provided a further $1.4 million tax
benefit, (of which $0.9 million relates to FY23)
contributing to a lower effective tax rate of 10.0%
(1H23 15.1%)
GOODMAN PROPERTY TRUST |INTERIM RESULT 2024 | FINANCIAL RESULT
19
OPERATING EARNINGS AFTER TAX
$m
Operating earnings is a non-GAAP financial measure included to provide an assessment of the performance of GMT’s principal operating activities.
The calculation is set out in the Profit or Loss Statement and in note 3.1 of GMT’s Financial Statements.
20
Cash earnings
+Underlying cash earnings of 3.75 cents per unit are a 6.5% like-for-like
increase on the first half of FY23
+Including the benefit of the change to diminishing value for building
depreciation, cash earnings of $54.1 million, or 3.86 cents per unit, are 9.5%
higher than the first half of FY23
+Distributions of 3.10 cents per unit were a 5.1% increase from the first half
of FY23 and represent 82.7% of underlying cash earnings
+$16.7 million of total capex spent on the stabilised portfolio, of which $2.2
million was maintenance related
GOODMAN PROPERTY TRUST |INTERIMRESULT 2024 | FINANCIAL RESULT
1H241H23% change
Operating earnings before tax68.164.3
5.9%
Income tax on operating earnings(6.8)(9.7)
(29.9%)
Operating earnings after tax61.354.6
12.3%
Straight line rent adjustments(2.2)(1.0)
120.0%
Capitalised borrowing costs – land(2 .6)(1.8)
4 4 .4%
Capitalised management fees – land(0.2)(0.2)
-
Maintenance capex(2.2)(2.2)
-
Cash earnings5 4 .149.4
9.5%
Ta x – change to DV for building depreciation(1.4 )-
-
Underlying cash earnings5 2 .749.4
6.7 %
Underlying cash earnings per unit3.75 cpu3.52 cpu
6.5%
Distributions per unit3.10 cpu2.95 cpu
5.1%
Distributions % underlying cash earnings82 .7%83.8%
(1.1%)
Cash earnings is a non-GAAP financial measure that assesses underlying operating cashflows, on a per unit basis, after adjusting for
borrowing costs and Manager’s base fee capitalised to land, expenditure related to building maintenance and to reverse straight line
rental adjustments.
CASH EARNINGS
$m
Full year guidance
+Strong first half operating performance has produced significant earnings
growth, consistent with guidance
+FY24 underlying cash earnings guidance, excluding the impact of the
change to diminishing value for building depreciation, is reaffirmed at
around 7.4 cents per unit, 4% higher than FY23
+Reaffirming FY24 distributions to unitholders of 6.2 cents per unit, which
are 5% higher than FY23, and represent around 84% of expected
underlying cash earnings
Portfolio
valuation
+$226.5 million, or 4.6%, reduction in
portfolio value for the six-month
period, to $4,685.4 million
+Valuer assessed market rents grew
3.5% over the six-month period,
partially offsetting the 40 basis point
increase in the portfolio cap rate to
5.6%
+Net tangible asset backing reduced
14.7 cents to 230.5 cents per unit
GOODMAN PROPERTY TRUST |INTERIM RESULT 2024 | FINANCIAL RESULT
ValuationCap rateInitial yield
WALT
years
Occupancy
Net lettable
area sqm
Highbrook Business Park2 ,169.85.5%4.6%5.6 99%488,619
Savill Link525.65.4%4.5%5.7 100%138,826
M20 Business Park
1
348.95.4%4.7%4.6 100%86,703
The Gate Industry Park
1,2
283.85.7%4.5%4.9 100%71,4 67
Westney Industry Park
2
202.86.4%12.5%6.1 100%114,969
Favona Road140.05.3%4.6%13.7 100%39,658
Roma Road100.04.9%4.8%19.6 100%17,70 6
Va l u e-add properties638.56.0%5.0%4.5 98%172 ,763
Total stabilised properties4,409.45.6%4.9%5.9 99%1,130,710
Work in progress189.5
Land86.5
Total investment portfolio4,685.4
1
During the period, some properties were reclassified from Core to Value-add to reflect their future development potential. See note 1.4 of GMT’s Financial Statements
2
Included within stabilised properties is a gross-up equivalent to lease liabilities of $63.9 million
VALUATION SUMMARY
$m
21
CAPITAL MANAGEMENT
22
GOODMAN PROPERTY TRUST |INTERIM RESULT 2024
23
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Y1Y2Y3Y4Y5
GOODMAN PROPERTY TRUST |INTERIMRESULT 2024 | CAPITAL MANAGEMENT
Interest
+73% hedged for the next 12 months;
providing protection within the high
interest rate environment
+Weighted average debt cost
increased to 4.7%
+ICR decreased to 3.1x, remains well
above covenant minimum of 2.0x
+S&P reaffirmed GMT’s credit rating at
BBB with a Stable Outlook
−GMT’s secured debt was
reaffirmed one notch higher at
BBB+
HEDGINGPROFILE
%
30-Sep-2331-Mar-23
12 month forward hedging level73%84%
Weighted average debt cost4.7%4.0%
ICR covenant (>2.0x)3.1x3.6x
BORROWING METRICS
24
100
130
305
225
100
150
150
56
52
52
150
200
50
150
FY24FY25FY26FY27FY28FY29FY30FY31
Retail bondsBank facilitiesGreen bank facilitiesUSPPGreen bondsWholesale bonds
GOODMAN PROPERTY TRUST |INTERIMRESULT 2024 | CAPITAL MANAGEMENT
Liquidity
+Liquidity and diversity of funding was
extended through capital
management initiatives in FY23
+$538 million of available liquidity as at
30 September 2023, with $120 million
spend to come for the completion of
committed developments
+Bilateral bank facilities with BNZ, CBA
and Westpac all extended by 12
months during November 2023
MATURITY PROFILE
3
$m
30-Sep-2331-Mar-23
Non-bank funding ( % of drawn debt)61%74%
Available liquidity$538 million$739 million
Weighted average debt term (drawn)
1
3.3 years3.6 years
LVR covenant (<50%)
2
29.2%2 7.0 %
FUNDING METRICS
1
Weighted average debt term is calculated on drawn debt assuming bank
debt is drawn from the longest dated facility available
2
LVR covenant calculation differs from reported LVR principally through
the exclusion of development spend prior to completion
3
As at 23 November 2023, after the extension of the bilateral bank facilities
Loan to value ratio is a non-GAAP metric used to measure the
strength of GMT’s Balance Sheet. The calculation may not be
consistent with other similar entities.
28.7%
30.5%
+1.2%
+1.6%
+1.8%
25.9%
0%
10%
20%
30%
40%
50%
31-Mar-23Developments
including revaluation
Stabilised revaluation30-Sep-23Committed
developments
30-Sep-23 Committed
LVR
Gearing
+Reported LVR of 28.7% with
fully committed LVR of 30.5%,
significantly below covenant
maximum of 50%
+Committed developments
complete over periods to FY25
+Preferred through cycle LVR
range remains at 20-30%,
comfortable with exceeding
30% as opportunities or market
conditions dictate
GOODMAN PROPERTY TRUST |INTERIM RESULT 2024 | CAPITAL MANAGEMENT
LOAN TO VALUE RATIO
Covenant maximum
Preferred through cycle range
25
SUMMARY & OUTLOOK
26
GOODMAN PROPERTY TRUST |INTERIM RESULT 2024
Moving forward
Resilience within a challenging economic environment
+The economic outlook is uncertain, with high interest rates and
geopolitical activity likely to constrain business activity.
+GMT continues to prove resilient with strong operating
performance and growth.
+The Auckland industrial market remains at near capacity, and with
high barriers to entry for new development, GMT is set to benefit
from supply constraints through demand for its assets.
Earnings growth through disciplined capital management
+With increasing rentals, sustained high levels of occupancy and
development completions, GMT continues to produce significant
growth in underlying cashflows.
+Disciplined capital management, low gearing and significant
liquidity will continue to underpin our investment strategy and
enables GMT to execute on the best opportunities as and when
they arise.
+FY24 guidance is supported by strong operating results which are
set to continue driving GMT forward, underpinning our ability to
produce robust long-term returns.
GOODMAN PROPERTY TRUST |INTERIMRESULT 2024 | SUMMARY & OUTLOOK
27
FY24 underlying cash earnings guidance
is reaffirmed at around 7.4 cents per unit,
4% higher than FY23
QUESTIONS
28
GOODMAN PROPERTY TRUST |INTERIM RESULT 2024
THANK YOU
GOODMAN PROPERTY TRUST |INTERIM RESULT 2024
29
The information and opinions in this presentation were prepared by Goodman (NZ) Limited on behalf of Goodman Property Trust or one of its subsidiaries (GMT). GMT makes no representation or warranty as to the accuracy or completeness of the information in this
presentation. Opinions including estimates and projections in this presentation constitute the current judgment of GMT as at the date of this presentation and are subject to change without notice.
Such opinions are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond GMT’s control, and which may cause actual results to differ materially from those expressed in this
presentation. GMT undertakes no obligation to update any information or opinions whether as a result of new information, future events or otherwise.
This presentation is provided for information purposes only. No contract or other legal obligations shall arise between GMT and any recipient of this presentation. Neither GMT, nor any of the Goodman (NZ) Limited Board members, officers, employees, advisers or
other representatives will be liable (in contract or tort, including negligence, or otherwise) for any direct or indirect damage, loss or cost (including legal costs) incurred or suffered by any recipient of this presentation or other person in connection with this presentation.
GOODMAN PROPERTY TRUST |INTERIM RESULT 2024
APPENDIX
30
Profit or loss
GOODMAN PROPERTY TRUST |INTERIMRESULT 2024 | APPENDIX
31
Balance sheet
GOODMAN PROPERTY TRUST |INTERIMRESULT 2024 | APPENDIX
32
Cash flows
GOODMAN PROPERTY TRUST |INTERIMRESULT 2024 | APPENDIX
33
Development programme
GOODMAN PROPERTY TRUST |INTERIMRESULT 2024 | APPENDIX
34
DevelopmentEstateLettable area (sqm)Completion dateLeased
NZ Post Rosedale
Rosedale Estate17,75 2Mar-24100%
Mainfreight Savill Link South
Savill Link23,300Oct-24100%
Cotton On
Roma Road Estate18,230May-24100%
60 & 61 Roma Road
Roma Road Estate8,731Jun-2455%
Total work in progress
68,01393%
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.