This article is from the Australian Property Journal archive
MACQUARIE Goodman Property Trust booked a net profit after tax of $NZ51.8 million for the year to March 31, 2007 – up 47.7% over last year's result of $NZ35.1 million.
The 2007 result does not include revaluations which added a further $NZ65.9 million to the value of the portfolio, bringing total net profit after tax to $NZ117.8 million.
As a result, the trust’s weighted earnings before tax, on a normalised basis, are 10.22 cents per unit, up from 9.93 cents per unit the previous year. Unitholders will receive a fourth quarter distribution of 2.55 cents per unit, taking the annual gross distribution to 10.90 cents per unit.
MGNZ’s chairman Jim McLay said under the management of MGNZ, the last 12 months has seen the trust grow its business and deliver an impressive operating performance, consistent with expectations.
During the year, the trust bought several assets to the tune of $NZ190 million and sold $NZ82.0 million worth of properties.
The trust also increase in total assets from $NZ927.4 million to $NZ1.2 billion and as a result the NTA rose from $NZ1.13 to $NZ1.26 cents per unit.
“With a total return of 40.9% the trust has delivered an outstanding investment performance,” McLay added.
Today, MGP is the largest industrial and business space provider in New Zealand with 26 assets and over 768,100 sqm of net lettable area.
The portfolio has 190 customers with a weighted average lease expiry of 5.7 years and an occupancy rate of 98%.
The trust will continue to further build its development pipeline and has announced the construction of a new 8,700 sqm office tower at Central Park Corporate Centre, Greenlane.
The project, which is scheduled to complete in November 2008, has a total cost of $NZ31.6 million and is expected to provide an initial yield on cost in excess of 8% once fully leased.
“Success in our development programme has been an important contributor to the results of the Trust and today’s announcement of a major office development is another step in the growth of the business,” MGNZ’s chief executive John Dakin said.
“Property fundamentals in the Greenlane office precinct are particularly strong with a vacancy level of just 4.1%, continued occupier demand and limited new supply.
“MGP’s existing office assets in this location have similar low vacancy levels and offer leasing evidence to support targeted rental rates of $NZ265 sqm. Interest has already been received from a number of parties including both new and existing customers,” he added.
The development land at Central Park is jointly owned by MGP and its co-ownership partner Macquarie Goodman Group. MGP will purchase this interest at the current market valuation and undertake the development on a sole ownership basis.
Looking ahead, Dakin said with an increased development capability, the trust is well positioned to take advantage of a changing property and investment environment over the coming years.
Australian Property Journal