Goodman Property Trust (NS) Analysis

Overview

Goodman Property Trust (GMT) is a managed investment scheme and New Zealand’s leading warehouse and logistics space provider.

With a $4.7 billion property portfolio (30 September 2023) it is a high-quality business built around a wide customer base and a proven development capability. An investment strategy focused on the Auckland urban logistics market provides the Trust’s 215+ customers with operationally efficient facilities close to consumers and key transport networks.

Around 90% of the core investment portfolio has been developed since 2004. GMT’s commitment to a sustainable, low-carbon future is reflected in the carbonzero certification for its business operations from Toitū. The Trust’s development programme is also committed to carbon neutral projects and is targeting a 5 Green Star Built rating for all new developments.

GMT was listed on the NZX Main Board in 1999 and has a market capitalisation of $3.2 billion (28 March 2024). It is one of the NZX's largest listed issuers and is included in the NZX20 index. It also has an investment grade credit rating of "BBB" from Standard & Poor's Global Ratings.

The management of GMT was internalised on 28 March 2024. The ASX listed Goodman Group, holds a 31.8% cornerstone Unitholding in GMT.

GMT Bond Issuer Limited (GMB), a wholly owned subsidiary of Goodman Property Trust, has made six public debt issues since 2009. The GMB040 Goodman+Bonds and GMB060 Green Bonds are yet to mature and are listed on the NZDX.

Performance

The following information was extracted from Goodman Property Trust's half year results released on 29 May 2025:

Annual result highlights include:

• A 13.5% increase in net property income to $230.5 million, driven by the additional revenue from new development completions, positive leasing results and like-for-like rental growth of 7.3%
• Operating earnings after tax of $125.0 million, compared to $121.4 million in FY24
• A 5.2% increase in cash earnings to 7.55 cents per unit and a 4.8% increase in cash distributions, to 6.5 cents per unit.
• Guidance for FY26 is for further growth in cash earnings, to around 8.0 cents per unit, and a 5% increase in distributions to 6.825 cents per unit
• Stable property values have supported an improved statutory result with a profit after tax of $109.6 million, compared to a loss of $564.9 million in FY24
• A strong balance sheet, with net tangible assets of 202.2 cents per unit and a loan to value ratio of 31.8%
• Strong leasing results with over 120,000 sqm of space secured on updated terms, portfolio occupancy of 99.0% and a weighted average lease term of 5.6 years
• The completion of three highly sustainable Green Star rated development projects, with a value of $214.8 million, adding 50,286 sqm of warehouse and logistics space to the portfolio
• A CDP Climate Score of B, a 4.1% reduction in absolute emissions from FY24 and new emission reduction targets set for 2030.