18 May 2017

Goodman Property Trust profit drops from record high

3:33 pm on 18 May 2017

Strong demand for industrial property has helped Goodman Property Trust make a strong full year profit, although it has fallen from last year's record result.

Goodman CEO John Dakin

Goodman CEO John Dakin Photo: SUPPLIED

Goodman's net profit fell 8 percent to $213.8 million in the year ended March, with near flat revenue of $165.6m.

The underlying profit was $220.5m, including $114.7m in valuation gains.

Goodman chief executive John Dakin said the company's industrial park properties were 100 percent occupied, with unmet demand.

"Online shopping is increasing the requirement for distribution warehousing in many global markets. It's an emerging trend that is also adding to the attractiveness of industrial property as an investment class," he said.

The company disposed of $278.8m of assets over the year, which helped reduce its debt to to value ratio to 30.6 percent from last year's 33.9 percent.

Mr Dakin said Goodman's strength was underpinned by eight new development projects, with a total project cost of $97m, bringing the five-year total to $535m.

Goodman was also offering a seven-year fixed bond offer of up to $75m, with discretion to accept another $25m in oversubscriptions at an interest rate to be determined by investor-demand.

The indicative issue margin range is 1.55 percent to 1.7 percent.