Gmt

[Sideshow Bob]

https://www.nzx.com/announcements/411604

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 year ended 31 March 2023.

Customer demand for well-located warehouse and logistics space has ensured earnings targets were achieved, while new investment and capital management initiatives have made GMT a more sustainable and resilient business.

Highlights include:

+ Sustained customer demand contributing to a 6.9% increase in operating earnings to $126.5 million before tax
+ A $237.7 million reduction in the fair value of its property assets has contributed to a statutory loss of $135.4 million after tax compared to a profit of $748.6 million in FY22 (including fair value gains of $660.4 million from property valuations)
+ Net tangible assets of 245.2 cents per unit
+ Substantial balance sheet capacity, with a loan to value ratio of 25.9% and $739 million of available liquidity at 31 March 2023
+ A 6.6% increase in cash earnings to 7.1 cents per unit and a 7.3% increase in cash distributions, to 5.9 cents per unit
+ Guidance for FY24 includes a further 4% increase in cash earnings to around 7.4 cents per unit with a 5% increase in cash distributions to approximately 6.2 cents per unit
+ A $4.8 billion property portfolio providing over one million square metres of warehouse and logistics space, with occupancy of 99.5% and a weighted average lease term of more than six years
+ Positive progress in the sustainability programme with an improved climate score of A- from CDP and New Zealand’s first industrial 6 Green Star Design rating, awarded to two development projects at Highbrook Business Park
+ Further development activity with $209.7 million of new project commencements at Roma Road Estate in Mt Roskill and Savill Link in Ōtāhuhu, with $461.1 million of work in progress (total project cost)
+ New capital management initiatives including $450 million of green bonds and loans to support sustainable development.

[kiwikeith]

Seems a well run company but the dividend yield makes it difficult to get enthusiastic over the shares.

[nztx]

Over a quarter of a Billion dollar reduction in Unrealised Revaluation Slush Fund ?

How could that have happened ?

[Sideshow Bob]

https://www.nzx.com/announcements/426788

The Board of Goodman (NZ) Limited (“GNZ”) has entered into an agreement to internalise the management of Goodman Property Trust (“GMT”) to support its future growth strategy ("Internalisation Proposal").

[winner69]

https://www.nzx.com/announcements/426788

The Board of Goodman (NZ) Limited (“GNZ”) has entered into an agreement to internalise the management of Goodman Property Trust (“GMT”) to support its future growth strategy ("Internalisation Proposal").

Always suspicious of Internalisation Management proposals

[Sideshow Bob]

Always suspicious of Internalisation Management proposals

Seems like a whole lot of money.....

9.1x earnings!!

y terms of the Internalisation Proposal include:+ Goodman Group will be paid $272.4 million to relinquish its management rights, for the shares in GPSNZ and for the associated co-operation arrangements and services. Net of tax, the $199.3 million consideration represents a 9.1x multiple of the $22.0 million normalised FY24 savings GMT expects to realise, which is consistent with precedent transactions.

+ An additional $17.6 million will also be paid to Goodman Group to settle GMT’s performance fee obligations, to acquire its interest in co-owned (with GMT) investment properties and for the net tangible assets of GPSNZ.

+ Goodman Group will use the total consideration of $290 million to subscribe for new units in GMT at $2.14 per unit (being the 5-day VWAP to 20-Feb-24), increasing its cornerstone investment in GMT to 31.8%.

[kiwikeith]

Seems like a whole lot of money.....

9.1x earnings!!

Saves $22m per year in expenses. That is what always put me off GMT. The management fee seemed excessive. You have to wonder exactly what goodman did for the $22m annual fee.

[Jenny Ruth]

Hi all. The latest column published on my Substack, Just the Business, this morning looks at the proposal to internalise Goodman Property Trust's management contract. The headline is: Goodman proposal is a $500m “vote of confidence in NZ”
And you can find it here:
https://justthebusinessjennyruth.sub...a-500m-vote-of