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 20 November 2025:

GMT has delivered another strong financial performance, demonstrating the resilience of its warehouse and logistics portfolio in a challenging economic environment. It has also progressed strategic growth initiatives, establishing a complementary property funds management business with the successful launch and settlement of the new Highbrook Fund.

Key results include:

+ Total portfolio value of $4.7 billion, including partnership AUM of $609 million

+ A 7.5% increase in net property income to $119.7 million, driven by earlier development completions and like-for-like rental growth of 5.2%

+ Management fee income from the Highbrook Fund, diversifying revenue streams and contributing to a 10.4% increase in operating earnings before tax, to $83.1 million

+ An effective tax rate of 20.8% (1H25 17.5%) with operating earnings after tax of $65.8 million, compared to $62.1 million in 1H25

+ A 6.7% increase in cash earnings to 3.99 cents per unit, with guidance for the full year reaffirmed at around 8.0 cents per unit

+ A 5% increase in distributions to 3.4125 cents per unit, consistent with full year guidance of 6.825 cents per unit (also reaffirmed)

+ Increased revenue and a lower total tax expense have contributed to a 35.8% increase in statutory profit, to $61.8 million after tax

+ Greater financial flexibility with the sale of the Bush Road Centre in Rosedale and settlement of the Highbrook Fund recycling almost $700 million of capital for reinvestment

+ Stable property values and a strong balance sheet, with net tangible assets of 203.0 cents per unit and a look through loan to value ratio of 19.6%

+ Solid leasing results with over 65,000 sqm of existing space secured on new or revised terms, portfolio occupancy of 97.7% and a weighted average lease term of five years.

RESULT SUMMARY

GMT’s substantial 1.2 million sqm warehouse and logistics portfolio provides essential supply chain infrastructure for more than 200 customers.

Chief Executive Officer James Spence said, “By remaining focused on the delivery of our core property services and adapting to more demanding operating conditions we have continued to grow both earnings and distributions. The establishment of the new Highbrook Fund during the period is a major strategic initiative that creates a platform for sustained business growth.”

Cash earnings have increased 6.7% to 3.99 cents per unit, with management fee revenue, increases in contracted rents and the impact of earlier development completions all contributing to the strong growth.

Greater revenue and a lower total tax expense have also contributed to an improved interim statutory result, with GMT recording a 35.8% increase in profit after tax, to $61.8 million.

James Spence said, “The resilience of the portfolio and strength of our interim financial performance continues to support our full year cash earnings guidance of around 8.0 cents per unit. We have also reaffirmed distributions for the year of 6.825 cents per unit, a 5% increase and the fifth year of consecutive increases.”