Goodman Property Trust lifted annual earnings 4.2 per cent as the country's second-biggest listed property investor benefited from cheaper interest costs.

Pre-tax operating earnings rose to $117 million in the 12 months ended March 31 from $112.3 million a year earlier, said the trust's manager, Goodman (NZ). Finance costs fell 15 per cent to $20.5 million in the year, while net rental income slipped 0.7 per cent to $133.8 million.

The property investor has sold more than $300 million of assets and signalled more than $350 million of development projects over the past three years, which it says will deliver the biggest return to unitholders.

"Following the completion of the current work book, the trust's land weighting will reduce to just 8.3 per cent of total property assets while investment in the favoured Auckland industrial and business park sectors will increase to 67.8 per cent," said chief executive John Dakin.

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Goodman's net profit jumped 45 per cent to $247.9 million, including a $145.8 million gain in the value of its investment property portfolio. The trust paid 6.65c per unit in the year, up from 6.45c a year earlier, and the board expects to at least match that return in 2017.