Goodman Property Trust says strong demand for good quality industrial sites and generally favourable market conditions contributed to a $185 million revaluation gain on its portfolio.
The real estate investor's manager, Goodman (NZ), said its upcoming result for the March 2019 year will include a 7.6 per cent lift in the valuation of its portfolio, which is expected to be a record $2.65 billion as at March 31.
That's expected to add 14 cents per unit to Goodman's net tangible asset, which was $1.389 as at March 31, 2018, while asset sales during the year likely added another 3.5 cents. The units last traded at $1.67, up 24 per cent from a year earlier.
"Investor demand for high-quality industrial property and positive market fundamentals are reflected in this record valuation result," chief executive John Dakin said in a statement.
"The trust's development programme contributed significantly to the gain, complementing the strong uplift in value from the investment portfolio."
Goodman announced a flurry of sales in December last year, selling an industrial property in Mangere for $29m and agreeing to sell its Concourse property in Henderson for $35m.
Prior to those sales being announced, the property trust's portfolio was valued at $2.3b as at September 30 with a 98.4 per cent occupancy rate and a weighted average lease term of 5.5 years. At that time, it had $209.6m of projects under development, with a further $75-100m of new projects expected to begin in this financial year.
Dakin today said Goodman's loan-to-value ratio is expected to be around 20 per cent.
The revaluation is subject to an independent audit, with the trust's annual earnings to be announced on May 15.