Goodman bounces back into the black, unveils new capital partnership

29th May 2025 By Paul Yandall | paul@propertyticker.co.nz | @propertyticker

Goodman Property Trust has reported a net profit after tax of $109.6m for the year to March 2025, bouncing back from a $564.9m loss in FY24.

The growth was driven by in an increase in property income, which rose to $277.9m from the prior year’s $244.1m, driven by additional revenue from new developments, with operating earnings totalling $154.3m, up from $135.6m.

The company also unveiled today a new agreement to establish an open-ended property fund, with Mercer and Goodman Group to hold its $2.1bn Highbrook Business Park in Auckland.

“We’ve achieved our leasing targets and delivered strong revenue and earnings growth, demonstrating the resilience of the portfolio in a more challenging economic environment,” Goodman chief executive James Spence said.

“We’ve also made positive progress toward wider business objectives.

“Governance changes, a new remuneration structure, extended carbon reduction targets, together with the post balance date announcements of a new capital partnership and the [$89m] sale of Bush Road Distribution Centre reflect our commitment to building a responsible and sustainable long-term business.”

Goodman’s urban logistics portfolio was valued at $4.7bn, with stable valuations supporting the company’s bottom-line turnaround. Occupancy was at 99% across its 1.2 million square metres of space, which was occupied by 215 customers.

Distributions increased 4.8% to 6.5 cents per unit, with guidance for FY26 pointing to a further 5% rise.

“Rent reviews and new leasing transactions have contributed to like-for-like rental growth of 7.3%,” Spence said.

“Although market rents are relatively stable, the potential rent reversion within the portfolio remains substantial at around 21%.”

Spence added that the company was making significant investments, including a $93.8m project in Auckland.

“To meet future demand and to take advantage of lower construction pricing, we are commencing stage one of the regeneration plan for our value-add estate in Mt Wellington.

“The new multi-unit warehouse development will provide 21,000 square metres of high-quality, sustainable space across four buildings.”

Goodman was also prepare for a potential data centre development at Penrose Industrial Estate, investing $20.2m in preliminary design work and utility infrastructure.

On the new property fund, Spence said: “The new Highbrook fund is the first step in the establishment a larger property funds management platform that is expected to help drive GMT’s future growth.”

“With greater financial flexibility supporting an active investment strategy, we are progressing with new warehouse and logistics projects and preparing for future data centre development.”