GMT Completes Interim Valuation Review

9 October 2008
For immediate release
 
GMT Completes Interim Valuation Review
 
The Trust’s Manager, Goodman (NZ) Limited (“GNZ”), announced the result of its interim valuation review today. The total value of Goodman Property Trust’s (“GMT” or “Trust”) industrial and business property portfolio is $1.58 billion as at 30 September 2008.
 
The comprehensive review of the entire portfolio was conducted by GMT’s external valuers, DTZ New Zealand, CB Richard Ellis, Jones Lang LaSalle and Colliers International to determine the appropriate carrying value of the assets.

John Dakin, Chief Executive Officer of GNZ, said “There is volatility across all asset classes at present and property markets internationally are being affected. GMT’s high quality portfolio has mitigated the full impact of this softening, recording a fall in value of $55.6 million or 3.4% of portfolio value.”  

“The valuations recognise the high calibre of the Trust’s properties and the commercial strength of its customers. GMT’s occupancy rate across the portfolio is 98%, and the weighted average lease term is 5.8 years. There has also been strong growth in GMT’s market rental levels with average growth of 4% since March.”

“Property fundamentals remain strong and quality assets continue to perform well. However, competition for assets from local and offshore investors has reduced and as a result investment yields have weakened.”

The weighted average capitalisation rate of GMT’s stabilised portfolio is now 8.3%, up from 8.0% in March 2008.

Greg Goodman, Chief Executive of Goodman Group and director of GNZ, said: “The market is now going through a phase where highly geared investors and developers are being forced from the market due to capital constraints. Our experience globally has shown that a property business with a high quality portfolio and a strong balance sheet will provide the best insulation from market fluctuations and will deliver the best performance over the long term.”

The result of the valuation review remains subject to the finalisation of GMT’s interim accounts but is expected to reduce net tangible assets by 6.6 cents per unit. 

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