Goodman Group (Goodman or Group) today announced its half year results for the six month period ended 31 December 2009. Key financial and operational highlights for the period are outlined below:
Financial highlights
Operating profit after tax of $139 million (appox. 102.6 mln.), in line with forecast
- Operating earnings per security (EPS) of 2.8 cents 2
- Distribution per security (DPS) of 1.5 cents
- Full year earnings guidance of 5.7 cents per security3 and DPS of 3.4 cents is reaffirmed
- Statutory accounting loss of $500 million reflecting property and equity investment revaluations and other non-operating items, as foreshadowed at the 2009 Annual General Meeting
- Improved financial position with balance sheet gearing reduced to 25% and steady interest coverage ratio (ICR) of 3.2x strong covenant headroom
- Net tangible assets ratio (NTA) of $0.50 per security4
- Group's liquidity has increased to $1.4 billion, with all debt maturities now covered to 1H FY2013
Operational highlights
- Core investment portfolio remains stable, with occupancy at 94% at a weighted average lease expiry of 5.6 years
- $0.7 billion of new third party equity was raised from institutional investors across our funds management platform
- $1.0 billion of new developments have commenced at an average yield on cost of 9.3%, with $0.7 billion commenced in the first half and a further $0.3 billion commencing since 31 December 2009. These developments have commenced with secured and identified third party funding, matching prime development opportunities with the fund investor demand
- Group has access to $10 billion development pipeline across all major markets, offering organic growth for our funds management platform
Goodman Group Chief Executive Officer, Mr Greg Goodman said, "The result we have announced today is consistent with the guidance issued last August. The half year has been a transition period, punctuated by the significant recapitalisation of the Group and our managed funds, together with relationships forged with two key strategic investors, CIC and CPPIB. We have refocused on our core business during this transition period, while observing our markets closely across Asia Pacific and Europe for opportunities and signs of further recovery. Operationally, we have been building momentum over the first half of FY10 and this has continued into the second half.
"A number of our institutional fund investors are again looking for new prime quality and core opportunities, and with $0.7 billion of new third party equity raised during the first half, our funds management platform continues to gain support from our institutional investor base. In matching our fund investor requirements, with our $10 billion development pipeline, we have prudently reactivated our development operations with $0.7 billion of new development commencements during the first half and a further $0.3 billion since 31 December 2009. This integrated approach between our management and development businesses allows us to grow without compromising our strong balance sheet position."
Source: FD
