Page 19 - GMT and GMT Bond Issuer Annual Report 2017 v2

RESULTS OVERVIEW
Overview 2017
2016 % change
247.9 (11.1) 233.1 (8.3) 117.0 4.0
98.1 8.1 145.8 (21.3) 9.41 1.1
7.88 5.1 6.11 15.9 6.65 0.0
2,296.8 1.3 753.2 (9.5) 120.4 8.3
32.8 (10.6) 33.9 (9.7) 0.47 (6.4)
Construction within the VXV Precinct, Viaduct, Auckland
Net profit before tax ($m)
Net profit after tax ($m)
Operating earnings before tax ($m)
Operating earnings after tax ($m)
Movement in fair value of investment property ($m) Operating earnings per unit before tax (cpu)
Operating earnings per unit after tax (cpu)
Cash earnings per unit (cpu)
Cash distribution per unit (cpu)
Assets for loan to value calculation ($m) (1)
Borrowings for loan to value calculation ($m) (1)
Net tangible assets (cpu)
Loan to value ratio (%)
Look through loan to value ratio (%)
Management expense ratio (%)
(1) Refer to note 3.5 of the Financial Statements for further information.
220.5 213.8 121.7 106.0 114.7
9.51 8.28 7.08 6.65
2,326.4 681.8 130.4 29.3 30.6 0.44
TAXATION
A total tax expense of $6.7 million this year results in an after tax pro t of $213.8 million, a reduction of 8.3% from the $233.1 million achieved in the previous nancial year.
The total tax expense is signi cantly below the $14.8 million recorded in 2016 and is largely the result of a deferred tax release following
a reduction in the provision relating to tax depreciation. The reduced provision is attributable to the sale of certain investment properties.
After tax operating earnings, which removes the impact of deferred tax, re ects an effective tax rate of 12.9%.
BALANCE SHEET
A sustainable business strategy, with asset sales funding new investment and development initiatives, is improving the quality of GMT’s property portfolio and strengthening its balance sheet.
Eight new development projects, with a total cost of $97.0 million, were announced during
the year and four assets were sold for a total
of $278.8 million. The Trust also conditionally acquired The Concourse industrial facility, in the Auckland suburb of Henderson, for $18.9 million. Settlement is expected to occur in the rst half
of FY18.
The active investment market that is facilitating a successful sales programme is also contributing to strengthening asset values. While the fair value movements from GMT’s portfolio
17 FINANCIAL SUMMARY
revaluation are excluded from operating earnings, they are the main drivers of the 8.3% increase in net tangible asset backing to 130.4 cents per unit (on a fully diluted basis).
With borrowings of $681.8 million and
total property assets of $2.3 billion, the Trust
had a loan to value ratio (LVR) of just 29.3% at
31 March 2017. When the Trust’s interests in the Wynyard Precinct joint venture are proportionately consolidated its look through gearing is 30.6%.
It is a conservative level of debt, well below the 50% maximum allowed under the Trust’s debt covenants. The strong balance sheet position provides substantial capacity for future investment and development opportunities. We also believe it is appropriate to be at the lower end of the target gearing range at this point in the cycle.
GMT BOND ISSUER LIMITED
GMT Bond Issuer Limited has made three issues of Goodman+Bonds, with the GMB020 and GMB030 bonds still to mature.
During the year, GMT Bond Issuer Limited received $11.2 million of interest income and incurred $11.2 million of interest expense. The 11.8% decrease on the previous year re ects the maturity of the $150 million GMB010 bonds in the previous year and the full year impact of the $100 million GMB030 bond issue.
Standard & Poor’s have maintained the credit rating of all Goodman+Bonds at BBB+.
GOODMAN PROPERTY TRUST ANNUAL REPORT 2017 GMT BOND ISSUER LIMITED ANNUAL REPORT 2017