Page 35 - GMT and GMT Bond Issuer Annual Report 2017 v2

NOTES TO THE FINANCIAL
1. INVESTMENTPROPERTY(CONTINUED)
1.6 Stabilised properties (continued)
Valuation 2016 2015
$ million
STATEMENTS
Valuer
continued
For the year ended 31 March 2017
Acquisitions
/ Transfers Net
in expenditure
55.2 0.7 - 2.9
3.9 (0.8) - 0.1 - 1.8 - 0.5
30.7 - 1.3 0.1 - 2.3
22.3 13.3 - 5.2
113.4 26.1
Disposals
/ Transfers Fair value
out movement
- 62.2 - 22.9
- 23.3 - 12.4 - 15.0 - 9.5 - 0.4
(2.4) 6.0 (49.3) 5.7
(33.5) (24.0)
(32.4) --
(117.6) 133.4 1,998.2
Valuation 2016
789.3 174.9
171.4 153.0 118.4
53.4 31.1 27.8 33.4
Lettable area sqm
CBRE, Savills
CBRE 93,626
JLL 98,156 Colliers 80,499 JLL 103,735 JLL 30,736 Colliers 19,448 Colliers 21,943 Colliers 21,900
CBRE, Colliers 105,455 -
909,935
Market WALT cap rate Occupancy years
Business park
Highbrook Business Park, East Tamaki M20 Business Park, Wiri
Industrial estate
Savill Link, Otahuhu
The Gate Industry Park, Penrose Westney Industry Park, Mangere Penrose Industrial Estate, Penrose
The Tamaki Estate, Panmure
Connect Industrial Estate, Penrose Glassworks & South Park, Christchurch
Office park
Greenlane Office, Auckland & Show Place, Christchurch
Connect Office, Penrose
Total stabilised properties
671.2 149.1
145.0 140.5 101.6
43.4 - 22.8 74.7
467.4 27.2
1,842.9
334,437
5.5% - 5.8% -
6.1% - 7.8% -
7.3% -
6.8% -
7.3% 99% 6.1 7.8% 100% 5.5
6.9% 100% 5.4 6.9% 85% 3.8 8.8% 100% 4.5 7.1% 100% 4.1 5.8% 100% 2.2 7.6% 100% 3.8 8.2% 100% 7.2
9.0% 90% 4.0
445.5
ACCOUNTING POLICIES
Stabilised properties are those which are held to earn rental income. They are recorded initially at cost, including related transaction costs. After initial recognition, stabilised properties are carried at fair value. A panel of expert independent valuers value the portfolio at least once each year, generally at 31 March. Fair values are based on estimated market values. If this information is not available, alternative valuation methods such as recent prices in less active markets, the capitalisation method, or discounted cash ow projections are used.
Stabilised property that is being redeveloped is carried at fair value and holding costs are capitalised to the property during redevelopment. Expenditure is capitalised to a property when it is probable that it will provide future economic bene ts to the Group. All other repairs and maintenance costs are charged to Pro t or Loss.
Any gain or loss arising from a change in fair value is recognised in Pro t or Loss.
When sold, the net gain or loss on disposal of stabilised property is included in Pro t or Loss in the period in which the sale occurred. The gain or loss on disposal is calculated as the difference between the carrying amount of the stabilised property on the Balance Sheet and the proceeds from sale net of any costs associated with the sale.
GOODMAN PROPERTY TRUST ANNUAL REPORT 2017 FINANCIAL STATEMENTS
33 NOTES TO THE FINANCIAL STATEMENTS