Page 40 - GMT and GMT Bond Issuer Annual Report 2017 v2

NOTES TO THE
2. INVESTMENTINJOINTVENTURE
FINANCIAL
GMT owns 51% of Wynyard Precinct Holdings Limited (“WPHL” or the “joint venture”), with the remaining 49% owned by GIC, Singapore’s sovereign wealth fund. The shareholders’ agreement of WPHL ensures that joint control is maintained via equal board representation, with GMT unable to unilaterally direct the joint venture. Properties owned by WPHL are managed by Goodman Property Services (NZ) Limited (“GPSNZ”) on a similar basis to how GPSNZ manages GMT’s wholly owned properties.
STATEMENTS
2.1 WPHL Pro t or Loss
$ million
Net property income Net interest costs Administrative expenses
Operating earnings before other income / (expenses) and tax
Other income / (expenses) and tax
Movement in fair value of investment properties Movement in fair value of derivative financial instruments Non-operating administrative expenses
Income tax on operating earnings
Deferred tax
Other income / (expenses) and tax
Profit after tax
WPHL
GMT share at 51% 2017 2016
8.4 6.3
(1.4) (2.2)
7.0 4.1
continued
For the year ended 31 March 2017
2017
25.4 (8.8) (0.2)
16.4
- 1.1 (1.1)
(1.1) (1.7)
(2.8)
13.6
2016
18.2 (5.6) (0.3)
12.3
0.4 (2.0) (0.8) (2.3) 0.4
(4.3)
8.0
ACCOUNTING POLICIES
The joint venture is accounted for using the equity method. Accounting policies of the joint venture are aligned with policies of GMT.
GOODMAN PROPERTY TRUST ANNUAL REPORT 2017 FINANCIAL STATEMENTS
38 NOTES TO THE FINANCIAL STATEMENTS