Page 47 - GMT and GMT Bond Issuer Annual Report 2017 v2

NOTES TO THE
4. UNITS,EARNINGSPERUNITANDDISTRIBUTIONS
FINANCIAL
Issued units represent capital contributed to GMT by unit holders. Weighted units for the Manager’s base fee reinvested are included as the services are rendered. Other weighted units are calculated based on the days that the units have been on issue during the current year. Distributions are paid to GMT unit holders when approved by the Board of the Manager.
STATEMENTS
4.1 Issued units
continued
For the year ended 31 March 2017
Balance at the beginning of the year
Manager’s base fee reinvested
Units issued for part consideration of the acquisition of 50% of Highbrook Development Limited (1)
Balance at the end of the year
(million)
2017 2016
1,273.1 1,228.8 7.2 4.1
- 11.1
1,280.3 1,244.0
($ million)
2017 2016
1,389.5 1,381.3 9.2 8.2
- -
1,398.7 1,389.5
Issued units (million)
2017 2016
1,273.1 1,228.8 7.1 7.0
- 37.3
1,280.2 1,273.1
Weighted units Value
(1) In the prior year GMT issued 37.3 million units for final consideration of the December 2012 acquisition of 50% of Highbrook Development Limited from Highbrook Trust, a sub-trust of the Goodman Industrial Trust. The equity associated with these units was recognised in GMT’s balance sheet from the date of acquisition, therefore this issue did not result in any additional equity being recognised by GMT.
ACCOUNTING POLICIES
Units are classi ed as equity. If new units are issued in the year, any external costs, net of tax, directly attributable to the issue are deducted from the proceeds received.
GMT receives fund management services from GNZ and pays GNZ a management fee (the “base fee”). Other than in limited circumstances as set
out in the Trust Deed, GNZ is required to use its base fee to invest in newly issued units in GMT. The fee arrangements are considered a share based payment. GMT recognises fees for management services at the time those services are provided. Fees are paid six monthly in arrears, and the proceeds immediately reinvested. The fee not yet paid and reinvested is re ected within the unit based payments reserve until such time as it has been settled.
4.2 Earnings per unit
Earnings per unit is calculated as pro t after tax divided by the weighted number of issued units for the year. Operating earnings is a non-GAAP nancial measure included to provide an assessment of the performance of GMT’s principal operating activities. The calculation of operating earnings before other income / (expenses) and tax is set out in Pro t or Loss, with a reconciliation of operating earnings after tax as follows:
$ million 2017
Operating earnings before other income / (expenses) and tax 121.7 Income tax on operating earnings (15.2) Income tax on operating earnings of joint venture (0.5)
Operating earnings after tax 106.0
2016
117.0 (17.7) (1.2)
98.1
Weighted average units
million 2017 2016
Weighted average number of units used in calculating basic earnings per unit
Deferred units for Manager’s base fee expected to be reinvested
Deferred units for part consideration of the acquisition of 50% of Highbrook Development Limited Weighted average number of units used in calculating diluted earnings per unit
45 NOTES TO THE FINANCIAL STATEMENTS
1,280.3 1,244.0 - 3.3 - 26.2
1,280.3 1,273.5
GOODMAN PROPERTY TRUST ANNUAL REPORT 2017 FINANCIAL STATEMENTS