. World News – AU – Industrial landlord Goodman Property Trust posted a profit drop to 176 million. USD, but survives Covid well

Leading industrial landlord Goodman Property Trust is benefiting from more consumers shopping online despite seeing a lower profit of $ 176 for the half year. 3 million.

A change in consumer behavior has accelerated e-commerce and customer demand for well-located warehouses for warehouse and logistics space, said Keith Smith, chairman of Goodman.

Half-year profit of 21 percent drops to $ 176. 3 million. are essentially due to a lower increase in the value of real estate in the six months up to and including. September 2020 than in the same period of the previous year.

Despite Covid-19, the industrial portfolio continues to increase in value. Half-year profit included $ 140. 2 million. (pre-tax) property valuation gains, lower than September 2019 semi-annual valuation gains of $ 172. 4m (before taxes).

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Goodman is New Zealand’s largest publicly traded industrial property owner at $ 3. 34 billion properties in 11 industrial areas, all in Auckland.

Smith said the company has adapted to Covid-19 and is continuing its strategy of acquisition and development. The profit was « solid » in a challenging environment.

John Dakin, Goodman CEO, said the past six months had highlighted the vital role well-located warehouse facilities play in the efficient delivery and distribution of goods and materials across the country.

Consumers are choosing the convenience and security of Internet shopping and contactless delivery, and Goodman’s customers are expecting that, Dakin said.

Customer demand was good and the company expected increased business. The demand for tailor-made developments remained strong.

A survey of warehouse customers found that around a third will likely need more space over the next two years. Some struggled to get goods here from overseas and their customers wanted to invest in investments to achieve higher supply efficiency.

The company’s real estate business has been robust. Occupancy was held at almost 100 percent, rental cash flows were in line with expectations, while development demand remained strong.

The economic outlook had improved as the risks of a major Covid-19 outbreak had been managed.

« Business confidence is recovering and our focus on warehouse and logistics properties is positioning the confidence to capitalize on the growing digital economy, » said Dakin.

A third of the income comes from big names like NZ Post, Fletcher Building, Office Max, DHL, Foodstuffs, Freightways and Toll.

The trust was $ 87. 7 million development work was in progress, resuming a large warehouse project that had been suspended during the Covid-19 impact assessment.

Goodman’s low debt would enable him to take advantage of opportunities. The company had around 400 million. USD in funding.

Goodman Property, Finance, John Dakin, Net Income, New Zealand, Profit Call