GMT preliminary second half FY24 valuation

Goodman (NZ) Limited, advises that draft reports from independent valuers indicate that GMT's portfolio will be valued at around $4.5 billion at 31 March 2024. This reflects a $258 million or 5.4% reduction in the fair value of GMT's property assets since 30 September 2023, and an annual reduction of $484.5 million or 9.7%. James Spence, Chief Executive Officer said, "While high-quality logistics and warehouse property has been one of the best performing property sectors over the last 12 months, the higher interest rate environment continues to impact real estate investment yields." The weighted average capitalisation rate of GMT's investment portfolio is forecast to be 6.0%, compared to 5.2% at 31 March 2023. James Spence said, "GMT's strong portfolio fundamentals, with average occupancy of 99% and market rental growth of 3.6% over the last six months, have mitigated the full impact of softening capitalisation rates on property values." "With an initial yield of 5.3% the level of under-renting within the stabilised portfolio remains substantial. The potential reversion to market as assessed by valuers is around 23%. The benefits of this will be realised over time, as contract rents are reviewed to market and new leases are secured at the higher market rates." With $226.5 million of the forecast $484.5 million full year reduction already recognised in GMT's interim financial statements, the impact to net tangible assets (from $2.305 per unit at 30 September 2023) is a decrease of around 18 cents per unit. The result remains subject to finalisation of valuation reports and audit of GMT's financial statements. Further details will be provided with the Trust's FY24 annual result expected to be released in May 2024. For further information, please contact: James Spence Chief Executive Officer Goodman (NZ) Limited (021) 538 934 Andy Eakin Chief Financial Officer Goodman (NZ) Limited (021) 305 316 About Goodman Property Trust: GMT is an externally managed unit trust, listed on the NZX. It has a market capitalisation of around $3.0 billion, ranking it in the top 20 of all listed investment vehicles. The Trust is New Zealand's leading warehouse and logistics space provider. It has a substantial property portfolio, with a forecast value of $4.5 billion at 31 March 2024. The Trust also holds an investment grade credit rating of BBB from S&P Global Ratings. The Manager of the Trust is Goodman (NZ) Limited, a subsidiary of the ASX listed Goodman Group. Goodman Group is an A$82.9 billion specialist global manager of warehouse, logistics and data centre real estate. End CA:00426107 For:GMT Type:GENERAL Time:2024-02-13 14:24:55