Goodman NZ Ltd & Goodman Property Services Ltd (NS) Analysis

Overview

Goodman New Zealand Limited & Goodman Property Services (NZ) Limited (NS) is a managed investment scheme and New Zealand’s leading warehouse and logistics space provider.

With a $4.7 billion property portfolio (30 September 2023) it is a high-quality business built around a wide customer base and a proven development capability. An investment strategy focused on the Auckland urban logistics market provides the Trust’s 215+ customers with operationally efficient facilities close to consumers and key transport networks.

Around 90% of the core investment portfolio has been developed since 2004. GNZ’s commitment to a sustainable, low-carbon future is reflected in the carbonzero certification for its business operations from Toitū. The Trust’s development programme is also committed to carbon neutral projects and is targeting a 5 Green Star Built rating for all new developments.

GNZ was listed on the NZX Main Board in 1999 and has a market capitalisation of $3.2 billion (28 March 2024). It is one of the NZX's largest listed issuers and is included in the NZX20 index. It also has an investment grade credit rating of "BBB" from Standard & Poor's Global Ratings.

The management of GNZ was internalised on 28 March 2024. The ASX listed Goodman Group, holds a 31.8% cornerstone Unitholding in GNZ.

GNZ Bond Issuer Limited (GMB), a wholly owned subsidiary of Goodman Property Trust, has made six public debt issues since 2009. The GMB040 Goodman+Bonds and GMB060 Green Bonds are yet to mature and are listed on the NZDX.

Performance

The following information was extracted from Goodman New Zealand Limited & Goodman Property Services (NZ) Limited's full year results, released on 26 May 2026:

Goodman NZ (GNZ) has announced its annual results for the year ended 31 March 2026. GNZ’s strong result reflects the quality of its warehouse and logistics portfolio, underpinned by an operating model that supports sustainable earnings and distribution growth.

Annual highlights include:

+ Statutory profit of $248.0 million after tax, compared to $109.6 million in FY25, up 126.3%.

+ $111.2 million increase in fair value of properties (including GNZ’s share of Highbrook) compared to $11.1 million in FY25, resulting in GNZ’s total properties under management valued at $4.9 billion.

+ New fee revenue stream from the Highbrook Partnership contributing to a 3.6% increase in operating earnings before tax, to $159.8 million with operating earnings after tax of $127.6 million (FY25: $125.0 million), up 2.1%.

+ A 5.7% increase in cash earnings to 7.98 cents and a 5.0% increase in full year cash distributions to 6.825 cents, reflecting a pay-out ratio of around 85.5%.

+ A robust balance sheet, with net tangible assets of 211.9 cents per security and a look through loan to value ratio of 19.8%, with committed gearing of 24.0%.

+ Almost $700 million of capital recycled through the settlement of the Highbrook Partnership and the sale of Bush Road Estate during the period.

+ Initiated an on-market buyback to acquire up to NZ$125 million in securities.

+ Commencement of 21,850 sqm multi-unit warehouse development, the first stage of the regeneration plan for its value-add estate in Mt Wellington.

+ 132,522 sqm of stabilised leasing completed with leasing reversions of 22.1%5, portfolio occupancy of 96.9% and a weighted average lease term of 4.9 years.

+ Like-for-like rental growth of 5.3%, with potential rent reversion to market of 19.5%. + Green Star Performance rating achieved across $358 million of properties.

Chief Executive Officer James Spence said, “Our FY26 financial results were delivered in line with guidance, reflecting strong performance across the business. GNZ continues to generate underlying cash earnings growth in excess of 5% per annum, largely driven by rental reversions exceeding 20%.

We continue to execute our targeted development strategy to deliver new product into prime Auckland industrial locations with limited new supply. GNZ has a significant development pipeline within the Value Add portfolio that supports a broad range of flexible property requirements.