Australian property group Goodman made a full year operating profit after tax of A$408m for the year ended 30 June 2009, but posted a statutory accounting loss of A$1.12bn as a result of write-downs.
The group said the loss was due to property and equity investment revaluations of A$1.15bn, mark to market movements and other non operating items.
Over the year it has raised A$956m of equity and on 6 August announced capital management initiatives including a A$1.3bn equity offer, expected to conclude on 16 September and a A$500m security issue to China Investment Corporation. A further $4.1bn of debt restructuring initiatives are also underway.
Goodman said on a pro forma basis, it has liquidity of A$1.1bn, gearing of 26.7% and an expected interest cover ratio of 3.2 times. It said the operating fundamentals of its portfolio remained strong.
Chief executive Greg Goodman said: ‘This result has been achieved in the context of the ongoing challenging operating conditions experienced by the property industry over the last year.
‘Our management team’s focus has been to strengthen the group’s financial position. We have undertaken a range of capital management and strategic initiatives during the year, and postbalance date, at the group level and in our managed funds to significantly improve our balance sheet, lower operating costs and position the group to capitalise on its leading industrial property and business space platform. We will keep our core managed funds sound and explore growth with new capital and relationships, such as China Investment Corporation (CIC) and Canada Pension Plan Investment Board.’
Operating earnings per security (EPS) was 17.4 cents and distribution per security (DPS) was 9.65 cents.
In its operational highlights, Goodman said its total investment portfolio was worth A$5.6bn, and 94% let. It said it let 1.6m sq m over the period, but due to the market conditions made a valuation loss on the portfolio of A$522m.
It said third party assets under management remained unchanged over the year at A$14.3bn, while total assets under management declined from A$18.6bn to A$18.5bn.
Goodman and its partners delivered 84 developments during the year, worth A$2.1bn, with pre-lets secured for 88% of the schemes. It withdrew from development A$864m of developments to conserve capital.
Goodman said: ‘We believe that property fundamentals are holding up relatively well and early signs are emerging that market conditions are beginning to stabilise. Liquidity is returning to the market and capital markets conditions also appear to be easing. The group has retained its global business platform, which will be a significant benefit as markets show further signs of improvement.’
Barring material changes to market conditions, Goodman said it expected to make an estimated operating profit after tax of A$310m, EPS of 5.7 cents, and DPS of 3.4 cents paid for the year.