Goodman NZ Doubles Profit on Property Revaluation and Expands Development Pipeline

Profit Surge Driven by Property Revaluation and Leasing Strength

Goodman NZ (NZX:GNZ) posted a striking 126.3% jump in statutory profit after tax to $248 million for the year ended 31 March 2026, largely fueled by a $111.2 million uplift in the fair value of its industrial property portfolio. This compares to a modest $11.1 million gain in the prior year and underscores the premium placed on high-quality warehouse and logistics assets in Auckland’s constrained industrial market.

Underlying operating earnings before tax rose 3.6% to $159.8 million, reflecting robust portfolio performance despite a 15.8% decline in total revenue to $233.9 million due to the structural shift from direct property income to fee and equity-accounted income following the Highbrook Business Park transaction.

Leasing Activity and Rental Growth Maintain Momentum

Leasing remained a bright spot with 132,522 sqm of stabilised space secured on new or revised terms, delivering an impressive 22.1% rental uplift on new leases. The portfolio maintained a high occupancy rate of 96.9%, with a weighted average lease term of 4.9 years, supporting a like-for-like rental growth of 5.3%. Independent valuers confirmed a portfolio capitalisation rate of 5.9% and initial yield of 5.2%, reflecting sustained investor appetite.

Goodman NZ’s CEO James Spence highlighted the ongoing demand for assets capable of supporting advanced automation and operational technology, noting that customers are committing significant capital to upgrade facilities. The company is actively recycling assets that no longer meet evolving requirements into its development pipeline or via capital transactions.

Strategic Development Pipeline and Capital Recycling

Goodman NZ is progressing a substantial development program, with a pipeline valued at over $1 billion. Key projects include a 21,850 sqm multi-unit warehouse development underway at Mt Wellington, targeting completion in the first half of 2027, and the recent acquisition of a 5.1-hectare site on Felix Street, Onehunga, earmarked for a mix of multi-unit and standalone facilities with a 5 Green Star rating.

Infrastructure works are advancing at Penrose Industrial Estate to support future data centre use, with a 32MVA power connection expected by mid-2028, and earthworks at Waitomokia in Māngere are preparing sites for construction starting in the second half of FY27.

The company recycled nearly $700 million of capital during the year through the Highbrook Partnership settlement and Bush Road Estate sale, reducing its look-through loan-to-value ratio to a conservative 19.8% and maintaining committed gearing at 24.0%. Cash reserves stood at a healthy $485 million, bolstered by the repayment of bank debt and a shift toward wholesale and retail bond funding.

Corporate Restructuring and Shareholder Returns

On 7 April 2026, Goodman NZ completed its transition from a unit trust to a corporatised and stapled group structure, combining Goodman New Zealand Limited and Goodman Property Services (NZ) Limited. This move was strongly supported by unitholder and bondholder approvals and positions the company for expanded property funds management and active investment opportunities.

The company initiated an on-market buyback program to acquire up to NZ$125 million in securities, though this is currently paused pending shareholder approval at the upcoming Annual Shareholder Meeting. The buyback is expected to be accretive to net tangible assets and cash earnings per share.

Distributions for FY26 increased 5.0% to 6.825 cents per security, representing an 85.5% payout ratio. Looking ahead, Goodman NZ forecasts around 5% growth in cash earnings and distributions for FY27, with dividends expected to reach 7.17 cents per security.

Sustainability Credentials and Market Position

Goodman NZ continues to enhance its sustainability profile, achieving Green Star Performance ratings across $358 million of properties and targeting further certifications in its development projects. The company’s portfolio is increasingly energy efficient, with LED upgrades and submetering contributing to emissions reductions aligned with science-based targets.

With Auckland’s industrial market supply constrained and demand focused on modern, technology-enabled facilities, Goodman NZ’s strategic focus on infill locations and active asset management supports its outlook for sustained earnings growth.