Focused on asset
Goodman has continued its strong operating
performance into the second half of the 2015
financial year, with sustained activity levels and
development momentum across our highly
diversified platform, spanning 16 countries.
Combined with the consistent and disciplined
execution of our business strategy, this is positioning
the Group for significant financial and operational
flexibility in future periods.
We have increased total assets under management
to $30.3 billion, with the main drivers being
$1.8 billion of development completions and
favourable currency movements. For the 2015
financial year, Goodman is estimating $700 million
in property revaluations, with significant contribution
from urban renewal sites and rising property values,
as investors seek higher yielding assets.
Our property services teams around the world have
achieved solid leasing results in the financial year to
date, with overall leasing activity of 2.5 million sqm
for the Group and our Partnerships. This leasing
success has underpinned stable occupancy of 96%
across our total portfolio.
A key focus for Goodman in the current low growth,
low interest rate environment is on our capital
recycling initiatives, to improve the quality of our
assets and income. To achieve this, we are
selectively selling assets across the Group and
our Partnerships where value has been maximised.
This has seen $1.4 billion of properties sold in the
financial year to date, mainly in Australia and the
United Kingdom (UK), with $320 million and $415
million of sales respectively.
In the UK, this activity has already helped to improve
overall portfolio quality, with occupancy in our
UK Business Parks portfolio increasing to its
highest level of 98% at the end of the March quarter.
Goodman has a further $500 million of assets
currently on the market, which reflects the ongoing
strong investor demand for high quality industrial
The proceeds from our asset sales programme are
being reinvested into the strength of our diversified
and growing development business and in targeted
investment opportunities. This in turn will drive higher
long-term returns and value creation for our
to build on the strong
delivered in the first half
of the financial year,
sustaining robust activity
levels into the second half.