Auckland's booming industrial market is paying off for Goodman Property Trust (GMT), with a more than 10-fold increase in gains on the value its portfolio.
The large property developer and investor's first half net profit nearly quadrupled to $224.3 million in the six months to September, compared with $59.3m the year earlier.
The increase is mostly the result of a $172.4m gain in the fair-value of its properties, driving the total value of the portfolio up to $3.0 billion.
Revenue from continuing operations rose 7 percent to $84.1m, while its underlying profit fell 4 percent, to $53.7m.
The manager of Goodman Property Trust John Dakin said the significant portfolio revaluation, successful leasing outcomes, further development progress and new strategic acquisitions contributed to GMT's record interim profit.
The trust recently raised $175m in capital through a share offer to provide it with greater financial flexibility, reduced debt gearing and position the business for long-term growth.
"Completing the build-out of GMT's remaining greenfield land and activating the value-add opportunities within the portfolio remains the current focus," he said, adding the trust had $235.6m of projects under construction.
"GMT's own portfolio is almost full and, with no large warehouse spaces available, these build-to-lease projects provide much-needed new supply."
Mr Dakin said the Auckland industrial property market was expected to continue to be New Zealand's best performing commercial real estate sector.
He expected the Trust's full year earnings to be consistent with last year's.