Goodman NZ reports $248.0 million profit after tax
26/05/2026 08:34 NZST, FLLYRP
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%, 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.
OVERVIEW
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.
Demand and enquiry across the Auckland industrial market continues to focus on assets that can accommodate more advanced automation and operational technology, with customers committing substantial capital to their facilities. We are continuously assessing the suitability of sites across the portfolio, with assets that are unable to meet these evolving requirements identified for recycling, either into the development pipeline or through capital transactions.
During the year, we advanced several strategic growth initiatives, including establishing an investment management platform through the Highbrook Partnership, securing 5.1 hectares of land on Felix Street in Onehunga – a site presenting a rare, large-scale development opportunity – and progressing development activity at Mt Wellington, Waitomokia and Penrose.”
Asset values for high-quality logistics and warehouse property increased over the year with an annual revaluation uplift of $111.2 million recorded for our assets, compared to modest fair value gains of $11.1 million in FY25. On a look-through basis, GNZ's investment portfolio has a weighted average capitalisation rate of 5.9% and initial yield of 5.2% at 31 March 2026.
Diversified revenue streams from the Highbrook Partnership, positive leasing results and the impact of prior development completions have contributed to the 5.7% increase in cash earnings to 7.98 cents per security.
Cash distributions for FY26 increased 5.0% to 6.825 cents per security, reflecting a pay-out ratio of around 85.5%.
Post balance date, we completed the transaction to transition GMT to a corporatised and stapled structure. Receiving both Unitholder and Bondholder approval on 31 March 2026 reflects the strong endorsement for our business and support of GNZ’s strategic direction, growth in our property funds management platform and pursuing a greater level of active investment opportunities.
PORTFOLIO PERFORMANCE
GNZ’s Core Portfolio has performed well and delivered positive leasing results with 132,522 sqm of space secured on updated terms. Average portfolio occupancy of approximately 97.7% was achieved throughout the year, with a weighted average lease term of 4.9 years at 31 March 2026.
Leasing activity lifted earlier in the year, though customer decision-making timeframes have since lengthened. Auckland industrial market fundamentals remain strong, with the long term outlook remaining positive – total new supply completions for 2025/2026 sit below recent years despite an increase in speculative development, with our pipeline concentrated in constrained submarkets close to end consumers. This reflects continued confidence in the global trend towards last-mile and consumer-proximate warehousing.
Rent reviews and new leasing contributed to like-for like rental growth of 5.3%. Consistent with independent valuers’ assessments, the potential rent reversion within the portfolio remains significant at around 19.5% which GNZ expects to capture over time.
STRONG BALANCE SHEET CAPACITY SUPPORTS GROWTH
Prudent financial management has continued to support GNZ’s sustainable growth.
During the period, nearly $700 million of capital was recycled, reducing GNZ’s look through loan to value ratio to 19.8%, with committed gearing at 24.0%.
These capital inflows also enabled a restructuring of GNZ’s bank debt facilities. With $700 million retained in wholesale and retail bonds, bank debt was fully repaid and undrawn facilities reduced to $95 million. GNZ has substantial liquidity with cash balances of more than $485 million.
Chief Executive Officer James Spence said, “We remain focused on maintaining a strong capital position, with ample forward-looking capacity to capture opportunities, particularly in an environment of increasing capital scarcity.”
Reflecting GNZ pursuing more active earnings opportunities, our preferred look-through gearing range has been broadened to 15-30%, lowering the minimum from 20% while maintaining the upper limit at 30%.
DEVELOPMENT UPDATE
During the period, we progressed our development programme, commencing the first stage of regeneration at our Mt Wellington estate. Demolition and enabling works are complete and above ground construction is now underway.
The multi unit, build-to-lease development will provide around 21,850 sqm of high-quality, Green Star rated warehouse space. The project remains on schedule for completion in the first half of 2027. Work on site is advancing, with foundations and the structural frame progressing.
Development plans at Felix Street in Onehunga are well progressed, with settlement of the $53.5 million acquisition expected at the end of May 2026. Featuring a combination of multi unit buildings and standalone facilities, the estate is being designed to high specification and targeting a 5 Green Star rating. Works are planned to commence in the second half of FY27. The project represents a unique opportunity for owner-occupiers, investors and lessees, providing flexibility to accommodate a broad range of modern warehousing requirements.
At Penrose Industrial Estate, we continue to prepare the site for data centre use and have committed to preliminary design and infrastructure works. Our focus remains on key workstreams to have a development-ready site with power and design flexibility to provide optionality to meet the requirements of data centre customers. With a works agreement for a 32MVA power connection expected shortly, we anticipate an on-site power connection in the first half of 2028.
Chief Executive Officer James Spence said, “We believe New Zealand is well positioned to capture data centre investment supported by a strong renewable electricity grid and growing demand for digital infrastructure. Our investment at Penrose reflects a disciplined, staged approach that is consistent with our broader capital allocation.”
At Waitomokia in Māngere, earthworks are progressing with the first development site ready for above ground construction in 2H FY27.
ON-MARKET BUYBACK
A buyback of GNZ securities at current prices presents an attractive risk adjusted return, offering a well-defined, value driven opportunity, accretive to both net tangible assets and cash earnings per share. GNZL and GPS are now code companies under the Takeovers Code. The buyback is currently paused pending shareholder approval to re-initiate it which will be sought at GNZ’s Annual Shareholder Meeting later in 2026. The final terms of the buyback will be detailed in the Notice of Meeting.
OUTLOOK AND FY27 GUIDANCE
While broader geopolitical and economic volatility continues to impact activity over the short to medium term, GNZ’s investment strategy is well supported by substantial balance sheet capacity and a disciplined approach to capital allocation.
James Spence said, “Executing on strategic initiatives during the year including the establishment of our property funds management business has extended the scope of our operations and enhanced financial flexibility for the business. This platform has enabled income diversification and allowed GNZ to recycle capital for reinvestment into higher-yielding opportunities.
Development is expected to remain a significant component of GNZ’s business as we expand into the development and sale of land parcel and turn-key assets to meet demand in markets where investment and owner occupier opportunities are limited. A measured allocation of invested capital to develop-to-sell opportunities introduces more active income streams, while remaining modest relative to the scale of GNZ’s core business.
Supply constrained Auckland industrial locations reinforce the execution of our targeted strategy to deliver new product. Our in-house expertise, proven track record and GNZ’s in-built development pipeline of more than $1 billion underpins future opportunities. Our current projects are progressing well, and we continue to actively assess opportunities including options to undertake develop-to-sell projects which we expect to further support earnings growth.”
Full year cash earnings are expected to grow by around 5% in FY27 with dividends expected to be 7.17 cents per security, a 5% increase on FY26.
Further commentary on the FY26 financial result is included in the presentation attached to this announcement. Goodman NZ’s FY26 Annual Report, including its sustainability report, remuneration report and Climate Related Disclosures is expected to be released in late June 2026.
For further information, please contact:
James Spence
Chief Executive Officer
(09) 903 3269
Andy Eakin
Chief Financial Officer
(09) 375 6077
1.Post balance date, on 7 April 2026 the transaction to transition Goodman Property Trust (GMT) to a corporatised and stapled structure, GNZ, was completed. GNZ has a stapled group structure. The Stapled Group comprises Goodman New Zealand Limited (GNZL), Goodman Property Services (NZ) Limited (GPS), and subsidiaries of GNZL and GPS. The financial statements provided with this release are consolidated financial statements of Goodman New Zealand Limited and its wholly-owned subsidiaries and Goodman Property Services (NZ) Limited, each of GNZL and GPS being a "stapled entity", and together Goodman NZ (GNZ or the Group).
2.Operating earnings is a non-GAAP financial measure included to provide an assessment of the performance of GNZ’s principal operating activities. The calculation is set out in Goodman NZ’s Statement of Comprehensive Income and in note 5.1 of the financial statements, provided with this release.
3.Cash earnings is a non-GAAP measure that assesses free cash flow on a per unit basis, after adjusting for certain items. Calculation of GNZs cash earnings (GPS and GNZL as a consolidated group) is set out in the GNZ’s FY26 Annual Result Presentation provided with this release.
4.Loan to value ratio is a non-GAAP financial measure used to assess the strength of GNZ’s balance sheet. This is set out in the GNZ’s FY26 Annual Result Presentation, provided with this release.
5.Uplift excludes deals with caps on renewals.
6.This rating relates to NZGBC’s Green Star Performance Energy & Water pathway, rather than a full building certification and includes Highbrook assets.
Attachments provided to NZX:
1. Goodman NZ NZX Annual Result Announcement
2. Goodman NZ’s 2026 Annual Result Presentation
3. Goodman NZ’s 2026 Financial Statements
4. NZX Results Announcement Form
About Goodman NZ:
Goodman NZ (GNZ) is New Zealand's leading warehouse and logistics space provider, with a high quality industrial property portfolio valued at $4.9 billion (including assets under management) as at 31 March 2026. GNZ has more than 200 customers, a proven development capability and is focused on core industrial property markets in Auckland. GNZ is one of the NZX’s largest listed issuers and holds an investment grade credit rating of BBB from S&P Global Ratings.
GNZ has a stapled group structure. The Stapled Group comprises of Goodman New Zealand Limited (GNZL) and Goodman Property Services (NZ) Limited (GPS), and any subsidiaries of GNZL and GPS.