Quick reads & links:
2 apartments sell under hammer, 2 shortly after
Revaluations give Goodman big lift
Commerce Commission cuts Transpower’s revenue limit
National median house price up 8.2% in year
2 apartments sell under hammer, 2 shortly after
2 apartments sold at Ray White City Apartments’ auction today and another 2 shortly after. The remaining 2 were passed in.
16 Gore St, unit 6F, sold for $220,000, Damian Piggin
Eden Apartments, 32 Eden Crescent, unit 14G, passed in at $380,000, Damian Piggin
Columbia, 15 Whitaker Place, units 10D & 10E, each passed in at $150,000 + gst, then both offered together passed in at $300,000, sold shortly post-auction for $165,000 + gst each, Damian Piggin
Eden Green, 11 Union St, unit 812, passed in at $350,000, Gabriela Galateanu & Justin Wu
Prince Albert, 41 Albert St, unit 3F, sold for $675,000, Adam Gurr
Revaluations give Goodman big lift
Revaluation gains lifted the Goodman Property Trust to a record $236.4 million half-year profit, management company Goodman (NZ) Ltd said today.
As well as contributing 73% of the half-year profit, the $172.4 million of revaluations lifted the portfolio by 6% to $3 billion.
Other result highlights:
- Net tangible assets, up 10.1% to 172.8c/unit (157c at 31 March)
- Adjusted operating earnings $53.7 million before tax or 4.11c/unit
- Cash distributions 3.325c/unit, representing about 106% of the trust’s 3.15c/unit cash earnings
- Loan:value ratio 17.9%, committed gearing 20.6%
- Bank facility refinanced in November on new terms, increased to $400 million comprising 3 traches with a weighted average term to expiry of 3 years
- $175 million of new equity raised through a $150 million placement in September and a $25 million retail unit offer completed after the interim balance date
- 9 new industrial projects started, total project cost $123.2 million.
Commerce Commission cuts Transpower’s revenue limit
Continuing low interest rates have contributed to the Commerce Commission’s decision to cut the maximum revenue it will allow Government-owned Transpower NZ Ltd to earn over the next 5 years.
Deputy chair Sue Begg said the commission had approved a revenue allowance of $4.05 billion for the next 5 years, 15% ($685 million) less than for the current 5-year period.
She said the key reduction in allowable revenues resulted from the significant reduction in the weighted average cost of capital from 7.19% in the current period to 4.57% for the 2020-25 period, mainly due to the economy-wide reduction in interest rates.
The commission also issued its final decision on the minimum quality standards Transpower must meet under its individual price-quality path for the 2020–25 period: “We are also asking Transpower to continue to up its game in terms of customer & stakeholder engagement. We have asked it to provide a customer engagement plan and to report on the effectiveness of its consultation over capital expenditure. We think these new requirements will benefit Transpower’s customers.”
National median house price up 8.2% in year
The median house price for the whole of New Zealand rose 8.2% in the last year to a record $607,500 ($561,500), the Real Estate Institute said today.
Auckland’s contribution was a 0.8% increase to $868,000 ($861,000 a year ago). The increase for the rest of the country was 8.6% to $520,000 ($479,000).
- More details to come tomorrow.
About Propbd on Q
You’ll find brief entries in Propbd on Q (as in property on Queen St, Auckland’s main street) about a variety of topics. I’ll enlarge on some of them in subsequent stories.
It’s a handy way for you (& me) to keep track of listed company announcements, which often don’t justify more than a sentence or 2, and is a quick reference point on a variety of other topics.
The Propbd on Q entries from auctions will give you the price, and subsequent stories will fill in the detail.
Propbd on Q is not a daily entry, just posted when the occasion arises, and it can be updated several times in one day.
You can keep an eye out for new Propbd on Q pages in the left-hand column of the website or via social media (following me on Twitter or Facebook), and track that section of the website via the BDeep & the Quick tab at the top of the page.
I’ve also brought back World property and introduced World influences to post short items from overseas – World property on the property sector, World influences focusing attention on economic, financial & political events that I see influencing markets.
You’ll be able to access them in the same ways.
Attribution: Auction, Goodman, Commerce Commission, Real Estate Institute.
