Goodman Property Trust mulls capital raising 

Source: ONE NewsTen dollar note

NZX-listed Goodman Property Trust is considering raising $100 million through a retail bond offer.

The trust on Thursday said the capital would be used to pay down bank debt, diversify debt funding and extend debt facilities.

The Standard & Poor's BBB+ rated offer is expected to open November 16 and close December 10.

The announcement came as the company reported a turnaround in its half year result for the six months ending September 30, 2009.

During the period the trust made a net profit of $13.2 million, up $24 million on the $11.3 million loss reported for the same period last year.

The trust delivered what it described as a "sound" operating performance, with operating revenue increasing 5.0% or $2.6 million to $53.5 million compared with the six months to September 2008.

The trust says the increase reflects rental growth and contribution from completed developments.

Distributable earnings of $38.5 million were down 9.8% on the $42.7 million generated last year. Trust CEO John Dakin says the decrease resulted from higher finance costs following its refinancing at the end of last year, and a more subdued leasing market.

The trust will pay a second quarter cash distribution of 2.125 cents and 0.065 cents in imputation credits.

Hear what Goodman Property Trust CEO John Dakin has to say when he features on NZI Business on Friday November 6. NZI Business airs at 6am on TV ONE.