Goodman's net loss narrows to EUR 393m in 2010

Australian industrial REIT Goodman Group reported net losses narrowed to A$562 mln (EUR 393 mln) in the year ended June 30, compared with a A$1.12 bn loss a year earlier, largely as a result of reduced property writedowns in its portfolio.

The Sydney-based property giant said its operating profit fell to A$310 mln in the year to June 30, from A$408 mln in 2009.

'We have completed a number of initiatives at the group level and in our managed funds during the year that have secured a strong platform for growth,' said Goodman Group's Chief Executive, Greg Goodman. 'This has ensured we are currently well positioned and for when market conditions improve across our key markets.'

Over the past months, the company has gained a number of new global investors, such as Canadian Pension Plan Investment Board (CPPIB), CB Richard Ellis Realty Trust (CBRERT) and China Investment Corporation (CIC). 'Our managed funds platform also continued to gain support from institutional fund investors with A$1.3 bn of new third party equity raised for our Australian, UK, Continental Europe and China platforms,' Greg Goodman noted.

As a result, the group was able to reactivate its A$10 bn development pipeline with the launch of A$1.2 bn of new projects during the year.

'With an environment of stabilising and low growth markets, the strength of our business and the momentum that continues to build into FY2011 ensures that we are well placed to take advantage of current and future opportunities,' Goodman said. The company is forecasting an operating profit after tax of A$370 - A$380 mln for 2011. The group's managed fund platform have recently completed a number of capital management initiatives, with the raising of A$1.1 bn in new equity for four new investment vehicles in the UK, Europe, China and Australia.