value of Goodman’s
Goodman finished the 2014 financial year with an investment portfolio valued at $5.6 billion, which compares with $5.2 billion as at 30 June 2013. The portfolio provides the Group with an ownership interest in 430 high quality industrial and business space properties in 16 countries. Specifically, the portfolio consists of the Group’s $2.2 billion of direct property investments, which is represented by 38 assets located in Australia, Europe and the United Kingdom, together with $3.4 billion of cornerstone investments in its managed fund platform and other financial investments.
The growth in the overall investment portfolio continues to increase in line with the growth in our third party assets under management, offset by a number of asset recycling opportunities. These included the disposal of a number of property assets and a reduction in the Group’s cornerstone investment in Goodman European Logistics Fund to facilitate excess investor demand as part of the Fund’s equity raising undertaken during the year. Separately, the Group contributed assets to a new joint venture established in Germany with Malaysia’s Employees Provident Fund.
The Group’s overall investment portfolio performed well, reflected in the solid property fundamentals experienced over the 12 month period. The size, scale and quality of our geographically diverse portfolio, combined with Goodman’s global customer relationships and flexible approach, ensured that we continued to meet the varied needs of our customers and took advantage of the strong demand for industrial and business space experienced during the year. This saw Goodman lease over 3 million sqm of space, equating to $347 million of net property income. We maintained a high occupancy rate of 96%, with like-for-like rental growth of 2.2%.
Goodman’s active asset management approach saw a number of properties and development assets owned by the Group and our managed funds sold in the 2014 financial year. The proceeds from these sales, combined with the partial sell down of the Group’s fund cornerstone investments, have contributed a total of $1.8 billion for recycling into new development and investment opportunities.