Goodman

Goodman Group Securityholder Review 2013

Strength in numbers

Propertyinvestment

Our customer focused approach, size and scale of our quality portfolio, active asset management and diverse global operating platform are key components of Goodman’s business.

The value of Goodman’s investment portfolio was $5.2 billion at 30 June 2013, which is unchanged compared with the 2012 financial year. The portfolio consists of the Group’s direct property investments, which are valued at $2.1 billion and located in Australia, Europe and the United Kingdom, together with $3.1 billion of cornerstone investments in its managed fund platform and other financial investments. Significantly, Goodman’s investment portfolio gives it an ownership interest in 415 high quality industrial and business space properties in 18 countries around the world.

$5.2bn

value of Goodman’s investment portfolio

While the value of Goodman’s investment portfolio remained constant for the period, its composition changed, reflecting an increase in our cornerstone investments through the growth in our third party assets under management. This was partially offset by the sell down of the Group’s holding in Goodman Australia Industrial Fund and the sale of investment properties.

The robust property fundamentals experienced during the period ensured the Group’s overall investment portfolio performed well. Our customer focused approach, size and scale of our quality portfolio, active asset management and diverse global operating platform are key components of Goodman’s business. They ensured we were able to meet the needs of our customers and continued to benefit from the significant global demand for quality industrial property and business space experienced during the year. This was reflected in the 2.9 million sqm of space that Goodman leased, equating to $270 million of net property income. Occupancy levels were maintained at a high 96% and we achieved like for like rental growth of 2.6%.

Goodman’s active asset management approach means that we continually review our properties and assess opportunities to reposition assets to achieve better performance. This includes the adaptive reuse of older style industrial properties, and pursuing higher and better use opportunities. During the year, we also recycled a number of properties owned by the Group and our managed funds. These sales, coupled with the sell down of the Group’s fund cornerstone investments, have provided net proceeds of $1.8 billion for reinvestment in new growth opportunities across our business.

96% occupancy 415 industrial and business space properties