Strategy

BUSINESS STRATEGY

A commitment to building a portfolio of exceptional quality has always underpinned the investment strategy of GMT.

The acquisition of the remaining interests in Highbrook Business Park in 2012 and a focus on organic growth since then, have transformed the portfolio.

The progression of the development programme, significant asset sales and selective acquisitions are all having a positive impact, lifting the quality of the portfolio and reinforcing the Trust’s position as a premium property provider.

With more than $535 million of new development projects over the last five years GMT’s strategic land holdings are being converted into high quality, income producing assets.

Funded through asset sales, it is a sustainable activity that is growing cash earnings and increasing investment in the preferred Auckland industrial sector. It is also improving the financial metrics of the business, de-leveraging the balance sheet and providing substantial capacity for future opportunities.

GMT’s property portfolio is now predominantly invested in Auckland. The capital allocation reflects the strong growth profile of the city and the positive investment characteristics of industrial property.

These conditions are expected to continue over the short to medium term and the Board believes that the existing strategy, with its focus on maximising the performance of the investment portfolio and development led growth, remains appropriate.

With a $2.4 billion property portfolio and a loan to value ratio of just 30.6%, GMT is a substantial and robust business with a secure and diverse capital structure - features that are reflected in the investment grade credit rating of BBB assigned by Standard & Poor’s.