management report

An active property strategy, an improving operating environment, and established customer partnerships are delivering strong results for GMT.

The management team are extremely pleased with the successful operating result that has been achieved this year.

Earlier investment decisions and an accelerating development programme have enhanced the portfolio while an improving economic environment and rising business confidence are contributing to greater levels of customer enquiry and strengthening property market fundamentals.

All these factors are having a positive impact on GMT’s financial performance, contributing to the 15.3% increase in distributable earnings before tax, to $101.1 million.

Property portfolio

GMT’s investment portfolio provides over a million square metres of high quality industrial and office space that is leased to more than 250 customers. It is the long-term partnerships created with these leading companies, that drive the Trust’s operating performance.

An ongoing focus on customer relationships together with improving property market conditions, characterised by higher occupancy levels and modest rental growth, are helping maximise cashflows and asset values across the investment portfolio.

Development focus

Advancing GMT’s development programme and realising the value in its strategic land holdings remains a key business focus. It is part of a strategy that has added over 600,000 sqm of new space to the portfolio since 2004.

With increasing levels of economic activity driving customer demand, 15 new development projects with a combined total project cost of $165.7 million have been announced since March 2013.

Sustaining this level of activity over the next 2-3 years, as the economy grows, will enhance the portfolio and deliver substantial benefits to GMT investors while improving the quality and profile of the Trust’s earnings.

Capital management 

Prudent capital management policies have enabled the Trust to retain a strong balance sheet position while pursuing its development and investment objectives. 

At 31 March 2014 net borrowings represented 36.0% of property assets.


While today’s operating environment is supporting a more active property strategy, we remain focused on creating a high quality business underpinned by prime assets, leased to strong customers on extended terms.

It’s the right strategy for a growing economy and we look forward to reporting on progress in another 12 months' time.










The management report is shown in its entirety on page 2 of the 2014 Annual Report available through the following link.

On behalf of the management team.


John Dakin
Chief Executive Officer 


Andy Eakin
Chief Financial Officer 

John Dakin and Prime Minister John Key unveil the plaque at the official opening of The Crossing

We remain focused on creating a high quality business underpinned by prime assets, leased to strong customer on extended terms.

An artist impression of the new Fonterra Building acquired ahead of its completion in 2016.