Goodman Property Trust Reports $77 Million Loss on Tax Depreciation Charge

Goodman Property Trust, New Zealand’s second-largest publicly traded real estate investor, reported a half-year net loss after incurring a NZ$132 million ($103 million) tax depreciation charge.

The company’s net loss was NZ$99.2 million for the six months to Sept. 30, compared with a profit of NZ$18.2 million a year earlier, it said in a statement. Rule changes that removed tax deductions for depreciation on buildings resulted in the one-off charge, the company said.

While the loss helped to reduce Goodman’s net tangible assets per unit by 20 percent to 82.29 cents, the tax liability would not affect the company’s operating profits, it said. Goodman reported a NZ$30.9 million profit before the charge, compared with NZ$13.2 million a year earlier, the company said.

Goodman “recorded a solid operation performance and what should be a strong profit result of $30.9 million has been impacted by an accounting adjustment,” Keith Smith, chairman of Goodman (N.Z.) Ltd., said in the statement.

The trust owns NZ$1.54 billion of industrial and business space around New Zealand, according to the statement. About 95 percent of its buildings are occupied, it said.

To contact the reporter on this story: Chris Bourke in Wellington at cbourke4@bloomberg.net

To contact the editor responsible for this story: Iain Wilson at iwilson2@bloomberg.net

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