Australian developer and investor Goodman Group has begun a disposal phase it announced as it posted a AU$653m (£307m) operating profit for the full year to the end of June 2015.
Over the year the business disposed of $1.9bn of investment properties, taking advantage of local market conditions and largely reinvested proceeds into further development.
Developments in progress were valued at $3.1bn across 76 projects and 11 countries and 71% were pre-sold to managed partnerships and third parties. Estimated yield to cost on the projects was expected at 8.8%.
Overall the firm still increased its assets under management to $30.3bn up 13% on 2014, driven largely by valuation increases and the completion of some development activity.
Urban renewal projects amounted to another $1.1bn in value of sites globally contracted.
The company has increased its business activities over the past year and upped earnings by 7.1% per security to 37.2p and net tangible assets to $3.46, up 20%.
The third party asset management business increased AUM to $25.2bn, up 13% from the year before. This helped the earnings in the division increase by 7% to $125m.
The arm has available firepower of $7.6bn in undrawn equity and debt.
According to the company’s forecasts the full year 2015-16 is set to increase another 6% to 39.4 cents by the end of June 2016.
