Financial Terms
AUM – Assets under management: total value of properties directly held or under management (used synonymously with FUM or funds under management).
Business Day – The meaning given to that term in the Listing Rules.
Direct investments – Assets held directly, such as property, stocks and bonds purchased directly through brokers and other intermediaries.
Distribution yield – The annual distribution expressed as a percentage of the unit price.
Dividend yield – The annual dividend expressed as a percentage of the security price.
DPS – Distribution per security: Total distributions to investors divided by the number of securities outstanding.
EBIT – Earnings before interest and tax.
EPS – Earnings per security. Total earnings divided by the number of securities outstanding.
Ex-distribution – Units traded after this date will not qualify for the forthcoming distribution.
Funds management – The management of third-party property funds.
Gearing – The level of a company’s borrowings relative to its assets.
GIL – Goodman International Limited (ABN 69 000 123 071) and its controlled entities (formerly Macquarie Goodman Management Limited or MGM).
GIT – Goodman Industrial Trust (ARSN 091 213 839) and its controlled entities (formerly Macquarie Goodman Industrial Trust or MGI).
GMT – Goodman Property Trust (formerly Macquarie Goodman Property Trust or MGP): a listed property trust on the New Zealand Exchange managed by GMG.
Goodman Group or GMG – Goodman International Limited and Goodman Industrial Trust, trading as Goodman Group (formerly Macquarie Goodman Group or MGQ).
Hedging – Reducing exposure to risk of loss resulting from fluctuations in exchange rates, commodity prices, interest rates, etc.
LPTs – Listed property trusts: collective investments which pool investors’ money. REITs are more tax efficient than listed property shares as rental income and the proceeds from the disposal of investment properties are exempt from corporation and capital gains tax.
Managed funds – Listed or unlisted property funds managed on behalf of institutional and retail investors.
Market capitalisation – The unit price multiplied by the number of units on issue.
NAV – Net asset value: The value of the total assets less liabilities. Liabilities for this purpose include both current and long-term liabilities. To calculate the net asset value per ordinary security, divide the net asset value by the number of securities on issue.
NTA – Net tangible assets: the value of gross assets less all debts and other liabilities, divided by the number of units on issue expressed as a dollar value.
NZX – New Zealand Exchange Limited or New Zealand Exchange being the equity security market operated by it, as the case requires.
Premium – The amount by which the market price per security of an investment trust or company exceeds the NAV or NTA per security. The premium is normally expressed as a percentage of the NAV or NTA value per security.
Record Date – The day MGP’s unit register is closed for the purpose of determining a Unitholder’s entitlement to the distribution for the relevant period.
Return on assets – A measure of a company’s profitability, equal to a fiscal year’s earnings divided by its total assets, expressed as a percentage.
Return on capital – A measure of how effectively a company uses the money (borrowed or owned) invested in its operations.
WACC – Weighted average cost of capital: an average representing the expected return on all of a company’s securities.
Property Terms
3PL – Third-party logistics provider: A network arranger who coordinates and supervises all aspects of the logistics chain and is the sole contract for both the company and the logistics service providers.
Brownfield site – A site held for redevelopment but with existing building improvements.
Greenfield site – A site that has no building improvements and is being held for future development.
NLA – Net lettable area.
Speculative development – A development that commences with no customer precommitment.
Sqm – Square metres.
WALE – Weighted average lease expiry: of an asset or a portfolio of assets.