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Goodman portfolio adds $600m

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Goodman Group expects its property portfolio will have added more than $600 million in value by the time it releases interim results.

The property developer said the valuation gains will be "over and above" the operating profit for the half year.

The uplift in valuations principally reflected strong capital inflows and transactional activity which had tightened cap rates for industrial property around the world, "as well as a significant contribution from higher valuations for urban renewal sites", according to the company.

Goodman chief executive Greg Goodman called the valuation gains "a particularly strong result".

The company late last month said total assets under management were "over $32bn" at September 30, rising from the $30.3bn recorded for June 30.

At the 4.15pm (AEDT) official market close, Goodman shares were down 0.33 per cent against a benchmark fall of 0.16 per cent. 

The forecast valuation gains represents more than 34 cents per share, Goodman said. Net tangible assets at June 30 were $3.46 per share. 

Meanwhile, the group reaffirmed its full-year 2016 guidance of 6 per cent growth in operating earnings per share, to 39.4 cents.

In August, Goodman Group posted an operating profit before significant items of $653.5m for the 2015 financial year, an increase of 8.7 per cent on the prior year and in line with the market consensus forecast.

The commercial and industrial property group had lifted statutory profit 84 per cent to $1.2 billion, after property revaluations and foreign exchange movements were taken into account.


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