2016 was a year of growth, as the Group achieved a 13% increase in the value of our assets under management. Two key factors played a role in this increase, being the number of developments we completed, and the sustained strong asset prices. This resulted in the positive revaluation of the 412 properties across our 16 country-strong portfolio.
What our portfolio looks like
The value of our direct investment portfolio has continued to rise and now totals $7.5 billion (up from $6.7 billion at 30 June 2015).
At financial year end, our $7.5 billion portfolio was split into two clear segments: $4.9 billion of cornerstone investments in the Group’s managed Partnerships and $2.6 billion in direct property investments, spread across 29 properties in Australia, the UK and Europe. A large percentage of these are in Sydney, where they play a key role in Goodman’s urban renewal activities.
Satisfying a global customer base
Last year, Goodman continued to meet the demands of a global customer base, with our overall property portfolio boasting occupancy of 96%, like-for-like rental growth of 1.9%, and $357 million in property income from 3.4 million sqm of space leased. Throughout the year, our proven customer offering, geographically diversified operating platform and extensive infrastructure all continued to play key roles in our strongly performing portfolio.
However, we also continued to add value for our global customers by staying focused on the quality of our properties and actively managing assets across our portfolio. We undertook upgrades to existing properties and pursued higher and better use opportunities to realise greater value for our assets. We also selectively disposed of properties where value had been maximised and better value was evident elsewhere.
Our urban renewal activities and gateway city strategy are two examples of where our focus on investing in quality and location were put into practice.
A stronger position
Maintaining our strategy of focusing on areas of urban renewal requires active management. Last year, the total value of the sites we sold and conditionally contracted was $1.6 billion. This activity is now returning capital to Goodman, strengthening our financial position.
We also took advantage of strong asset pricing with $2.2 billion of asset sales activity (excluding urban renewal sites) across the Group and our various Partnerships. This is consistent with our ongoing focus of improving the quality of our property portfolio and its income stream and providing capital to help develop our own new, higher quality properties.