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Goodman's focus Drives Growth

August 24, 2019

 

Goodmans' focus on capturing growth in logistic assets from the urbanisation of major cities around the world continues to pay strong dividends to its investors. The group now manages in excess of $46bn in assets across 13 countries, delivering an impressive growth in operating profit (up 11%) and earnings per security (up 10.5%) on FY18. 

 

Mr Goodman said that "the continued growth in online retailing and the ever-increasing push for quick delivery of goods was driving demand for warehouse space in prime locations in Los Angeles, Sydney, Hong Kong, Germany and France".

 

Key financial metrics for the year include:

  • Operating profit of $942 million, up 11.4% on FY18 

  • Operating earnings per share (EPS) of 51.6 cents, up 10.5% on FY18 (compared to initial guidance of 7%)

  • Gearing at 9.7% (5.1% at FY18)

  • Distribution per security (DPS) of 30.0 cents, up 7% on FY18

  • Statutory profit of $1,628 million (up 48%), includes $872 million valuation gains, contributing to 15% growth in net tangible assets from FY18 to $5.34 per security

Development workbook of $4.1 billion and growing to around $5 billion

  • Building on capability in high barrier to entry markets with 55 projects in 13 countries. Urban focus delivering results

  • Raised and deployed more capital in Partnerships to fund developments

  • Larger, higher value projects with longer time in WIP

Strong performance within the Partnerships reflected in 16% average total returns for the year

  • $3.8 billion of revaluation gains across the Group and Partnerships

  • External assets under management (AUM) up 22% to $43 billion, with total AUM up 21% to $46 billion on FY18

  • Like for like net property income (NPI) growth of 3.3% 

  • Maintained high occupancy at 98%

Significant liquidity and balance sheet capacity maintained

  • Gearing at 9.7%¹ and at the lower end of the target range of 0 – 25%

  • $2.7 billion of available liquidity, $1.6 billion in cash (excludes available liquidity of $13.6 billion in Partnerships)

Outlook

Forecast to deliver FY20 operating profit of $1,040 million (+10.4%) and operating EPS of 56.3 cents (up 9% on FY19). Forecast distribution of 30.0 cents per security. As disclosed in February 2019, distributions will remain at 30 cents per share for FY20, with the payout ratio reducing accordingly.

 

 

GMG Trading Chart vs ASX200 AREIT
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Purple ASX200 AREIT
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