Goodman Quarterly Update
Goodman Group (Goodman or Group) has produced a strong first quarter as it continues to deploy capital through development in key urban locations. The refinement and concentration of our real estate in these markets ensures our customers have access to high-quality facilities close to consumers.
Greg Goodman says, "While the overall consumer market is subdued, online sales continue to grow, reaching 14.1%* of total global retail sales as at June 2019. The online share of the market has almost doubled over the last five years with estimates that it will grow to 22% by 2023.”
Key Highlights this Quarter include;
$48.2 billion total assets under management
3.3% Partnership like for like NPI growth
98% occupancy across the Group and Partnerships
$4.2 billion of development work in progress
$0.9 billion of development commencements with 77% undertaken in Partnerships
Reaffirm forecast FY20 operating earnings per security of 56.3 cents, up 9% on FY19
The deliberate concentration of Goodman’s portfolio in key infill markets is continuing to produce positive results for the Group with rental growth and high occupancy levels in these supply-constrained markets.
Over the last quarter, Goodman have leased 686,132 sqm across the platform equating to $93.5 million of rent p.a. They have achieved like-for-like NPI growth of 3.3%, maintained occupancy at 98% and have a WALE of 4.7 years.
Goodman have continued to expand their development activity, with work in now at $4.2 billion. Their land acquisition strategy supporting the growth is a continuous process that has seen further additions. Redevelopment of existing stabilised assets is also occurring in a number of markets.
The positive performance of the capital partnerships has continued with significant liquidity and low leverage. Overall demand for industrial real estate continues to support sector pricing.
The industry continues to see significant change with customers re-evaluating supply chains and investing in their facilities for the long term. Goodman's global footprint will continue to evolve with customers’ needs to concentrate assets in infill and urban locations.
Goodman's portfolio is benefiting from growth in customer demand, the scarcity of land and available space in most of the markets they invest int and competition from alternate uses.
Those factors continue to manifest in strong rental growth, high occupancy and ongoing development.