Live markets, Thursday August 12, 2021
Goodman Group, Australia’s largest industrial developer and a global real estate player, has reported a statutory profit of $ 2.31 billion as it rushes to build more hangars for e-commerce customers and logistics.
Growing demand for storage space in the face of disruption from the global pandemic has seen the occupancy of Goodman’s hangars, which stretch from Australia to Europe and Asia, peak at 98, 1%, with comparable net corporate real estate income. their rental growth of 3.2 percent.
The industrial gorilla’s annual statutory profit included significant real estate revaluation gains of $ 5.8 billion across its portfolio, while its assets under management jumped 12% from a year earlier to reach $ 57.9 billion.
Real estate trusts calculate returns to security holders from operating profits rather than statutory profits to exclude lump sum revaluation gains.
On that measure, Goodman’s operating income was $ 1.219 billion, up 15% from fiscal 2020, allowing it to pay a distribution of 30 cents per stapled title.
“Long-term structural trends are well established and translate into increased use of space and customer demand,” said Goodman boss Greg Goodman.
“Customer demand in our markets is also reflected in high occupancy, rental growth and strong returns on investment which are expected to see assets under management exceed $ 65 billion. “
Goodman is building more hangars at a faster rate to meet demand.
“The Group is well positioned to maintain approximately $ 10 billion of work in progress throughout FY22, with multi-story developments remaining a significant contributor,” he said.
The group forecasts an operating profit per share of 72.2c for the 2022 financial year, up 10% compared to the previous year.
Its forecast distribution for the coming year will remain at 30c per title.
Mr Goodman said the developer has achieved carbon neutrality in all of its global operations, dramatically increased the use of renewable energy globally, and established a framework to measure embedded carbon with the aim of moving towards carbon neutral developments.
Shares of the $ 43 billion company closed at $ 23.16 on Wednesday and are up 22.5% so far in 2021, trading near their 13-year highs.