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Goodman Group shares spike on $924M earnings report

ASX 200
ASX:GMG      MCAP $69.86B
22 August 2019 22:43 (AEDT)

Goodman Group shares have spiked four per cent this morning after the company reported its full-year operating profit had risen almost 12 per cent to $924 million.

It also delivered operating earnings per share (EPS) of 51.6 cents, which is up 10.5 per cent and slightly ahead of its 51.5 cent guidance. Statutory profit was also up 48 per cent to $1628 million.

Goodman’s profits were boosted by a property gain of $3.8 billion across its owned and managed portfolio, which is now worth $46 billion.

A previously forecast full-year distribution of 30 cents per share was re-affirmed for the current financial year, up from 28 cents a year ago.

“Our continued strategic focus on owning, developing and managing high-quality industrial properties for customers in key urban centres is delivering positive results, with operating and statutory profit up significantly,” Chief Executive Greg Goodman said.

“Our development workbook is consequently growing strongly, with work in progress at $4.1 billion and expected to reach around $5 billion in the next 12 months.”

Goodman is a global property group who own, develop and manage industrial real estate in 17 countries. Areas include logistics and industrial areas such as warehouses, facilities and business parks.

For FY20, Goodman is forecasting its operating profit will rise a further 10.4 per cent to reach $1 billion, with operating EPS of 56.3 cents per share, up 9 per cent on FY19.

It is also aiming to keep up with the growing technology and consumer behaviours.

“The evolution of our customer’s supply chains is continuing at pace, as growing consumer expectations and demand, require them to be faster and more agile,” Greg added.

Goodman shares are trading for $15.50 in a $26.93 billion market cap.

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