A Quick Look At Goodman Group’s Operational Update

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On November 8, 2018, Goodman Group (ASX: GMG) came forward and made an announcement regarding the operational update. As per the management of the company, the positive momentum was witnessed in the operational performance in the September quarter. This momentum got helped by the robust customer demand in regard to the urban locations across the world as well as because of the tight supply with respect to the market it operates in. The strong demand for high-quality industrial facilities with respect to the key urban centers is being well-supported by the customers’ decision to raise the deployments towards improving the supply chains. The company’s management also stated that it has been helped by the favorable structural as well as macro trends because of the quality as well as the location of the portfolio.  

At the end of September quarter, the company’s total assets under management or AUM clocked at $39.6 billion. The management stated that the company’s portfolio has been located where their customers require and, hence, it has helped in witnessing an increase in the occupancy, rental growth, elevated valuations as well as robust demand for the fresh products. The company has acted upon its strategy to deploy as well as develop in the quality locations in regard to major urban centers which has helped the customers from the supply chain perspective.

The company’s AUM in partnerships stood at $36.6 billion and was aided by the strong revaluation gains, exchange rates as well as development completions & net acquisitions. The robust performance with respect to the partnerships has positively impacted the assets under management or AUM in the September quarter. The partnership performance was helped because of the underlying property fundamentals and ongoing performance fees. The development commencements stood at $0.9 billion in the September quarter with 72% pre-committed. However, 86% has been developed with respect to third parties or partnerships.

The development completions stood at $1.0 billion in the September quarter with 67% pre-committed. Moreover, 76% has been developed for third parties or partnerships. The company’s management is of the view that it has been facing strong environment because of a rise in the customer demand coupled with lower land availability as well as competition from the alternate uses. The management of the company believes that it has commenced FY 2019 on a strong note and they have also reaffirmed FY 2019 operating earnings per security which was 50.0 cents. This reflects the YoY growth of 7%. The company has an optimistic outlook for the future growth which could help in gaining the attention of the market participants. The stock price on November 8, 2018 of Goodman Group has witnessed favorable momentum and ended on the positive note.

The Goodman Group ended the session at A$10.400 per share which reflects that it has witnessed the rise of A$0.220 per share or 2.161%. The stock price is presently trading in the higher zone, and it has an annual dividend yield of 2.75%.


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