Goodman Group delivers operating profit of $1.78 billion

17 August 2023

Goodman Group (ASX:GMG) released statutory profit of $1.78 billion, an increase of 17% from FY22, underpinned by strong rental growth of warehouses and industrial property due to ecommerce.

Goodman reported that property occupancy was at 99% at the end of the financial year, with net property income growth at 4.7% over the year.

Greg Goodman, Group CEO, said: “Goodman Group has continued to perform strongly in FY23 with the quality and location of our sites underpinning rental growth, property values and development activity. Despite the macro uncertainty, structural drivers remain sound, driven by the digital economy, the need for more efficient and sustainable assets, and limited supply in our markets.

“These locations are also providing value-add opportunities, as we see increased competition for industrial sites from other uses such as data centres and potential residential rezoning. Significant growth in data storage and AI in particular, is driving data centre demand which is now approximately 30% of our $13 billion development workbook, and importantly we have a pipeline of over 3GW which has significant value over time.

“Asset under management have grown 11% to $81 billion, driven primarily by $6.9 billion in development completions, in addition to acquisitions and revaluations across the Group and Partnerships. Combined these contributed to 9% growth in NTA.

“Capital management discipline saw the Group maintain a strong balance sheet that previous flexibility to take advantage of opportunities. We raised $1 billion of new equity commitments in Partnerships and completed $6.4 billion of debt refinancing across the Group and Partnerships. The Group’s gearing remains low at 8.3% while having $3.1 billion of available liquidity, which provides financial flexibility. There is also significant liquidity of $17.6 billion in the Partnerships.”

The Group forecast distribution for FY24 at 30 cents per unit.