This article is from the Australian Property Journal archive
GLOBAL industrial property player Goodman Group continues to go from strength to strength, recording a FY2016 operating profit of $715 million, an increase of 9% from last year.
The statutory profit was $1,275 million including intangible valuations of $810 million. Goodman announced operating earnings per security (EPS) of 40.1 cents, up 7.8% on FY15 and the group declared distribution of 24.0 cents per stapled security, up 8%.
Total assets under management of $34.1 billion, up 13% on FY15.
CEO Greg Goodman said the result reflects the execution of the group’s business strategy to capitalise on the demand for modern, high quality logistics space in key gateway cities globally.
“We continue to focus on improving the quality of our properties and income, capitalising on the strong demand for modern, well located logistics space. This is being underpinned by a number of significant themes transforming the industrial sector globally, including the growth in consumerism, the urbanisation of our cities and the evolution of e-commerce.
“With e-retailers expanding their networks and seeking to optimise delivery solutions; logistics markets changing and evolving in and around gateway cities; and customers’ focus on increasing operational and supply chain efficiencies through technology and distribution platforms, our strategy remains focused on quality and location, while leveraging these opportunities.
“We expect these themes to be key drivers of Goodman’s earnings and with our through-the-cycle planning approach, have positioned our business to realise the opportunities being provided. This will continue to create significant value for all of our stakeholders and underpin the robust, high quality business we are building for the long term,” he added.
In addition to the strong industrial portfolio, Goodman said the urban renewal strategy is progressing ahead of expectations, a total of $2.1 billion of sites sold and conditionally contracted, with $0.8 billion settled in FY16, , with a further $1.0 billion of settlements to occur in FY17.
Investments contributed operating EBIT of $407 million, a 3% increase compared with last year. Sound underlying property fundamentals over the full year period resulted in 3.4 million sqm of space successfully leased across Goodman’s quality portfolio of 412 properties globally. Like for like rental growth was 1.9% and new leasing deals had positive lease reversions of 3.0%.
Overall occupancy was maintained at 96%, with a 79% retention rate. The weighted average lease expiry across the investment portfolio was 4.7 years as at 30 June.
Developments contributed operating EBIT of $366 million, a 43% increase compared with last year. Management contributed operating EBIT of $166 million, a 33% increase compared with last year.
Goodman has forecast a forecast full year FY17 operating earnings per security of 42.5 cents, up 6% on FY16, with forecast FY17 distributions of 25.4 cents, up 6% on FY16.
Australian Property Journal
