This article is from the Australian Property Journal archive
GOODMAN Group continues to ride the global industrial property boom, securing an additional $359 million in rental revenue as it tries to keep up with customer demand, which is outstripping supply.
In the nine months to March 31, Goodman leased 2,643,085 sqm of space, equating to $359 million of rent p.a. The lion share was in Asia, where it leased 987,013 sqm equating to $176.7 million in net annual rent, followed by Australia/New Zealand (964,946 sqm totalling $131.8 million) and UK/Europe (691,126 sqm totalling $50.1 million).
At the same time, the portfolio achieved like-for-like NPI growth of 3.3% and occupancy was high at 98% with a WALE of 4.7 years.
CEO Greg Goodman said customer demand is outstripping supply for urban logistics globally.
“The structural trends of urbanisation, rising consumerism and the ever-increasing need for convenience, continue unabated -driving demand for industrial property in key urban centres.
“This is leading to consistently high occupancy, steady growth in rents and an increase in development work in progress.
“The scale of these projects is growing over time, given the high-value nature of urban sites, and we are continuing to expand our landbank to secure quality locations for our customers for the long-term,” he added.
Goodman said its focus on infill markets, where demand is strongest, has seen work in progress increase to $3.7 billion on a forecast yield of 7.1%, and it is expected to grow to over $4 billion by June 2019 and $5 billion in FY20.
“We continue to expand our land bank globally in key urban locations. These sites will provide high-quality opportunities for our customers in the future and extend the scale of developments and the pipeline in the medium to long-term.
“High demand combined with lack of supply in most of our markets is giving us confidence to commence more projects on a speculative basis, with occupancy on completion remaining consistently strong,” he continued.
During the period, it started on $2.4 billion worth of developments with 50% pre-committed and 83% developed for partnerships or third parties. Meanwhile development completions of $2.5 billion with 81% leased and 83% developed for partnerships.
Goodman said given the strong outlook for development completions and portfolio returns, he predicts the group’s assets under management will exceed $45 billion at June 2019 with robust growth over the next few years.
Goodman reaffirms forecast FY19 operating earnings per security of 51.1 cents, up 9.5% on FY18, and distribution per security of 30 cents, up 7% on FY18.
Australian Property Journal
