Goodman upgrades forecast on solid first half
13 February 2020, Written by David Simmons
Industrial logistics company Goodman Group (ASX: GMG) is positive about the future after posting a $810.6 million statutory profit in 1H20.
The company has upgraded its forecast FY20 EPS growth by 11 per cent to 57.3 cents per security, after reporting $530.4 million in operating profit for the first half of FY20.
The company says its focus on e-commerce has enabled the company to continue growing.
"Goodman produced a solid performance from all segments for the first half of FY20," says CEO Greg Goodman (pictured).
"Our result continues to be driven by our focus on specific markets where e-commerce is growing, consumer expectations are rising and the need for more efficient supply chains is becoming greater."
"We continue to build scale in our target markets, with development work in progress growing to $4.3 billion at the half, and expected to exceed $5 billion."
Of the $1.4 billion in revenue, $213.3 million came as a result of $1 billion spent on acquisitions and developments over the past 18 months.
Greg Goodman says the company is uniquely positioned for the future because of where its assets are located.
"The deliberate concentration of our assets in urban logistics locations is delivering high quality properties for our customers and strong returns for the Group and our Partners," says Greg.
"The combined effect of robust customer demand, scarcity of land and available space, and competition from alternative uses in our chosen markets, is generating strong property conditions."
The company is on track to have total assets under management (AUM) exceeding $50 billion by June 2020, with future AUM growth supported by growing development volumes and revaluations over the coming years.
Shares in GMG are up 5.81 per cent to $16.30 per share at 11.32am AEDT.
Business News Australia
Author: David Simmons