Industrial Boom Propels $5bn Development Workbook for Goodman

In a reporting season beset by lower valuations and subdued profits, Goodman Group’s global logistics portfolio has returned a healthy 11.4 per cent increase in operating profit to $942 million.

A $3.8 billion lift in property valuation gains has boosted Goodman’s assets under management to $46 billion, up 21 per cent, while its operating earnings per share increased 10.5 per cent to 51.6 cents.

The group, led by chief executive Greg Goodman, has well and truly made its move on global real estate markets, with 55 projects in 13 countries including China, Japan and the United States.

The group has a $4.1 billion workbook of industrial development under way, which is set to reach $5 billion before the year is out.

“Our continued strategic focus on owning, developing and managing high-quality industrial properties for customers in key urban centres is delivering positive results,” Goodman said.

The group reported 98 per cent occupancy across its portfolio.

Goodman said that the group is continuing to acquire sites in high barrier-to-entry markets around the world.

The group has high geographic exposure to the tightly-held Hong Kong industrial market—18 per cent of the group’s assets— Germany, greater Los Angeles, Auckland and Tokyo.

In Sydney, the group holds 26 assets with a total value of $1.8 billion.

Commenting on the group’s outlook, Goodman referred to structural changes in e-commerce and technology as driving momentum in the supply chain efficiencies of its customers.

“The evolution of our customers’ supply chains is continuing at pace, as growing consumer expectations and demand require them to be faster and more agile,” Goodman said.

Goodman services a customer portfolio that includes Amazon, Deutsche Post, Coles and Maersk, and is forecasting a $1 billion operating profit in the next year—up 10.4 per cent.