AAP Finance

Goodman Group lifts profit 11% to $924m

By AAP Newswire

Consumers want their goods quicker than ever before - a trend that is paying off for Goodman Group, which says its operating profit rose 11.4 per cent to $924 million in the 12 months to June 30.

The warehouse and business park owner said it expected its operating profit to rise a further 10.4 per cent this financial year to $1.0 billion.

It said that as customers were demanding convenience, businesses were being forced to locate their warehouses and logistics centres in major cities, which was where Goodman had focused its assets.

"There's no denying that structural changes are continuing to drive the momentum for improving supply chain efficiency in our customers' businesses," chief executive Greg Goodman said.

"Our customers' requirement for well-located, high-quality industrial real estate continues to grow and we have the specialist management and infrastructure to meet this demand as we continue to incrementally acquire sites in high barrier to entry markets around the world."

Goodman shares closed up 4.4 per cent to $15.50, their biggest move since August 17, 2018.

Goodman said its statutory profit, which includes $872 million in valuation gains, rose 48 per cent to $1.6 billion, with revenue up 13.2 per cent to $3 billion.

One of the largest providers of industrial space in the world, Goodman Group manages 383 properties worth $46.2 billion in 17 different countries, with another 55 projects worth $4.1 billion in development.

Its top customer is Amazon, followed by DHL and transport company Maersk.

Goodman said it was progressing with planning and rezoning sites in Sydney and Melbourne that had the potential for more than 35,000 apartments.

It declared a final distribution of 15 per cents per stapled security, up from 14.25 cents a year ago.

Goodman said its combined interim and final dividend would remain at 30 cents per share this year.

GOODMAN'S GOOD YEAR

* Full-year operating profit up 11.4pct to $942.3m

* Statutory accounting profit 48pct to $1.63b

* Distribution of 15 cents per stapled security, up from 14.25 cents.