• Operating profit up 25%, and Operating EPS up 24%
  • Total AUM of $73 billion, up 26%
  • Portfolio occupancy 98.7%

Goodman Group (ASX: GMG) has announced a 25% increase in operating profit and a 24% increase in its operating earnings per share in the latest full year results.

Group CEO, Greg Goodman, said “Goodman Group delivered a strong result for FY22, reflecting the strong demand for industrial space in our markets.

“Our customers’ need for more productivity and sustainability from their supply chains continues to drive demand. By focusing our portfolio and $13.6 billion development workbook on key infill locations, we have had seen accelerating market rental growth, significant valuation uplift and subsequent outperformance of our Partnerships.

“Assets under management have grown 26% to $73 billion, with an average total return of 21.4%6 for our Partnerships. Capital management activity has continued across the Group and Partnerships, where we raised $1.8 billion in third party equity and completed $8.5 billion of debt refinancings over the year.

“As a result, the Group’s balance sheet remains well positioned with low gearing at 8.5% and $2.8 billion of available liquidity and $18.1 billion available across the Partnerships.”

Operating profit $1.528 billion Up 25.3%
Operating EPS 81.3 cents Up 24%
Statutory profit $3.414 billion Up 47.7%
Gearing 8.50% 6.8% FY21
Look through gearing 19.60%
Available liquidity $2.8 billion
Net tangible assets per security $8.37 Up 25%

Source: Goodman Group.

Assets up more than a quarter

In other highlights, Goodman Group has $73 billion in total assets under management, up 26% on FY21 and achieved $8.5 billion of revaluation gains across the Group and Partnerships.

Portfolio occupancy was 98.7% and like-for-like net property income growth was 3.9%, development work in progress is up 28% on FY21 to $13.6 billion, across 85 projects, with a forecast yield on cost of 6.6%, and the company leased 4.5 million sqm during FY22, equating to $551.9 million of annual rental property income.

“Our focus on key locations and capital management is providing resilience during a period of economic uncertainty and supporting a positive outlook for the business,” said Mr Goodman.

“Goodman is well positioned to continue to adapt to ongoing market volatility and geopolitical tensions. We remain patient and disciplined in our capital allocation to appropriate opportunities.”

“While interest rates and inflation may impact consumers, they continue to seek faster and more flexible delivery. This requires ongoing intensification of warehousing in urban locations to optimise delivery and we’re working closely with our customers to maximise productivity and sustainability in their facilities.

“Demand is currently exceeding supply in our markets, supporting our development-led growth strategyand producing well-located assets for the Group and our Partnerships.

“In addition to strategic site acquisitions, the opportunities for regenerating existing assets support our future development workbook by providing value add opportunities, while reducing our environmental impact. Our production rate, depth of customer demand and strong margins are supporting the outlook for development earnings into FY23.”

“We have made a strong start to FY23 with a significant development workbook underway, continued underlying structural demand from customers, and a robust capital position across the Group and Partnerships.

“We believe the Group is positioned to continue to deliver growth notwithstanding risks associated with current market volatility and we expect FY23 operating EPS growth to be 11%,” he concluded.

The distribution is forecast to remain at 30.0 cents per security for FY23.

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