Goodman upgrades forecast on solid first half

Goodman upgrades forecast on solid first half

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.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

New report reveals 68 per cent of businesses are vulnerable to a cybersecurity attack

Partner Content
36 per cent of employees fear their organisation is at risk of financial losse...
SAI Global
Advertisement

Related Stories

Smartgroup shares plunge as suitor lowers takeover offer

Smartgroup shares plunge as suitor lowers takeover offer

Shares in Smartgroup (ASX: SIQ) have fallen back to where they were...

APA gets look in at AusNet for $9.96 billion takeover offer

APA gets look in at AusNet for $9.96 billion takeover offer

AusNet Services (ASX: AST) has today granted due diligence access t...

Victorian retail to reopen a week earlier, milestone set for scrapping masks and capacity limits

Victorian retail to reopen a week earlier, milestone set for scrapping masks and capacity limits

With Victoria poised to hit its 80 per cent double dose vaccination...

Go1 founders win Brisbane Young Entrepreneur of the Year Award after decade-long wait

Go1 founders win Brisbane Young Entrepreneur of the Year Award after decade-long wait

After their business became a unicorn amidst the ongoing expansion ...