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  • As the industrial sector flourishes with an increase in online shopping and demand for space, Goodman (GMG) reports a statutory profit of $2.3 billion
  • The group also enjoyed a 15 per cent increase in operating profit to $1.22 billion, while operating earnings per security were ahead of initial guidance
  • Assets under management rose 12 percent to $57.9 billion in FY21
  • The portfolio is benefiting from development, a $5.8 billion revaluation rise and a 98.1 per cent occupancy rate
  • Shares in Goodman have pulled back 2.37 per cent, sitting at $22.61 at 3:00 pm AEST

Goodman Group (GMG) has posted a statutory profit of $2.3 billion as the industrial market booms with an increase in online shopping and demand for space.

The group also enjoyed a 15 per cent increase in operating profit to $1.22 billion, while operating earnings per security were ahead of initial guidance of nine per cent, sitting at 65.6 cents, up 14.1 per cent.

Goodman Group CEO Greg Goodman said the company made significant progress on its environmental, social and corporate governance initiatives, including achieving carbon netruality four years ahead to its target.

“Our disciplined focus on location, the continued demand in online shopping, and the rise of the digital economy, has seen the group deliver continued strong performance in FY21,” he said.

“In addition, robust underlying property fundamentals and investor demand has supported significant growth in revaluations of $5.8 billion across the group and Partnerships, contributing to the 14 per cent growth in Goodman’s net tangible assets driving statutory profit to $2.3 billion.”

Long-term structural patterns have been established in the sector, leading to increased space utilisation and consumer demand, the group said.

As a result, it has increased its work in progress to $10.6 billion by June 2021, while its partnership platform, where total assets under management rose 12 percent to $57.9 billion in FY21.

The firm reported a high level of pre-commitment of 70 per cent with a 14-year weighted average lease expiry, which is encouraging. It further said that 96 per cent of projects completed in FY21 were leased.

The platform is benefiting from development, a $5.8 billion revaluation rise and a 98.1 per cent occupancy rate.

Goodman posted $1.9 billion in available liquidity, including $0.9 billion in cash, and gearing of 6.8 per cent.

“After a robust year in FY21, we expect the current levels of development activity to be sustained over the coming year,” Mr Goodman said.

“The group is well positioned to maintain WIP of around $10 billion throughout FY22, with multi-storey developments remaining a meaningful contributor.

“Customer demand in our markets is also translating into high occupancy, rental growth and strong investment returns which should see AUM grow to in excess of $65 billion and support the performance of our management business.

“As a result, the Group expects to deliver FY22 operating EPS of 72.2 cents — up 10 per cent on FY21. Forecast distribution for FY22 will remain at 30.0 cents per security.”

Shares in Goodman have pulled back 2.37 per cent, sitting at $22.61 at 3:00 pm AEST.

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