- Property manager Goodman Group (GMG) claims it is in a “sound” position as COVID-19 continues to spread
- The virus has brought about a surge in demand for food and other staples product — meaning sellers in these sectors are after more supply options
- As such, Goodman said it has seen increased demand for supply space from customers in the staples and logistics sectors
- As such, the company has reaffirmed its 2020 earnings guidance
- At the end of March 2020, Goodman Group had $51.3 billion in assets under management
- Shares in the company gained almost four per cent today to close worth $14.11 each
Industrial property manager Goodman Group (GMG) is continuing its climb out of the COVID-19 rut with an encouraging operational update today.
The company said it is in a “sound” position as the virus rages on, with a surge in demand from customers in the food, consumers good, and logistics sectors supporting business in an unprecedented economic era.
With defensive stocks like supermarkets and other staples traders experiencing huge bumps to demand from the COVID-19 crisis, new supply options are in high-demand, too.
This, combined with continued growth in online stores, means Goodman’s work-in-progress (WIP) assets grew to $4.8 billion at the end of March 2020.
Importantly, Goodman Group has reaffirmed its 2020 financial year earnings guidance of 57.3 per cent per share and its distribution guidance of 30 per cent per share.
Goodman Group CEO Greg Goodman said the company is providing a necessary service to customers over the COVID-19 mayhem.
“Alongside our customers and the logistics and warehousing sector globally, we are playing an important role in delivering essential infrastructure and enabling distribution of critical supplies,” Greg said.
“We are also working on a one-on-one basis with our customers who are genuinely suffering financial distress as a direct result of COVID-19,” he added.
The property giant touted some impressive figures for the nine months of the 2020 financial year so far, with $55.1 billion in assets under management and an occupancy rate of 97.5 per cent at the end of March.
Looking ahead, on top of the reaffirmed earnings-per-share guidance, Goodman Group is predicting its WIP developments to be worth more than $5 billion by June 2020.
The company’s shares could not escape the COVID-19 rot, losing almost 42 per cent of their value by mid-March after a February peak of $16.62. However, since falling below $10 each on March 19, GMG shares have increased in value by over 45 per cent.
Today, shares in Goodman Group closed 3.75 per cent green at $14.11 each.