Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Goodman Operating Profit Jumps on Rise in Development, Funds

Feb. 21 (Bloomberg) -- Goodman Group, Australia’s biggest industrial property trust, said first-half operating profit rose 16 percent as fees gained and development revenue improved. The stock rose the most in two weeks.

Operating income climbed to A$265.7 million ($272 million) in the six months ended Dec. 31, compared with A$229.2 million a year earlier, the Sydney-based company said in a statement to the Australian stock exchange. Net income fell 23 percent to A$154.6 million on a decline in property valuations and one-time charges.

The shares rose 1.1 percent to A$4.60 at the close of trading in Sydney, its biggest one-day gain since Feb. 8. Goodman will pay a dividend of 9.7 Australian cents for the six months, it said. The company forecast full-year operating earnings of 32.3 cents a share, up 6 percent from the previous year.

“The significant activity in our development business is being driven by the under-supply of prime quality industrial space and a number of structural changes taking place globally,” Chief Executive Officer Greg Goodman said in the statement. “The growing contribution from our international operations, and our active development and management businesses, highlights the significant advantage of our global platform.”

Goodman, which is seeking to expand its international operations, announced in November a Brazilian logistics partnership with Sao Paulo-based WTorre Properties SA, and in August said it had formed a joint venture with the Canada Pension Plan Investment Board to develop and buy warehouses in North America. The developer will continue to expand at home, with plans to begin A$451 million of warehouse and office investments, the company said this month.

Goodman Group had A$21 billion in funds under management as of Dec. 31, a 10 percent gain on the same period a year earlier. The company plans to increase that by as much as A$3 billion in the next year, Goodman said in a telephone interview today. Goodman is also seeking to raise as much as A$1 billion for transactions in Europe, Asia and Australia, he said.

To contact the reporter on this story: Nichola Saminather in Sydney at nsaminather1@bloomberg.net

To contact the editor responsible for this story: Andreea Papuc at apapuc1@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.