Goodman Operating Profit Rises 17% on Management, Development
Goodman Group (GMG), the world’s second-biggest industrial property manager by assets, reported a 17 percent increase in full-year operating profit as income from its management and development businesses climbed.
Operating profit rose to A$544 million ($496 million) from A$463.4 million a year ago, the Sydney-based company said in a statement to the Australian stock exchange. That beat a median forecast of $542 million in a Bloomberg News survey of 12 analysts.
Goodman, which partners with global pension and sovereign wealth funds to invest in properties, is benefiting from growing demand for logistics and industrial assets from both tenants and investors. Rising freight costs and consumer expectations for shorter delivery times are driving tenant demand for well-located logistics properties, while relatively high yields are behind investor demand, broker Colliers International said in a report last month.
“The quality of our operating earnings and the momentum across our business position us well for FY2014,” Chief Executive Officer Greg Goodman said in today’s statement. “We are forecasting a full year operating profit of $594 million, equating to an operating earnings per security of 34.3 cents, up 6% on FY13.”
Net income in the year ended June 30 fell to A$161 million from A$408.3 million 12 months earlier, the company said.
Goodman will pay a dividend of 19.4 cents for the year, up 8 percent from 12 months earlier, it said.
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