Goodman grabs $2.2 billion in new projects

Goodman Group (ASX: GMG) released an operational update (link saves as PDF) today outlining its progress for the nine months ended 31 March. The property group has seen a significant boost from the growth of e-commerce, pushing its current workbook to $2.2 billion.

“Overall development demand has been strong in all of our markets, particularly in Australia where we have secured a number of large pre-commitments, increasing our development work book to $970 million,” said CEO Greg Goodman in a statement today. “In China, demand continues to run ahead of supply, while in Europe, activity reflects the high customer demand which has been led by e-commerce retailers and the automotive sector. As a result, this provides us with good visibility into our development volumes and growth well into FY2014.”


Source: Goodman Operational Update Presentation

The company has maintained occupancy rates at 96%, and 1.9 million square metres of leased space will pull in around $186 million of rental income annually. As a sign of financial stability during volatile times, Goodman has also managed to pre-commit 71% of projects, and pre-sell 78%.

Looking ahead, the property group will continue to work its way through its 70 current projects, with an average forecast yield on cost of 8.8%. Second-half FY 2013 earnings are expected to mirror the first half’s 16.2 cents, essentially matching previous estimates for full year-earnings of 32.3 cents. Mr. Goodman noted that his company’s diverse global platform, along with continued demand for high quality industrial space, will keep Goodman in a competitive position.

Goodman recently increased its dividend 8% — and it’s not the only one. The Australian Financial Review says “good quality Australian shares that have a long history of paying dividends are a real alternative to a term deposit.” Get “3 Stocks for the Great Dividend Boom” in our special FREE report. Click here now to find out the names, stock symbols, and full research for our three favourite income ideas, all completely free!

More reading

Motley Fool contributor Justin Loiseau has no position in any stocks mentioned in this article. You can follow him on Twitter @TMFJLo.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!