The Goodman Group Limited (ASX: GMG) share price is flat at $14.47 today after the industrial property group told investors it's made a strong start to FY 2020.
Goodman still expects operating earnings to climb 9% this financial year to deliver 56 cents in earnings per security for investors. This places it on a frothy 25.7x expected earnings with an unfranked trailing yield of 2%.
As at September 30 2019 Goodman had a total of $48 billion in property assets under management with another $4.2 billion worth of assets under development.
Over fiscal 2019 Goodman delivered an operating profit of $942 million and grew operating earnings 10.5% to 51.6 cents per share.
The group has structural support as demand for industrial property space is rising due to the rise of online shopping at the expense of high-street or CBD shopping.
This trend has created more demand for online fulfilment centres with Amazon's industrial property leases from Goodman a textbook example of this trend.
Goodman also has macro support as falling interest rates boost property prices and crank up the demand for the defensive cash flows and dividends provided by Goodman.
Goodman shares are up 40% over just the past year.
