Goodman Group reaffirms profit guidance as shares soar in 2019

Goodman Group is benefiting as more companies look for industrial property space to meet the demands of online shoppers.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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. 

Motley Fool contributor Tom Richardson owns shares of Dicker Data Limited and Amazon.

You can find Tom on Twitter @tommyr345

The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool recommends and owns Amazon shares. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best-performing ASX 200 shares in March

These shares made their shareholders smile in March thanks to some very big gains.

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Opinions

2 ASX shares I have been buying in 2024!

I’m a believer in the long-term outlook of these stocks.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »