The Goodman Group (ASX: GMG) share price gained 14.0% in July. That came during a difficult month for many real estate-focused shares, and a month that saw the S&P/ASX 200 Index (ASX: XJO) gain only 0.5%
Like the vast majority of Australian companies, the Goodman Group share price took a heavy hit from the COVID-19 sharemarket selloff in February and March. Goodman shares tumbled more than 42% from 19 February to 19 March.
Then things turned around for the company. The Goodman Group share price rallied strongly from its 19 March low, gaining 75% by the closing bell on 31 July, trading for $16.93 per share.
Year-to-date, the group's share price is up an impressive 33%. At the current share price of $17.98 per share, Goodman has a market cap of 32.9 billion.
What does Goodman Group do?
Goodman Group is an integrated property group with operations throughout Australia, New Zealand, Asia, Europe, the United Kingdom, North America and Brazil.
The group was formed following the merger of Macquarie Goodman Industrial Trust and Macquarie Goodman Management in 2005. Goodman operates 4 divisions: property investment, fund management, property services and property development.
Today, Goodman Group is the largest real estate investment trust (REIT) in Australia, which makes Goodman shares a favourite of listed property enthusiasts. Goodman shares first listed on the ASX on 2 February 2005. The group now takes its place as one of the largest companies on the Australian sharemarket, with total assets under management of $55 billion across 395 properties globally as of March 2020.
Why did the Goodman Group share price leap 14% in July?
While many REITs have struggled with the pandemic shutdowns, the Goodman Group share price had more than recouped all of its February and March losses, and then some, by the end of July.
Much of Goodman's share price success is due to the company's large exposure to industrial properties like warehouses and logistics facilities. The surge in online shopping and delivery services during the pandemic has seen a sharp increase in demand for these facilities. The group counts Amazon.com (NASDAQ: AMZN) as its largest client.
And Goodman Group's future growth outlook is strong, with $4.8 billion of development work underway.
The Goodman Group share price also received a lift in early in July after analysts at Macquarie Group Ltd (ASX: MQG) named it as one of their best buy ideas for the reporting season currently underway.
