The Goodman Group (ASX: GMG) share price is pushing higher on Friday morning.
At the time of writing, the integrated property company’s shares are up 1.5% to $19.48.
Why is the Goodman share price pushing higher?
Investors have been buying Goodman’s shares following the release of its third quarter operational update.
According to the release, Goodman’s third quarter result reflects a strong operating performance underpinned by customer led demand for its assets in its chosen markets.
However, it does note that changing consumption trends across the physical and digital spaces are fundamentally impacting demand. In response, Goodman is developing new space particularly through multi-storey and higher intensity buildings within its urban locations.
Goodman’s CEO, Greg Goodman, commented: “We have concentrated our portfolio in high barrier to entry markets where land is scarce and use is intensifying. With a focus on long-term customer requirements, we are developing to meet demand in these consumer markets, providing essential real estate infrastructure for our customers.”
“Our results demonstrate resilience and growth in cashflows underpinned by this approach. The convergence of structural change, strong fundamentals and quality investments should continue to deliver positive performance and profitability for Goodman.”
At the end of the period, Goodman had $52.9 billion of total assets under management (AUM). This is up from $51.8 billion at the end of the first half.
Another positive was that its like-for-like net property income (NPI) growth was 3.3% across its managed Partnerships, with a sky high 98% occupancy rate.
Goodman also revealed that it has plenty of work in progress to support future growth. At the end of the period, it had $9.6 billion of development work in progress (WIP).
Also giving the Goodman share price a boost today was management confirming that it is performing in line with full year expectations.
As a result, Goodman is expecting its FY 2021 operating profit to come in at $1.2 billion, representing earnings per share growth of 12% on FY 2020.