Here’s why the Goodman Group (ASX: GMG) share price just hit an all-time high

Goodman Group’s stock hit a record high today, and its future might be even brighter.

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Thursday’s been a good day for the Goodman Group (ASX: GMG) share price. It hit a new all-time high for the third day in a row.

In intraday trade today the company’s stock reached a high of $24.96, a 1.1% gain on its previous closing price.

As of Thursday’s close, the Goodman Group share price had dropped slightly to trade at $24.83. Though, that’s still 0.69% higher than it was at the end of Wednesday’s session.

For context, the S&P/ASX 200 Index (ASX: XJO) fell 0.1% today.

Let’s take a look at what’s been going on with the industrial property-focused real estate investment trust (REIT).

Goodman Group share price is on a roll

The Goodman Group share price has broken its record high every day since Monday. Meanwhile, global accounting and professional services firm, BDO in Australia, released the results of its 27th Annual Survey of Australian REITs.

It found Goodman Group to be the third best performing Australian REIT for financial year 2021 (FY21). The report stated:

Goodman Group places a focus on being innovative and agile within the typically stable REIT sector. [Over FY21] they maintained a strong position to capitalise on growing e-commerce trends by having a portfolio occupancy of 98.%. The industrial sector has a relatively high barrier to entry, and high occupancy rates combined with growing rental yields placed Goodman Group in good stead to take advantage of robust demand.

Additionally, BDO found that the REIT sector beat the performance of the ASX 200 by a whopping 7.1% over FY21.

And the best performers of the sector for FY21 were industrial REIT share prices, like that of Goodman Group. They were found to have outperformed their FY20 movements by an average of 41.4% during FY21.

Whereas the share prices of office-focused REITs outperformed by 16.4% on average.

BDO in Australia Australian REIT specialist and corporate finance partner, Sebastian Stevens commented on the findings:

The industrial sector was the big [Australian REIT] winner this year because of the acceleration of online retail which fuelled demand for warehouses and logistics facilities… The future is bright for the industrial sector too, as businesses begin to bring manufacturing back onshore after serious challenges with supply chain squeeze and high freight costs.

The company’s seemingly on the same page as BDO. It recently upgraded its operating earnings per share guidance for FY22 to be more than 15%. Previously, it was estimated that figure would be around 10%.

The Goodman Group share price has increased 28% since the start of 2021. It has also gained 5.5% over the last 30 days.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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