The Goodman Group (ASX: GMG) share price is on the move on Monday morning.
At the time of writing, the industrial property company’s shares are up over 3% to $20.35.
Why is the Goodman share price charging higher?
Investors have been bidding the Goodman share price higher on Monday for a couple of reasons.
The first is a rebound on the ASX 200 following a strong night of trade on Wall Street on Friday. This has seen the local market open meaningfully higher this morning.
Also giving the Goodman share price a boost today was the release of the company’s third quarter trading update.
According to the release, the company has maintained a strong operating performance in the third quarter. Tight supply and demand continue to support leasing across its portfolio and developments, with high occupancy in its markets.
Goodman highlights that its customers continue to intensify warehousing in urban locations and increase automation and technology to optimise delivery and improve supply chain efficiency.
All in all, this has underpinned a 3.7% increase in like-for-like net property income and a 98.7% occupancy rate.
At the end of the period, Goodman had assets under management of $68.7 billion and work in progress of $13.4 billion across 89 projects.
Perhaps the biggest boost to the Goodman share price has come from management’s guidance for FY 2022.
Goodman has upgraded its guidance again and now expects to deliver earnings per share growth of 23% in FY 2022. This is up from its previously upgraded guidance of 20% growth. It also revealed that it expects to pay a 30 cents per share distribution this year.
Goodman’s CEO, Greg Goodman, commented:
Goodman has had another strong quarter with our operating results reflecting the highly targeted location of our portfolio. This has continued to produce high occupancy, cashflows, and development activity.
The business environment is changing, with increased interest rates, inflation, geopolitical risks and the ongoing impacts of the pandemic, however, the long-term structural drivers of demand have not changed.