The Goodman Group (ASX: GMG) share price is having a tough time on Wednesday.
In morning trade, the industrial property company's shares are down over 3% to $17.05.
Why is the Goodman share price falling?
Investors have been selling down the Goodman share price today following the release of the company's first quarter update.
Given Goodman's tendency to under-promise and over-deliver, the market appears disappointed that management has only reiterated its guidance for FY 2023. Though, given the volatile economic environment, this is arguably a good outcome for investors.
How is Goodman performing?
According to the release, for the three months ended 30 September, Goodman reported a 4% increase in like-for-like net property income (NPI) growth on properties in its partnerships.
It also reported 99% occupancy across its partnerships and 100% occupancy on completed development projects. The latter bodes well for the $13.8 billion of development work in progress across 85 projects.
The company advised that this strong operational result, despite the volatile economic environment, was supported by the long-term structural drivers of demand for well-located industrial real estate.
Pleasingly, these drivers remain intact today. In light of this, management has reiterated its operating earnings per share guidance of 11% growth to 90.3 cents.
Though, management warned that it remains cautious and patient given market volatility, geopolitical risks, and a slowing global economy. However, it maintains a strong balance sheet and is able to adapt to changing market conditions and take advantage of growth opportunities.
Goodman's CEO, Greg Goodman, commented:
The Group's solid operational performance this quarter is a result of the consistent execution of our strategy to deliver high quality sustainable properties in strategic locations around the world. We are in a strong position to withstand and respond to the impacts of a slowing economy in different parts of the world. This is due to the demand for our strategic locations, quality of our assets, strength of our development book, growth in cash flows, and our low leverage and strong capital position.