Goodman share price hits record high on second FY24 guidance upgrade

Business is booming for this market darling in FY 2024.

| More on:
Three smiling corporate people examine a model of a new building complex.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Goodman Group (ASX: GMG) share price is scaling new heights on Wednesday.

In early trade, the industrial property company's shares rose 1.5% to a new record high of $34.90.

Why is the Goodman share price rising?

Investors have been buying the company's shares this morning following the release of its third-quarter update.

According to the release, Goodman delivered a strong operating performance for three months, which management believes positions the business well for the full year and into FY 2025.

In fact, trading was so strong that the company has upgraded its guidance for FY 2024 for a second time.

Initially, Goodman was targeting operating earnings per share growth of 9% this year. It then upgraded this to 11% growth when it released its half-year results in February.

Management now expects operating earnings per share growth of 13% in FY 2024. This is being underpinned by a portfolio occupancy rate of 98% and 12-month rolling like-for-like net property income growth of 4.9%.

Management commentary

Goodman's CEO, Greg Goodman, was pleased with the quarter. He said:

Our active asset management continues to optimise returns for our investors as we deliver essential infrastructure for the expanding digital economy. The location and quality of our properties enables increased productivity, driving demand as our logistics customers are seeking to improve their supply chain efficiency using automation and offering faster transit times. We continue to develop large-scale, high value, data centres, and expand our global power bank to address growing data centre demand as AI usage and cloud computing expands.

During the quarter we internalised the management of the NZX-listed Goodman Property Trust providing a platform for growth for GMT. We continue to review our assets and capital allocation globally, and expect further recycling of capital over time.


Speaking about the company's outlook, Goodman acknowledges that real estate markets will be volatile but believes it is well placed to navigate this. He adds:

The Group continues to execute on its strategy. The challenge of the uncertain interest rate environment, persistent inflation, combined with slowing economic growth, is prolonging volatility in global markets and increased cost of capital.

In the near term we believe aggregate logistics demand is likely to remain at more moderate levels compared to that experienced in the pandemic period. However, supply has been significantly reduced globally, and is generally very constrained in our markets. Our customers remain focused on maximising productivity from their space, preferring infill locations and increasing their investments in technology and automation. Combined with the scarcity of available assets in the markets we operate, should support rental growth and high occupancy.

At the end of the quarter, Goodman had $12.9 billion of development work in progress across 82 projects.

The Goodman share price is up 72% over the last 12 months.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Record Highs

A smiling man at a shop counter takes payment from a female customer, with racks of plants in the background.
Record Highs

New record high: Is it too late to buy Wesfarmers shares?

Would I buy Wesfarmers shares at their new record high?

Read more »

Lab worker puts hands in the air and dances around
Healthcare Shares

Up 200% in 6 months, guess which ASX All Ords stock just hit another all-time high

This All Ords stock has made its investors very rich in recent months...

Read more »

happy investor, celebrating investor, good news, share price rise, up, increase
Capital Raising

Nick Scali share price jumps 14% to record high after raising $46m

Investors have responded very positively to the company's UK expansion plan.

Read more »

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Technology Shares

Why is the Life360 share price rocketing 22% to a record high?

Records have been broken by this tech stock today.

Read more »

Man raising both his arms in the air with a piggy bank on his lap, symbolising a record high.
Record Highs

Happy Easter: ASX 200 hits another new record high

It's been a happy start to April for ASX 200 shares.

Read more »

A smiling woman puts fuel into her car at a petrol pump.
Energy Shares

How has this ASX 200 energy stock just hit another new record high?

This energy stock can't stop clocking new highs.

Read more »

ETF spelt out with a rising green arrow.

4 top ASX exchange-traded funds smashing record highs on Wednesday

If you own any of these popular ETFs, congratulations!

Read more »

a man in a business suite throws his arms open wide above his head and raises his face with his mouth open in celebration in front of a background of an illuminated board tracking stock market movements.
Record Highs

ASX 200 soars to another new all-time high on Friday!

Exuberant investors just sent the ASX 200 to another new all-time high.

Read more »