How nice it would have been to invest $10,000 in any one of the best ASX 200 stocks of each market sector in FY24!
In this article, we look at what would have happened if you had invested $10,000 in the No. 1 ASX 200 property stock for share price growth in FY24.
What this ASX 200 property stock did in FY24
The No. 1 property stock for share price growth in FY24 was Goodman Group (ASX: GMG).
Goodman is Australia's largest real estate investment trust (REIT). It booked a 73.1% share price gain in FY24. By comparison, the S&P/ASX 200 A-REIT Index (ASX: XPJ) rose 19.9% over the 12 months.
Goodman Group owns a huge global portfolio of property assets worth $80.5 billion.
The company specialises in industrial property, and it's sure catching the enormous artificial intelligence (AI) tailwind these days.
It's doing so by building the data centres needed to make AI work. Data centres account for approximately 40% of Goodman's $12.9 billion construction pipeline at the moment.
In a recent update, Goodman said its strong balance sheet would enable it to continue buying and developing high-tier data centres in desirable locations around the world.
Now, let's do some maths.
If you invested $10,000 at the start of FY24…
Goodman shares closed on 30 June 2023 at $20.07 per share.
If you'd invested $10,000 at that price, you would have ended up with 498 Goodman shares.
Total spend = $9,994.86.
Then this happened.
At the closing bell on 30 June this year, your Goodman shares were worth $34.75 apiece.
So, you would have made $14.68 per share, which, multiplied by 498, gives us a $7,310.64 capital gain.
That's a fantastic investment outcome.
But wait, there's more.
What about dividends?
This ASX 200 property stock also pays dividends.
In FY24, you would have received an unfranked final dividend of 15 cents per share in August 2023 and an unfranked interim dividend of 15 cents per share in February 2024.
This would have added another $149.40 to your total returns for FY24.
Granted, that's not a big dividend yield, but investors don't buy this ASX 200 property stock for income.
Goodman Group is a growth stock, which means the company tends to reinvest much of its earnings in order to get bigger over time.
It does this by acquiring new assets and redeveloping existing assets as trends change (e.g., Goodman is currently repurposing some of its industrial properties into data centres now).
CEO Greg Goodman explains:
Data centres will be a key area of growth and the acceleration of data centre activity is a
catalyst for the Group to consider multiple opportunities to enhance its returns.We continue to assess the Group's capital allocation to both existing and potential opportunities to provide the best risk-adjusted returns.
Key to this will be the active rotation of our capital to fund sustained earnings growth over the
long term.
Thus, Goodman is more focused on delivering growth in earnings per share (EPS) than dividends.
According to CommSec, the consensus forecast among analysts is for this ASX 200 property stock's EPS to grow from $1.074 per share in 2024 to $1.211 per share in 2025 and $1.377 per share in 2026.
