Goodman Group (ASX: GMG) shares are edging lower on Wednesday morning.
At the time of writing, the industrial property giant's shares are down 1.5% to $35.80.
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Why are Goodman shares charging higher?
Investors have been selling the company's shares this morning after the release of its first quarter update.
According to the release, Goodman achieved like-for-like net property income (NPI) growth of 4.9% during the three months ended 30 September.
In addition, it revealed that its portfolio occupancy was 97.4% at the end of the period and its portfolio weighted average lease expiry (WALE) stood at 5 years.
Management notes that it has leased a total of 2.7 million sqm across its platform over the 12-month period to 30 September, equating to $404 million of rental income per annum.
This means that Goodman's total property portfolio is now valued at $78.8 billion. This is up slightly since the end of June when it stood at $78.7 billion.
Work in progress was $12.8 billion at the end of September.
Guidance reaffirmed
Goodman has a habit of giving conservative guidance and then upgrading it as the quarters come and go.
However, that hasn't been the case today, which could be disappointing some investors and putting pressure on Goodman shares.
Instead, management has reaffirmed that it expects its operating earnings per share to grow 9% in FY 2025.
Management commentary
Goodman's CEO, Greg Goodman revealed that demand is moderate but the underlying property fundamentals of its assets remain strong. He said:
Customer demand across our industrial portfolio remains moderate given the impact of lower global growth. However, our customers continue to enhance their supply chains and boost productivity through more efficient and scalable warehousing and distribution solutions. We expect the underlying property fundamentals of our assets to remain strong, supported by low vacancy rates and minimal new supply, as developers of industrial have reduced their activity in the market.
Goodman also notes that data centres are a key focus for the future. He adds:
Our development capabilities and financial capacity position the Group to capitalise on significant opportunities, including orienting the development workbook towards data centres and higher intensity use outcomes, with a number of additional starts expected in calendar 2025. The global demand for data centres has created an opportunity for the Group to service the need for powered infrastructure. We have continued to expand and secure our global power bank to meet this demand, and we've evolved our delivery capabilities to offer a range of options, which now include fully fitted facilities, with operational solutions.
