Goodman Group Surpasses Expectations with Strong Q3 Performance

Summary:

Goodman Group (ASX: GMG), a leading integrated property group, has reported robust operational performance for the third quarter of fiscal year 2024 (FY24), setting a solid foundation for the remainder of the year and beyond. The company has upgraded its expected Operating Earnings Per Share (EPS) growth for FY24 to 13%, reflecting its successful asset management strategies and focus on essential infrastructure development for the expanding digital economy.

Key Highlights:

• Operational Excellence: Goodman Group's active asset management has optimized returns for investors, driven by essential infrastructure development for the digital economy.
• Strategic Advancements: The company continues to develop large-scale data centers and expand its global power bank to meet the increasing demand driven by AI usage and cloud computing expansion.
• Management Internalization: Goodman Group has internalized the management of the NZX-listed Goodman Property Trust, fostering growth opportunities.
• Financial Strength: With no drawn debt maturities until late 2025 and significant liquidity, Goodman Group is well-positioned to navigate global real estate market volatility and pursue growth opportunities.

Operational Update:

• Development Progress: As of March 31, 2024, Goodman Group has $12.9 billion of development work in progress across 82 projects, with completed developments totaling $0.8 billion in the quarter.
• Portfolio Performance: The company reports a 4.9% like-for-like net property income (NPI) growth and 98% occupancy across its partnerships, reflecting strong property fundamentals.
• Market Dynamics: While market rental growth has moderated in most regions, Goodman Group maintains an average expected rent reversion to market of approximately +25%, supporting future NPI growth.

Future Outlook:

• Development Strategy: Goodman Group remains focused on delivering large-scale projects in supply-constrained locations, particularly data centers, to optimize returns and meet evolving customer needs.
• Power Bank Expansion: The company is actively expanding its global power bank, with discussions underway for delivery and leasing models that align with customer requirements.

Conclusion:

Goodman Group's exceptional performance in Q3 FY24 underscores its resilience and strategic vision amidst market uncertainties. With a strong financial position and a focus on innovation, the company is well-positioned for sustained growth in the dynamic real estate landscape.

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