Goodman Financial Results at June 30, 2020 | AUD

Goodman Group (Goodman or Group) today announced its results for the full year ended 30 June 2020.

The Group delivered an operating profit of $1,060.2 million, up 12.5% on FY19, and operating earnings per security (EPS) of 57.5 cents, up 11.4% on FY19. Statutory profit was $1,504.1 million.

The Group’s forecast operating profit for FY21 is $1,165 million, up 9.9% on FY20, and operating EPS of 62.7 cents per security, up 9% on FY20. Forecast full year distribution for the coming year is 30 cents per security.

The events of the last year have resulted in global changes in behaviour including an acceleration of e-commerce adoption, a shift to remote working and a significant increase in the demand for technology and big data. The location and quality of our properties mean that Goodman is well positioned to leverage the opportunities that this new operating environment presents.

This has provided opportunities for the Group with operating earnings in FY20 remaining ahead of guidance. We saw development WIP increase by 59% on last year to $6.5 billion and we expect it to exceed $7 billion in the first half of FY21. This development activity is flowing through to our AUM which increased 12% to $51.6 billion in FY20, including $2.9 billion in revaluation gains. With strong income and capital growth, our Partnerships delivered average returns of 16.6%.

Goodman remains well-capitalised, with available liquidity of $2.8 billion, including $1.8 billion in cash, in addition to the $16.3 billion equity commitments, cash and debt available6 within our Partnerships. Gearing for the Group has also reduced to 7.5% from 9.7% in FY19.

We are seeing increasing customer demand for space in our strategic locations from several industry segments. Logistics and warehousing has provided critical infrastructure enabling distribution of essential goods during the pandemic, while more consumers continue to shift to online shopping.

Earnings from investments are up 14% to $425.2 million as a result of strong like-for-like NPI growth, development completions, acquisitions and increased investment in Partnerships. The Group has invested more than $1.1 billion in its Partnerships over the last two years, including $0.3 billion in FY20. This has predominantly been to fund development opportunities, as well as incremental acquisitions of properties that have redevelopment opportunities over the longer term.

In FY20, the Group has:
- Increased support, both financial and non-financial, through the Goodman Foundation to $13.7 million with a focus on disaster relief, particularly around the Australian bushfires and COVID-19
- Increased our environmental sustainability targets from 100MW to 400MW of solar capacity primarily through solar investments at our properties
- Completed our global climate risk assessment in accordance with TCFD recommendations two years ahead of our target.

These are some of the many initiatives from the Group in this area. A more comprehensive review of our progress will be published as part of our Sustainability Report later in the year.

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