Goodman (ASX:GMG) share price trading higher after quarterly results

The Goodman share price is trading higher today after it released its quarterly report. We take a closer look.

| More on:

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

sdf

The Goodman Group (ASX: GMG) share price is rising today as the company announced an operational update for the first quarter of FY21. Goodman's share price is currently up 2.91% to a price of $19.48.

What Goodman does

Goodman Group is a REIT (real estate investment trust) with operations throughout Australia, New Zealand, Asia, Europe, the United Kingdom, North America and Brazil.

As such the group owns, develops and manages real estate properties. This includes warehouses, large scale logistics facilities, business and office parks globally.

The group was formed following the merger of Macquarie Goodman Industrial Trust and Macquarie Goodman Management in 2005. Goodman operates four divisions: property investment, fund management, property services and property development.

Quarterly update

The company was able to deliver a strong first quarter despite the implications of COVID-19

For the quarter, Goodman reported that it had $51.7 billion total assets under management. The company spoke of the limited supply in markets and how growing demand is reflected in stable occupancy at 97.8%. It also helped drive an increase in net property income of 2.9%.

In terms of development, Goodman reports the strong demand from customers has continued into this quarter, giving the group confidence to further increase its development activity. As such, the company's work in progress metric has risen to $7.3 billion and is expected to increase further throughout the year. Yield on cost has remained stable at 6.7%.

What now for the Goodman share price?

While the pandemic continues to disrupt markets, Goodman has been one of the few REITs to overcome the challenge. Therefore, while the Australian S&P/ASX 200 Real Estate (ASX: XRE) sector has fallen 17% for the year. In contrast, the Goodman share price has gained 36%, outpacing its sector by a huge 53%.

To this end the company has reaffirmed its earnings guidance for the year ahead. Its guidance for FY21 is 62.7 cps, up 9% on the prior year, and a full year distribution of 30cps.

Goodman also notes that it retains a significant cash balance, liquidity and a strong balance sheet. The company continues to retain profits to fund its share of future capital commitments.

Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

A young man wearing glasses writes down his stock picks in his living room.
Opinions

2 amazing ASX shares I wish I'd bought earlier

I think these stocks are performing incredibly well.

Read more »

Person handing out $100 notes, symbolising ex-dividend date.
Share Market News

$20,000 invested in CBA and these ASX 200 shares 5 years ago is worth

Did these shares deliver the goods for investors? Let's find out.

Read more »

a business person checks his mobile phone outside a Wall Street office with an American flag and other business people in the background.
Share Market News

Is the 'sell America' trade back?

Institutional investors appear to be at odds with retail investors.

Read more »

Unsure man analysing data on laptop.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing end to a disappointing week for investors this Friday.

Read more »

Six smiling office colleagues stand in a row and look at the camera.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why ANZ, Clarity, IGO, and Pilbara Minerals shares are dropping today

These shares are ending the week in the red. But why?

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Betr, Centuria Capital, GR Engineering, and Mach7 shares are pushing higher

These shares are having a good finish to the week. But why?

Read more »

woman holding 'hiring' sign in shop
Broker Notes

How much upside does Macquarie tip for Seek shares?

The broker recently reviewed Australian job ad volumes for May.

Read more »