Why is the Goodman share price pushing higher today?

Goodman continues to expect solid earnings growth in FY 2024.

| More on:
Smiling man working on his laptop.

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

The Goodman Group (ASX: GMG) share price is on the move on Monday morning.

At the time of writing, the industrial property giant's shares are up 1% to $22.27.

Why is the Goodman share price rising?

Investors have been bidding the company's shares higher today in response to the release of its first-quarter update.

For the three months ended 30 September, Goodman reported the following:

  • 9% like-for-like net property income (NPI) growth on properties in its partnerships
  • 99% occupancy across partnerships
  • $1 billion of developments completed in the quarter
  • $12.7 billion of development work in progress (WIP) across 80 projects
  • 25% of WIP relates to data centres
  • $82.9 billion of assets under management

What happened during the quarter?

Goodman advised that its NPI growth during the period was driven by underlying structural drivers within the digital economy which continue to support property fundamentals across its portfolio.

While market rental growth has slowed in most markets, Goodman advised that the average expected rent reversion to market across the global portfolio remains consistent with prior periods.

North America is 64%, Australia and New Zealand is 37%, Continental Europe and the UK is 17%, and Asia is 0.3%. This embedded rent reversion is expected to support NPI growth in future periods and management continues to expect upside in the market rents beyond current levels.

Goodman acknowledges that the recent increase in long-term interest rates is having a short-term impact on capital cost and availability which could negatively impact property values. However, this will not have a material impact on FY 2024 operating profit. It also highlights that it could present opportunities for the company given the strength of its capital position.

Outlook

Goodman's CEO, Greg Goodman, remains cautiously optimistic on the future. He said:

While global markets remain uncertain, the structural trends of the digital economy remain intact. As the cost of doing business in an inflationary environment increases, our customers continue to focus on maximising productivity from their space. They're looking for sustainable properties that are close to consumers and optimised for their investments in automation and technology. This continues to support development activity and our portfolio of high-quality, strategically located assets around the world, which have almost zero vacancy.

The continued and significant growth in data requirements, driven primarily by AI and cloud computing, is creating strong demand for our powered sites. Goodman has created a significant opportunity over the past decade to participate in this growing and essential segment of the market.

Goodman confirmed its previous guidance for FY 2024 operating earnings per share growth of 9% and a full-year distribution of 30 cents per share.

Should you invest $1,000 in Goodman Group right now?

Before you buy Goodman Group shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Goodman Group wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Industrials Shares

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
Dividend Investing

Top broker forecasts this quality ASX 200 dividend share could surge 45%!

A leading broker forecasts outsized gains ahead for this high-yielding ASX 200 dividend stock.

Read more »

Australian notes and coins symbolising dividends.
Industrials Shares

ASX 200 dividend stock reveals next quarterly passive income payout

The ASX 200 dividend stock announced its quarterly results and latest passive income payout.

Read more »

Senior man wearing glasses and a leather jacket works on his laptop in a cafe.
Industrials Shares

A top broker says this ASX 300 share could deliver a 21% return

This business could deliver tasty returns according to one expert…

Read more »

A plumber gives the thumbs up
Industrials Shares

How will Reece navigate Trump's tariffs according to Macquarie?

This ASX industrials company could be uniquely positioned in an uncertain market. 

Read more »

A man reacts with surprise when her see a bargain price on his phone.
Industrials Shares

Why this fund manager likes this beaten-up ASX 200 share

Investors could build good returns with this stock.

Read more »

Young man collecting water leakage in bucket while calling plumber on smartphone.
Industrials Shares

At a 5-year low, is this ASX industrials stock bargain of the year?

With so many ASX stocks in the red, is this industrial stock a buy low candidate?

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

Guess which ASX All Ords stock just rocketed 14% on BIG leadership news

Investors just sent this ASX All Ords stock surging by 14%. But why?

Read more »

US navy ship sailing along at sunset.
Industrials Shares

Up 89% in a year, why this ASX All Ords defence stock could keep rocketing in 2025

A leading broker expects more outperformance from this fast-rising ASX All Ords defence company.

Read more »