Goodman Group to focus on development in US, Brazil
For the half year to December 31, the group reported an operating profit of $266 million, up 16 per cent on the previous year and in line with analyst estimates.
After property revaluations in the UK business the statutory profit came in at $155 million.
Goodman declared an interim distribution of 9.7¢, up 8 per cent on the previous corresponding period, while earnings per security were 16.2¢, up 6 per cent.
Chief executive Greg Goodman said with $21 billion of assets under management and $2 billion of work in progress, including $618 million in Australia, full-year earnings guidance was 32.2¢ per security, up 6 per cent on the 2012 year.
Mr Goodman said the group's model of development and investments through joint venture projects had seen it generate a diversity of earnings in the first half. During the past six months Goodman has entered into a joint venture agreement in Brazil through the WT Goodman fund, which has an initial four development sites with a forecast completion value of $US1.1 billion.
It also consolidated its Japanese and Chinese funds management platform, while $1.8 billion of new committed third-party equity was raised with global property investment groups, with a further $1 billion under negotiation.
"We are confident that with our Australian operations performing well with the rise in e-tailing, and the overseas projects coming to fruition, the 2014 year is looking good," Mr Goodman said.
"The structural change occurring across the sector from the evolution of e-commerce, greater supply-chain efficiencies and through consolidation continues to present Goodman with significant long-term opportunities."
Mr Goodman said while the UK business was flat, there could be a turnaround in the next year.
Deutsche Bank analysts said taking into account contributions from the US and Brazil and the likely commencement of Goodman's two Tokyo development opportunities over 2103, work in progress was expected to reach about $2.6 billion by the end of the 2014 financial year.
Mr Goodman told analysts at a briefing that, based on investor appetite, the company would look at a "menu" of capital raising initiatives.
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Goodman Group said it will focus on developing its new territories in the US and Brazil while boosting its joint venture funds, targeting growth through development projects and fund partnerships in those markets.
For the half-year to December 31, Goodman reported an operating profit of $266 million, up 16% on the prior year and in line with analyst estimates; after UK property revaluations the statutory profit was $155 million.
Goodman declared an interim distribution of 9.7¢, up 8% year-on-year, and earnings per security of 16.2¢, up 6%. The group provided full-year earnings guidance of 32.2¢ per security, a 6% increase on the 2012 year.
Goodman has $21 billion of assets under management and about $2 billion of work in progress (including $618 million in Australia). Deutsche Bank analysts expected work in progress to rise to around $2.6 billion by the end of the 2014 financial year when contributions from the US, Brazil and Tokyo projects are included.
Goodman entered a joint venture in Brazil through the WT Goodman fund, which initially includes four development sites with a forecast completion value of US$1.1 billion.
Goodman consolidated its Japanese and Chinese funds management platform and raised $1.8 billion of new committed third‑party equity with global property investment groups, with a further $1 billion under negotiation.
Goodman says the structural change from growing e‑commerce and e‑tailing, plus greater supply‑chain efficiencies and sector consolidation, is creating significant long‑term development and investment opportunities for its industrial property business.
Goodman described its UK business as flat but said there could be a turnaround next year. Management also told analysts it would consider a 'menu' of capital raising initiatives based on investor appetite.
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