Business Description:
The principal activities of The Goodman Group (GMG) are investment in directly and indirectly held industrial property, fund management, property services and development management. The Consolidated Entity operates in Australia, New Zealand, Asia, Continental Europe and the United Kingdom. GMG is a stapled security comprising a unit in the trust and a share in the management company.

Strategy Analysis:
GMG seeks to build scale for its own, manage, develop capital recycling business model by leveraging its established platforms in Australia, Europe and Asia, focusing on occupiers of and investors in industrial, warehouse and business park property. Future growth will be driven by property development and management earnings from the launch of new funds management products, primarily for large institutional investors, supplemented by occasional corporate acquisitions to further bolster scale. Goodman Group reported NPAT of $392.0m for the year ended 30 June 2011 compared to a loss of $537.0m last year. Revenues from ordinary activities were $929.8m, compared to $173.3m last year. Diluted EPS was (1.8) cents compared to (4.6) cents last year. Net operating cash flow was $294.4m compared to $195.2m last year. The final dividend declared was 2 cents, taking the full year dividend to 3.5 cents compared with 3.4 cents last year. Looking ahead, the growing contribution from the active components of Goodman's business, being its development and management activities, coupled with the strength of its Asian and European businesses will ensure the Consolidated Entity is well positioned to achieve solid earnings growth in the year ending 30 June 2012.