Goodman Group lifts operating profit 9.3pc

Property giant Goodman Group posted a rise in operating profit as it met earnings per share expectations.

Goodman Group CEO Greg Goodman. Pic: Sam Mooy

Commercial and industrial property giant Goodman Group has posted a 9.3 per cent rise in operating profit as it met earnings per share expectations.

For the year to June 30, Goodman (GMG) reported a 9.3 per cent advance in operating profit to $715 million, while its operating earnings per share lifted 7.8 per cent to 40.1 cents.

The EPS result matched forecasts outlined by Goodman in February, which pointed to a result of 40c a share.

The figures came on a 24.9 per cent rise in revenue to $2.94 billion, with statutory profit climbing 5.5 per cent to $1.27bn on robust property revaluations.

Goodman chief executive Greg Goodman said the growth in e-commerce was supporting the steady growth of the business.

“We continue to focus on improving the quality of our properties and income, capitalising on the strong demand for modern, well-located logistics space,” he said.

“This is being underpinned by a number of significant themes transforming the industrial sector globally, including the growth in consumerism, the urbanisation of our cities and the evolution of e-commerce.

“With e-retailers expanding their networks and seeking to optimise delivery solutions; logistics markets changing and evolving in and around gateway cities; and customers’ focus on increasing operational and supply chain efficiencies through technology and distribution platforms, our strategy remains focused on quality and location, while leveraging these opportunities.”

Goodman anticipates a 6 per cent lift in operating EPS for fiscal 2017 to 42.5c, in line with analyst expectations.

The group declared a final dividend of 12.1c, bringing the full-year payout to 24c. Goodman expects this to rise 6 per cent to 25.4c in the coming financial year.