Goodman Group's profit rises to AUD $2 billion despite losses

Goodman Group has reported a strong operating profit of AUD $2,049 million for the full year ending 30 June 2024, marking a 15% increase over the previous financial year. Additionally, the company's operating earnings per security (EPS) grew by 14% to 107.5 cents. Despite these positive operating figures, the Group recorded a statutory loss of AUD $98.9 million.

Greg Goodman, the Group's CEO, commented on the results, stating, "Goodman is providing essential infrastructure, with our warehouses and data centres supporting the flow of goods and data through the economy." He emphasised the importance of the digital economy's expansion, driven by the growth of e-commerce, cloud computing, and advancements in artificial intelligence and machine learning, which have presented significant opportunities for the Group.

The data centre segment now constitutes 40% of Goodman's global development work in progress, valued at AUD $13.0 billion. The Group's global power bank has also expanded to 5.0 GW across 13 major international cities. This power bank includes 2.5 GW of secured power, with the remaining 2.5 GW at advanced procurement stages on sites under Group control.

Goodman has made noteworthy strides in its data centre strategy, which was highlighted by the appointment of Giles Proctor as Vice President of Data Centres. Greg Goodman explained, "Our focus has remained on logistics and data centre opportunities in key cities worldwide, where barriers to entry are high and supply is limited."

Financially, Goodman has maintained a prudent approach to capital management. Gearing stands at 8.4%, with a look-through gearing of 22.7%. The Group boasts an interest cover ratio of 44.0 times and has AUD $3.8 billion in cash and undrawn lines, with no major debt maturities until late 2025. Net tangible assets per security have decreased by 3.5% to AUD $8.80. The distribution per security for FY24 is set at 30.0 cents.

Operational highlights include a high portfolio occupancy rate of 97.7% and a like-for-like net property income (NPI) growth of 4.9%. The Group's development projects are also noteworthy, with 80 ongoing projects across 12 countries, covering 4.0 million square metres and showing a development yield on cost of 6.7%.

Goodman continues to see robust demand for its properties, with 99% of completed projects leased upon completion. The weighted average lease expiry (WALE) for projects in development work in progress is reported at 12.9 years.

The Group also detailed its sustainability efforts, notably working to reduce emissions through renewable energy and innovative materials. Greg Goodman expressed optimism about future growth: "We are well positioned heading into FY25, with a strong development workbook underway, a robust capital position, and attractive opportunities before us." He also projected FY25 operating EPS to be 117.2 cents per security, a 9% increase on FY24, with the annual distribution remaining at 30 cents per security.

In terms of sustainability, Goodman has committed to building resilience and maintaining a low-carbon company by focusing on renewable power procurement, low-carbon materials in development, and community investments through the Goodman Foundation.

Greg Goodman summarised the Group's outlook: "We've positioned Goodman as a major provider of essential infrastructure globally. This is the result of many years of focus on executing our strategy, which has strengthened the value of the Group's assets."