Goodman shares drop despite topping upgraded guidance
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More news: Shares in Goodman Group dropped on the ASX despite the industrial property investor topping its upgraded full-year guidance.
Goodman shares fell 2.2% to $34.37 by 12:10pm AEST.
What they said: "A strong FY24 result as better-than-expected results from management and lower overheads, interest and tax are offset by lower-than-expected development income," Jarden analysts said.
"FY25 guidance is similar to last year at 9% growth but [Goodman] has a strong track record of upgrading guidance throughout the year and we are comfortable with our 11% growth forecasts or [Visible Alpha] consensus at 12%.
"[Goodman] has significantly outperformed the sector and market over the last six to 12 months so shares may trade sideways in the near term but this remains one of the best growth stories out there, in our view."
Goodman Group tops upgraded earnings guidance
The news: Goodman Group beat its upgraded full year guidance as it reported a 14% earnings boost driven by a demand in new data centre infrastructure.
The numbers: Operating earnings per share climbed 14% year on year to 107.5 cents, after the group guided a 13% rise in May. Operating profit grew 15% year on year to $2.049 billion, in line with Visible Alpha forecasts.
However, Goodman reported a statutory loss of $98.9 million as the value of its total portfolio fell 3% to $78.7 billion due to revaluation declines of $5.1 billion across the group and its partnerships.
The company declared an annual distribution of 30 cents per security, unchanged from a year earlier.
Goodman said it forecasts operating earnings per share of 117.2 cents in FY25, up 9% on FY24.
The context: Goodman noted that the growth of e-commerce, cloud computing and adoption of new technologies, such as artificial intelligence and machine learning, is creating "significant opportunity" for the group to develop new infrastructure.
With data centres now accounting for 40% of its $13 billion global project pipeline, Goodman said that the expansion of the digital economy supported earnings in FY24 despite global market uncertainty.
It noted that the group's focus remains on logistics and data centre opportunities in key cities around the world, where barriers to entry are high and supply is limited.
What they said: "We are well positioned heading into FY25, with a strong development workbook underway, a robust capital position and attractive opportunities before us," said Goodman CEO Greg Goodman.
The sources: ASX announcement, Jarden research
