Goodman Group shares rise on guidance upgrade
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More news: Shares in Goodman Group climbed 6.1% to $28.23 by 11:40am at AEDT, after the property investor reported a statutory net loss of $220.1 million for the six months to December 2023.
Despite the decline, Goodman upgraded its full-year guidance and is now forecasting earnings per share growth of 11% in FY24, up from its previous estimate of 9%.
Goodman Group upgrades earnings despite half year loss
The news: Industrial property investor Goodman Group has swung to a half-year loss after hefty writedowns, but upgraded its full-year earnings guidance due to strong rental growth.
The numbers: It recorded a statutory net loss of $220.1 million for the six months to December 2023, down from a profit of $1.1 billion a year ago, after booking write-downs of $3.4 billion in asset values across its $79 billion portfolio.
However, operating profit adjusted for the non-cash items, was up 29% to $1.13 billion. The group will pay an unchanged interim 15 cents dividend per security. Goodman shares were up more than 4% to $27.76 on early trading on the ASX.
The context: Goodman said despite the decline in valuations, on the ground occupancy across its portfolio remained high at 98.4% and like-for-like net property income grew at 5%. The company has $12.9 billion of projects underway across the world, with data centres accounting for over a third of this.
The group upgraded its full-year guidance on the back of strong demand for logistics facilities and a pick up in rents, and is now forecasting earnings per share growth of 11% in FY24, up from its previous estimate of 9% growth.
The source: ASX
