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Goodman reiterates guidance

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Property developer Goodman Group has reaffirmed its full-year earnings guidance after total assets under management rose in the first quarter.

At the company's annual general meeting in Sydney today, chief executive Gregory Goodman reaffirmed the company's guidance of a 6 per cent lift in full-year operating earnings per share to 39.4 cents.

The company -- which provides warehouse spaces globally -- also maintained its forecast for a total earnings distribution lift of 7 per cent, to 23.8c. Goodman in August reported an 84 per cent rise in net profit to $1.2 billion last financial year and an 8.7 per cent rise in operating profit before significant items of $653.5 million.

The company said total assets under management were "over $32bn" at September 30, rising from the $30.3bn recorded for June 30.

Mr Goodman said the group's occupancy rate was "strong" at 96 per cent, while its development pipeline totalled $3.4bn, including 35,000 apartments that would provide a "significant" long-term source of capital.

"With customer demand driving increased development activity, we see our US development and investment pipeline growing toward $4 billion over the short to medium term," he added.

Mr Goodman said industrial property was considered an "ugly duckling" 20 years ago, but the company was now benefitting significantly from value gains on sites purchased in the 1990s.

"We now have one of the most attractive institutional grade investments and probably the most sought after asset class," he said.

At the 4.15pm (AEDT) official market close, Goodman was down 1.46 per cent to $6.09 against a benchmark decline of 0.93 per cent.


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