The Goodman Group (ASX: GMG) share price is pushing higher on Friday morning.
At the time of writing, the integrated property company’s shares are up 1.5% to $19.48.
Why is the Goodman share price pushing higher?
Investors have been buying Goodman’s shares following the release of its third quarter operational update.
According to the release, Goodman’s third quarter result reflects a strong operating performance underpinned by customer led demand for its assets in its chosen markets.
However, it does note that changing consumption trends across the physical and digital spaces are fundamentally impacting demand. In response, Goodman is developing new space particularly through multi-storey and higher intensity buildings within its urban locations.
Goodman’s CEO, Greg Goodman, commented: “We have concentrated our portfolio in high barrier to entry markets where land is scarce and use is intensifying. With a focus on long-term customer requirements, we are developing to meet demand in these consumer markets, providing essential real estate infrastructure for our customers.”
“Our results demonstrate resilience and growth in cashflows underpinned by this approach. The convergence of structural change, strong fundamentals and quality investments should continue to deliver positive performance and profitability for Goodman.”
Financials
At the end of the period, Goodman had $52.9 billion of total assets under management (AUM). This is up from $51.8 billion at the end of the first half.
Another positive was that its like-for-like net property income (NPI) growth was 3.3% across its managed Partnerships, with a sky high 98% occupancy rate.
Goodman also revealed that it has plenty of work in progress to support future growth. At the end of the period, it had $9.6 billion of development work in progress (WIP).
Guidance reaffirmed
Also giving the Goodman share price a boost today was management confirming that it is performing in line with full year expectations.
As a result, Goodman is expecting its FY 2021 operating profit to come in at $1.2 billion, representing earnings per share growth of 12% on FY 2020.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
More reading
- 2 compelling ASX shares rated as buys by brokers
- How $20,000 turns into $250,000 in 10 years with ASX shares
- 2 brilliant blue chip ASX 200 shares brokers love
- 3 fantastic ASX shares to buy this month
- Leading brokers name 3 ASX shares to buy today
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
The post Goodman (ASX:GMG) share price rises on solid Q3 update appeared first on The Motley Fool Australia.
from The Motley Fool Australia https://ift.tt/3tnEiHT
Leave a Reply