SYDNEY, Nov. 10, 2011 /PRNewswire-Asia/ -- Goodman Group
(Goodman or Group) has today announced an operational update for
the quarter ended 30 September 2011
and reaffirms its earnings guidance for the 2012 financial
year.
Key operational highlights:
- Leased 0.4 million sqm for the quarter across the Group and
managed funds, representing A$42.9
million of annual rental income
- Occupancy maintained at 96% across the Group and managed funds,
achieving an overall weighted average lease expiry of 5.0
years
- Development work in progress at A$2.0
billion across 47 projects, with a forecast yield on cost of
8.9%
- A$350 million of new development
commitments secured, and A$226
million of completions
- 89% of new developments pre-committed and 55% pre-sold
(Note1)
- External assets under management (AUM) increased to
A$15.4 billion (2% increase on a
constant currency basis from June
2011)
- Goodman European Logistics Fund (GELF) launched a euro400 million underwritten rights issue and an
euro800 million debt package
- Continued focus on capital management initiatives at a Group
and Fund level, including asset recycling and extending debt
facilities
- Maintained liquidity at A$1.1
billion sufficient to repay all outstanding maturities to
FY2015
Goodman Group Chief Executive Officer, Mr Greg Goodman said: "We have delivered a solid
operating performance in the first quarter of FY2012, with good
contributions made by all parts of our business. Leasing activity
across the Group and managed funds has remained robust, which is
reflected in our high occupancy levels of 96% and retention
rates."
Goodman's development business continues to experience
significant customer demand across a number of industry sectors
including third party logistics, retail, e-commerce and automotive,
which has driven the growth of the current development work book to
more than A$2 billion.
"Our development activities in Europe and China have been particularly strong. We have
more than 345,000 sqm of projects currently underway in
Greater China, with the strategic
procurement of land sites growing our land bank to in excess of 2
million sqm and positioning the Group to capitalise on the shortage
of prime logistics space. In Europe, the continued strong customer demand
is providing us with a number of quality pre-committed
opportunities and we have secured an additional 291,000 sqm of new
projects across Europe to date in
FY2012. Consequently, we have good visibility into our development
earnings not only in FY2012, but continuing into FY2013." Mr
Goodman said.
During the quarter, Goodman continued to focus on maintaining a
sound financial position at a Group level and across its managed
fund platform. A$290 million of
assets were recycled, providing capital to redeploy within the
business and enhance the quality of the overall portfolio. The
initiatives were also undertaken to further strengthen the
financial position of Goodman's managed funds and provide greater
flexibility and liquidity to pursue new investment
opportunities.
Mr Goodman added: "The recent euro1.2
billion capital management initiatives undertaken by GELF
demonstrate our focus on a prudent capital management strategy and
highlight the quality of our capital partner relationships. Debt
capital markets also remain open to the Group as evidenced by
Goodman Australia Industrial Fund's US$300
million US Private Placement."
Strategy and outlook
Goodman Group is well positioned in the current environment as a
leading specialist provider of prime quality industrial property
and business space. The Group is focused on leveraging the strong
competitive position provided by its proven expertise, extensive
international operating platform and support from significant
capital partners, and will continue to assess a broad range of
initiatives to drive earnings growth and meet the substantial
customer and investor demand for our product.
Mr Goodman noted: "The Group has made a strong start to FY2012
and we are committed to the prudent yet active delivery of our
business strategy. Our focus on capital management, active asset
management and increasing the contribution from our development and
management activities are expected to be key earnings drivers over
the coming year. Accordingly, we reaffirm our full year operating
EPS guidance of 6.0 cents and
operating profit after tax of A$460
million."
(Note 1): Including developments offered to managed funds, the
percentage of pre-sold new commitments increases to 88%.
About Goodman
For more information please visit www.goodman.com.
For further information, please contact Goodman:
Gregory Goodman
Group Chief Executive Officer
Tel: +61-2-9230-7400
SOURCE Goodman Group