Goodman Group (ASX:GMG) pivots towards inner-city warehousing

Company News

by Michael Luu

Commercial property company Goodman Group (ASX:GMG) has released data indicating the real estate player is on track to meet profit guidance for the financial year.

The company has reported a hike of 3 percent in net revenue from property operations. The industrial heavyweight highlights the encouraging data as vindication of its pivot towards inner-city warehousing.

Goodman Group has in recent times developed its infrastructure vertically rather than horizontally, expanding its portfolio its multi-storey warehouse assets. This type of assets account for 60 per cent of Goodman’s 9.6 billion development pipeline around the world.

The $35 billion industrial property developer believes the pandemic-driven boom of the e-commerce sector demands reduced shipping costs, higher delivery speed and better stock accessibility.

Goodman Group’s multi-story sheds are under development in major metropolitan areas in Australia, mainland China and Hong Kong to meet these needs.

The real estate player has maintained its operating-profit outlook for FY21 at $1.2 billion and full-year payout at 30 cents per share.

Shares in Goodman Group are trading 0.9 per cent higher at $19.36