The ASX-listed $37.2 billion Goodman is the largest property group on the market. In the 2023 financial year it increased its funds under management by 11 per cent to $76.3 billion and has bumped its capital partners from 16 to 20, being a range of superannuation, pension and sovereign funds.

In the year to June 30, the group posted an operating profit of $1.76 billion, up 17 per cent on the prior years, and has forecast a 9 per cent growth in earnings for the coming year, in line with market expectations. This is equal to an earning share of 94.3¢ up 16 per cent on the 2022 year, and ahead of recent guidance.

Loading

Winston Sammut, property director at Euree Asset Management, said the Goodman result has delivered on a positive across most, if not all, the metrics currently in focus.

“Development margins are holding up well and balance sheet gearing remains low at 8.3 per cent, placing Goodman in a sound position to take advantage of opportunities as and when they materialise. As has been the case in the past, it is expected that the group will deliver over and above its stated guidance of 9 per cent growth in 2024,” Sammut said.

Included in the development pipeline is the massive land bank that Goodman has amassed and is located in its gateway cities across the world. In Australia, this is in the north-west of Sydney and the tightly held fringe suburbs of Melbourne.

Goodman said these land holdings are “ripe” for development in the burgeoning build-to-rent sector, which is seen as an affordable housing option.

“We have the land, and we will clear it, get the planning and zoning in place, then hand it over to an operator who will go and do their business which is building it, managing it and eventually owning it,” Goodman said.

Goodman declared a final distribution of 15¢, payable on August 25. Its shares closed 5.7 per cent stronger at $20.88.

The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.