Insights

Is the Goodman Group (ASX: GMG) share price the best REIT of 2020?

Could the Goodman Group (ASX: GMG) share price be the best performing ASX 200 REIT after hitting a record all-time high on Friday?
The post Is the Goodman Group (ASX: GMG) share price the best REIT of 2020? appeared first on Motley Fool Australia. –

row of white eggs with cartoon sad faces with one gold egg with happy face and crown representing high performing asx share

The Goodman Group (ASX: GMG) share price has been the most dominant ASX 200 real estate investment trust (REIT) performer in 2020. Its shares closed at an all-time record high last Friday of $19.66 or an almost 50% return this calendar year. The company also yields a modest 1.50% to top things off. 

Best performing ASX200 REIT? 

The Goodman share price has outperformed all its mid to large cap REIT cap peers.

This includes the likes of retail REITs such as Scentre Group (ASX: SCG) and Vicinity Centres (ASX: VCX) which are still down 40% year-to-date. Both companies highlight recovering rental collections and improving customer visitations to its shopping centres in quarterly updates this month. They also both revealed the intention to pay a distribution late this year or early next year subject to circumstances.  

Even pure industrial REITs such as Centuria Industrial REIT (ASX: CIP) and APN Industria REIT (ASX: ADI) are still down 10% year-to-date. This is despite significant improvements in their share prices since COVID-19-related March lows.

What’s driving the Goodman share price?

The Goodman Group operates a unique real estate portfolio compared to more ‘traditional’ office and retail REITs. The company owns a highly industrial concentrated portfolio that focuses on real estate in urban infill market where supply is limited and demand is driven by consumers. The scarcity of land in these areas drives increased intensity of use. This includes multi-story logistics, data centres and other commercial uses that provide potential value add opportunities. 

On 5 October, Goodman released its first quarter trading update that outlined strong real estate fundamentals with demand being driven by “customers adapting to the acceleration in online and digital activity and more intensively utilisating available space in our markets”. These strong underlying characteristics have allowed the company to maintain high occupancy rates, a strong development pipeline driven by demand and increasing assets under management. The trading update reaffirms the group’s forecast FY21 operating earnings per security of 62.7 cents, an increase of 9% on FY20. 

Credit Suisse has followed up on its quarterly update by raising its Goodman share price target from $17.34 to $19.84 with a neutral rating. 

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.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Is the Goodman Group (ASX: GMG) share price the best REIT of 2020? appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!