市场见解

The Goodman Group (ASX:GMG) share price has notched up 8 all-time highs this month. Here’s why

Goodman shares keep rising, here’s why.
The post The Goodman Group (ASX:GMG) share price has notched up 8 all-time highs this month. Here’s why appeared first on The Motley Fool Australia. –

The Goodman Group (ASX: GMG) share price has kept rising this month. It has notched up several all-time highs in December 2021. What’s going on?

Goodman is one of the world’s biggest industrial property groups. It has a presence in Australia, New Zealand, Asia, Europe, the UK, North America and Brazil. Goodman aims to create innovative property solutions that meet the individual requirements of customers, whilst finding long-term returns for investors.

What’s going on with the Goodman share price?

Since the start of the month, Goodman shares have risen another 6.5%.

The business has been benefiting from structural trends for a while now and COVID-19 effects are accelerating those trends.

Indeed, Goodman says that it has been deliberately positioning its portfolio over the last decade to adapt to and leverage the changes in the digital economy. Those changes are now being realised. Customer demand for high-quality properties close to consumers has never been greater, according to Goodman.

Those trends are helping Goodman’s rental growth, increased development activity and higher valuations.

The rental side of the business is seeing very high levels of utilisation. At 30 September 2021, Goodman had an occupancy rate of 98.4% with a portfolio weighted average lease expiry of 4.7 years. Its 12-month like for like net property income growth was 3.2% in the last quarter.

The assets under management (AUM) had increased to $62 billion.

Further growth is expected

Goodman is benefiting from increased customer demand, which has resulted in an acceleration of development, particularly in infill locations.

At 30 September 2021, its work in progress (WIP) had reached $12.7 billion, with an annual production rate for the year expected to average approximately $6.8 billion. The strong demand is driving “strong margins” and the yield on cost is currently at 6.8%. These are some of the underlying factors that may be helping the Goodman share price.

The pre-commitments have a long WALE of 14 years.

Regeneration of existing brownfield sites is providing more sustainable development opportunities closer to consumers. Goodman expects this activity to continue to be a major source of development into the future.

Goodman said that its outlook is strong and it’s expecting its AUM to grow to around $70 billion by June 2022. Last month, Goodman acknowledged that COVID disruptions have been managed so that they have had less impact on the business than initial assumptions.

The property business also said that due to the strength of development projects, leasing success and stronger-than-expected performance of its partnerships, it increased its FY22 market guidance for operating earnings per security (EPS), which is now expected to be at least 15%.

Broker rating on the Goodman share price

There are still quite a few buy ratings on the business. However, Goodman shares have risen to those price targets.

One of the highest price targets at the moment is from Morgan Stanley, which has a target of $26.50 on the business. That’s only slightly higher than where it is now, suggesting the price may not move much over the next year if the broker is right (or doesn’t change the target).

The post The Goodman Group (ASX:GMG) share price has notched up 8 all-time highs this month. Here’s why appeared first on The Motley Fool Australia.

Should you invest $1,000 in Goodman right now?

Before you consider Goodman, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Goodman wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

2 fantastic blue chip ASX 200 shares to buy next week

Own the Vanguard Australian Property ETF (ASX:VAP)? Here’s what you’re invested in

2 highly rated ASX 200 shares to buy

2 market-leading ASX shares rated as strong buys by brokers

‘Close your eyes’: ASX share you can buy and forget

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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.

随时随地,交易世界!

移动APP平台,拥有 12 个市场的 50,000 多种全球上市证券(全球市值超过 70%),直接在您的 Android 或 iOS 设备上即可操作。

与独有的交易理念和投资分析工具相结合,帮助您在我们 12 个全球市场中的几乎所有金融工具上找到可操作的见解,从而帮助您优化交易策略。

推荐给您的朋友

向您的朋友推荐Monex并赠予他们免费使用我们交易工具的机会

我们尊重您的隐私,只会向您的朋友发送一封邮件 

与您的朋友分享

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!