Goodman Group's development pipeline has been pushed up by 59 per cent to $6.5 billion in the financial year as a result of E-commerce, big data and technology.
Amazon, the group's largest customer, contributed heavily to this result as the US giant entered into a 20-year lease with the group for a brand-new four-level warehouse in Western Sydney, as well as partnering for a multi-million-dollar fulfilment warehouse in Brisbane.
Goodman Group's results showed an operating profit increase of 12.5 per cent to $1.06 billion, while statutory profit was down 7.6 per cent to $1.5 billion. This decrease was largely due to increased operating expenses, a drop in property valuation-related movements and borrowing.
Goodman chief executive Greg Goodman said it had been an extraordinary year, with the impact of the Covid-19 continuing to have a profound impact on the world.
“The events of the last year have resulted in global changes in behaviour including an acceleration of e-commerce adoption, a shift to remote working and a significant increase in the demand for technology and big data,” Goodman said.
“We expect Covid-19 to continue to significantly impact the way we work for the foreseeable future.”
Moody’s vice president Matthew Moore said Goodman’s financial metrics remain strong for its ratings, reflecting improving earnings and the group’s conservative financial policies.
“While the proportion of earnings from developments, which we view as more volatile, will continue to increase as development work in process grows, Goodman’s low gearing levels and excellent liquidity profile, combined with high pre-commitment levels, mitigate the potential for added volatility,” Moore said.
“Also, as developments complete they will flow through to increases in more stable management and investment income.”
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