Goodman (ASX:GMG) confirms FY22 guidance despite cost pressures

Goodman Group (ASX:GMG) confirmed its FY22 guidance despite Covid-19 challenges and global geopolitical tensions.

The property giant confirmed operating earnings per share growth of 23 per cent, and a full year distribution of 30 cents per share. However, it warned Covid-19 and global tensions are placing pressure on supply chains, inflating costs and increasing execution costs.

During the third quarter, total assets under management reached $68.7 billion, with $13.4 billion of development work in progress. It also reported a 98.7 per cent occupancy.

Goodman said tight supply and demand continues to support leasing across its portfolio and developments, with high occupancy in its markets. It said its customers continue to intensify warehousing in urban locations, and increase automation and technology to optimise delivery and improve supply chain efficiency.

“Goodman has had another strong quarter with our operating results reflecting the highly targeted location of our portfolio. This has continued to produce high occupancy, cashflows, and development activity,” said chief executive officer Greg Goodman.

“The business environment is changing, with increased interest rates, inflation, geopolitical risks and the ongoing impacts of the pandemic, however, the long-term structural drivers of demand have not changed.”

Shares in Goodman Group (ASX:GMG) last traded at $19.67 on Friday.