A positive Goodman Group has reaffirmed its financial year earnings guidance of 57.3 cents per security and a full-year distribution of 30 cents per security.
The guidance, a 11 per cent lift on the previous year, was put down to a surge in demand from customers in the food, consumer goods and logistics sectors, stimulated by the coronavirus.
Goodman said its concentration on urban logistics developments, delivering essential infrastructure and enabling distribution of critical supplies, had helped it weather the storm.
Goodman chief executive Greg Goodman acknowledge the unprecedented times being experienced globally and the “terrible impact Covid-19 was having on people’s lives and livelihoods”.
Consistent with other landlords, Goodman indicated it is working on a one-on-one basis with its customers who were suffering financial distress as a direct result of pandemic.
“Our priority continues to be the safety and wellbeing of our people, customers and partners,” Goodman said.
Goodman, one of the biggest global landlords for online retailers Amazon and Alibaba, saw its total assets under management increase by $5.6 billion, or 12 per cent, to $51.3 billion while its work-in-progress assets grew to $4.8 billion by the end of March.
Goodman has tipped that number to hit $5 billion by June as new supply options remain in high-demand.
The industrial portfolio manager also commenced $2.5 billion worth of developments in the last nine months.
The group said there had been a rise in tenants seeking out both temporary and permanent space, which has kept its portfolio occupancy at 97.5 per cent and seen limited closure or disruption of warehouse facilities over the past few months.
Globally, the group leased 2.4 million square metres across its platform over the last nine months, equating to an additional $344.5 million of rent per annum, maintaining a healthy 4.5 year weighted average lease expiry.
Leasing activity was evenly spread cross its three global markets, with Australia and New Zealand accounting for 811,000 square metres of uptake, many of which specialise in online and e-commerce operations.
Goodman said areas such as south Sydney and Port Melbourne had seen a spike in rental inquiries for short to medium-term warehouse space due to proximity to the ports and airports.
The company's shares, which have lost almost 42 per cent of their value by mid-March have recovered well over recent weeks increasing in value by more than 45 per cent.
“Markets we’re in have been affected at various times and to varying degrees,” Goodman said.
“Alongside our customers and the logistics and warehousing sector globally, we are playing an important role in delivering essential infrastructure.”
Late last year, the industrial property manager received approval for a massive industrial development in Sydney’s western suburbs, dubbed Oakdale West, located in the western Sydney employment area that will create more than 200,000 additional jobs over the next two decades.