Stock story

About the company

Goodman Group is an Australian integrated commercial and industrial property group that owns, develops and manages real estate. This includes warehouses, large scale logistics facilities, business and office parks and data centres globally. Goodman operates in key consumer markets in 14 countries across Asia Pacific, Europe and the Americas. It is the largest property group listed on the Australian Securities Exchange. Within its investment partnerships, Goodman works alongside its capital partners, which include sovereign wealth, pension and large multi-manager funds.

Why we like it

Goodman operate a diversified, global portfolio of supply constrained industrial assets. As e-commerce continues to grow and customers seek to improve supply chain efficiencies, this is driving strong rental growth, high occupancy, supportive asset valuations and redevelopment opportunities for its properties. The move into data centres also taps into another high growth property market that we believe will fuel the company’s growth over the medium term. 

Goodman’s growth is underpinned by a large development pipeline, fast growing funds management business with access to capital, strong operating leverage and performance fees. Furthermore, it operates with one of the best balance sheets in the sector with low, diversified and longer-duration debt, allowing it to deploy funds even in the event of a distressed market. We believe the management team is among the most highly regarded and experienced within the industry, with an excellent track record of capital allocation and generating returns for shareholders.