Goodman Group Posts $2.31 Billion Operating Profit, Raises Dividend
Goodman Group has reported a robust increase in operating profit and revenue for FY25, alongside a raised final dividend and notable changes in entity control within its portfolio.
- Operating profit up 12.8% to $2.31 billion
- Revenue increased 16.5% to $2.31 billion
- Final dividend raised by 6.9% to 15 cents per security
- Gearing reduced to 4.3%, reflecting stronger balance sheet
- Control gained over multiple US-based entities, with some disposals
Strong Financial Performance
Goodman Group has delivered a solid financial performance for the year ended 30 June 2025, with operating profit before significant non-cash items rising 12.8% to $2.31 billion. This growth was supported by a 16.5% increase in revenue, also reaching $2.31 billion, underscoring the group's ability to capitalize on demand in the industrial and logistics property sector.
Other income, which includes gains from fair value adjustments and equity accounted investments, surged dramatically by over 1700%, contributing to the overall positive earnings momentum. The statutory profit attributable to securityholders also saw a substantial jump, reflecting the group's effective management of its asset portfolio and operational efficiencies.
Dividend and Balance Sheet Strength
Investors will welcome the announcement of a 6.9% increase in the final dividend to 15 cents per security, bringing the total distribution for the year to 30 cents per security. This marks a steady commitment to returning value amid a competitive market environment. Notably, the group's gearing ratio has improved, dropping from 8.4% to 4.3%, signaling a more conservative capital structure and enhanced financial resilience.
Portfolio and Entity Control Adjustments
Goodman Group's total portfolio value rose to $85.6 billion, with external assets under management also increasing to $72.1 billion. The company gained control over several material entities, primarily located in key US logistics hubs such as Long Beach, Anaheim, and San Francisco, reflecting a strategic expansion in high-demand markets. Conversely, control was relinquished over certain trusts, indicating a portfolio rebalancing effort.
The detailed list of associates and joint ventures reveals Goodman’s extensive global footprint, with significant stakes in partnerships across Europe, Asia, and the Americas. This diversified approach positions the group well to navigate varying regional market dynamics and capitalize on growth opportunities.
Looking Ahead
While the Distribution Reinvestment Plan remains suspended, Goodman’s strong earnings and dividend growth provide a positive signal to investors. The company’s strategic acquisitions and disposals suggest a focused approach to portfolio optimisation, aiming to sustain long-term value creation amid evolving market conditions.
Bottom Line?
Goodman’s FY25 results reinforce its market leadership, but investors will watch closely how new entity controls translate into future growth.
Questions in the middle?
- How will the newly acquired US entities impact Goodman’s earnings trajectory?
- What are the strategic reasons behind the disposal of certain trusts?
- When might the Distribution Reinvestment Plan be reinstated, if at all?
