Analyst Note
| Alexander Prineas |Narrow-moat Goodman Group’s fiscal 2023 result saw operating earnings per security, or OEPS, growth of 16% to AUD 94.3 cents. Distributions were flat at AUD 30 cents per security, with the firm retaining capital for developments, opportunistic buying, and balance sheet strength. Guidance for fiscal 2023 is for OEPS growth of 9%. We think slowing growth reflects risks from higher interest rates and construction costs. Management says the latter has stabilised, but is elevated compared with 2019. We also expect consumer demand to slow in the near term amid recessionary fears.