Analyst Note| Alexander Prineas |
Strong demand for industrial property from tenants and investors saw another solid result from Goodman Group, beating its already strong guidance. Operating earnings per share, or OEPS, grew 14% in fiscal 2021 to AUD 0.66, which slightly exceeding guidance and our estimate. Goodman shares slid 2% on the day, with the market seemingly underwhelmed by guidance of 10% OEPS growth for fiscal 2022. We’re comfortable maintaining our 2022 estimate of OEPS growth of 12%, and note that Goodman typically upgrades guidance throughout the year. We also leave our distribution estimate for fiscal 2022 at AUD 0.30, in line with guidance and fiscal 2021.