Full Year 2024 Goodman Group Earnings Call Transcript
Key Points
- Goodman Group (GMGSF) reported a strong operating profit of over $2 billion for FY24, with operating earnings per security up 14% from the previous year.
- The company has a significant focus on logistics and data center opportunities in key cities, where barriers to entry are high and supply is limited.
- Goodman Group (GMGSF) has expanded its global power bank to 5 gigawatts, with 2.5 gigawatts of secured power already in place.
- The company is actively embracing sustainability, investing in renewable power, low carbon materials, and contributing $13.5 million through the Goodman Foundation.
- Goodman Group (GMGSF) has maintained a robust development workbook of $13 billion, with data centers comprising 40% of this portfolio.
- FX movements had a $40 million positive impact on the translation of foreign-denominated operating results, but this was offset by a commensurate expense in borrowing costs.
- Direct property net rental income decreased due to $1.2 billion of net divestments over the past 24 months.
- The valuation declines in FX translation were offset by net acquisitions and the completion of development, indicating some volatility in asset values.
- The timing of revenue recognition for development projects has been extended into future years, potentially affecting short-term earnings.
- The data center industry faces significant barriers to entry, including land scarcity, complex planning, regulatory hurdles, and challenges in securing power, which could impact project timelines and costs.
Good day and thank you for standing by. Welcome to the Goodman Group FY24 full year results call.
(Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, CEO, Greg Goodman. Please go ahead.
Thank you. Good morning, everyone.
I'll give a brief strategic overview and our CFO, Nick Vrondas, who's with me in the room, will take us through the results.
Goodman has evolved as a provider of essential infrastructure with our warehouses and data centers supporting the flow and storage of goods and data throughout the economy. The expansion of the digital economy continues at pace. The growth of e-commerce, cloud computing, and the adoption of new technologies, including artificial intelligence and machine learning is creating significant opportunity for Goodman to develop the infrastructure our customers are seeking. This has supported the group's strong operational results in
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