GOODMAN GROUP (GMG)



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General Information
Company Name: Goodman Group
Stock Code: GMG
Website: www.goodman.com
GICS Sub-Industry: Diversified Real Estate Investment Trusts
Market Cap ($M): 8,535
Equiv. Shares (M): 1,728

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 4.965 $ 4.970 $ 4.980 $ 4.930 $ 4.940 1,064,484 $ 0.025  0.506 %

Current Broker Consensus Recommendation more
Recommendation: Hold
Recommendation Date: 17th Feb 2014
12 Month Target Price (average): $5.016
Brokers Surveyed: 7

Company Overview

Business Description:
Goodman Group (GMG) is an integrated property group with operations throughout Australia, New Zealand, Asia, Europe, the United Kingdom, North America and Brazil. GMG comprised of the stapled entities Goodman Limited, Goodman Industrial Trust and Goodman Logistics (HK) Limited. GMG operates four divisions namely Property Investment, Fund Management, Property Services and Property Development.

Strategy Analysis:
GMG seeks to build scale for its own, manage, develop capital recycling business model by leveraging its established platforms in Australia, Europe and Asia, focusing on investors in industrial property. Entry into new markets of US, Brazil and China offer high growth potential. Future growth will be driven by property development and management earnings from the launch of new funds, primarily for large institutional investors, supplemented by occasional corporate acquisitions to further bolster scale. Goodman Group reported NPAT down 22.7% to $154.6m for the half-year ended 31 December 2012. Revenues from ordinary activities were $507.9m, up 8.7% from the same period last year. Diluted EPS was 1.2 cents compared to (4.2) cents last year. Net operating cash flow was $226.3m compared to $140.0m last year. No dividend was declared.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2015  F 652.3 37.0 9.0 13.4 22.0 4.5 0.0
2014  F 596.9 34.0 5.8 14.5 20.6 4.2 0.0
2013  A 545.0 32.1 5.8 14.0 19.4 4.3 26.8
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2013 A 2014 F 2015 F 2013 A 2014 F 2015 F 2013 A 2014 F 2015 F
BWP Trust (BWP) $1,542 M 0.5495 -0.2849 0.0386 11.7733 16.4634 15.8513 0.0578 0.0601 0.0631
CFS Retail Property Trust (CFX) $6,021 M 0.0821 0.0847 0.0133 15.9345 14.6907 14.4985 0.0682 0.0681 0.0693
Dexus Property (DXS) $5,976 M 2.5145 -0.2901 0.0402 10.1289 14.2672 13.7157 0.0545 0.0567 0.0578
Goodman Gp (GMG) $8,552 M 0.7651 0.0642 0.0678 15.2074 14.2898 13.3820 0.0392 0.0419 0.0447
Investa Office Fund (IOF) $2,051 M -0.2896 0.0218 -0.0035 14.8510 14.5344 14.5852 0.0531 0.0554 0.0556

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth
GMG 2.22 14.4 1.54 2.18
Market 1.07 16.0 1.27 1.98
Sector 1.52 14.2 1.04 3.09

Directors
Name Position Start Date
Mr Gregory (Greg) Goodman Chief Executive Officer,Executive Director 07 August 1998
Mr Anthony Rozic Deputy Chief Executive Officer,Executive Director 01 January 2013
Mr Danny Peeters Executive Director 01 January 2013
Mr Philip Pearce Managing Director, Greater China,Executive Director 30 July 2011
Mr Ian Douglas Ferrier Non-Executive Chairman 01 September 2003
Mr Philip (Phil) Pryke Non-Executive Director 13 October 2010
Ms Anne J Keating Non-Executive Director 23 February 2005
Mr John Beresford Harkness Non-Executive Director 23 February 2005
Mr James Christopher Sloman Non-Executive Director 01 February 2006
Ms Rebecca McGrath Non-Executive Director 03 April 2012
Mr Philip Fan Non-Executive Director 01 December 2011

Management
Name Position
Carl Bicego Company Secretary
Alison Brink General Manager, Marketing
Michael O'Sullivan Group Corporate Executive
James Inwood Group Head of Funds Management
Nick Vrondas Group Chief Financial Officer
Luc LaFontan Group Chief Information Officer
Carolyn Scobie Group General Counsel
John Taylor Group General Manager, Human Resources
Nick Kurtis Group Head of Equities

Substantial Shareholders
Holding Name
90,940,602 (5.29%) BlackRock Investment Management (Australia) Limited (formerly Barclays Global Investors Australia)
102,759,342 (5.98%) Vanguard Investments Australia Ltd
168,462,083 (9.80%) Leader Investment Corporation and China Investment Corporation

Calendar of Events
Date Event
12 February 2015 Report (Interim)
26 September 2014 Report (Annual)
14 August 2014 Report (Prelim)
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.

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