Goodman Group (GMG) has evolved into a top quality international commercial and industrial group which focuses on locations close to large urban populations. My neighbour works for them with specific focus on major customer Amazon. To give some context around this, say a new Amazon warehouse costs around $150m to build, they then put around $300m worth of internal fit out, with the cost of automation dominating. These are high tech operations, and the barriers to entry for someone else to compete hard against GMG is high.
Goodman has been the standout performer in the sector rallying over 20% over the last year, at this stage we remain bullish although the degree of outperformance might diminish as some other oversold names play catch up – GMG is forecast to yield 1.6% unfranked.
After a near death experience during the GFC, GMG now has over $50bn of assets under management across 17 countries, the holdings include warehousing, logistics operations and business / office parks.
MM is bullish GMG looking for ~10% upside
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