Article in the Australian this morning.Goodman Group first-half...

Article in the Australian this morning.

Goodman Group first-half loss widens, maintains full-year forecast

GOODMAN Group's first-half net loss widened to $500.3 million from $465.9m a year earlier, but reaffirmed its earnings outlook and said valuations were stabilising in its core global markets.
Australia's biggest industrial real estate trust said the coming year should see strong growth from its Asia, Australia and Europe operations and it intended to expand its fund management business.

"We are cautiously optimistic, not optimistic," chief executive Greg Goodman told reporters.

Apart from Australia and New Zealand, Mr Goodman's biggest markets are Germany, France, Britain, Benelux, Poland, Slovakia and Hungary, with enquires in Europe "looking quite good," the CEO said.

"There's some pent up demand," Mr Goodman said.

Rental yields have been stable, while the best performing markets have been Britain and Australia, where industrial properties are outperforming business parks.

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Asked what kind of acquisitions the company might target, the CEO said there was little that was attractive on offer around the world right now.

"There's not a lot of good quality prime property for sale in our markets around the world," he said.

Goodman Group, which has the Chinese government as its largest shareholder, is planning to borrow in the global debt markets in the coming year, likely targeting five-year or seven-year maturities in either the sterling, US dollar or euro markets, the CEO said.

He added the company would also consider the local debt market but stressed all its maturities were covered until the first half of 2013, while gearing has been cut by 25 per cent.

The company said operating profit before items came in at $138.5m, and it planned to pay an interim distribution of 1.5 cents.

It reaffirmed full-year earnings per share guidance of 5.7c per share and a distribution of 3.4c.


http://www.theaustralian.com.au/business/property/goodman-group-first-half-loss-widens-maintains-full-year-forecast/story-e6frg9gx-1225833779018