02 Chairman’s letter

A strong finish

Ian Ferrier AM

Independent Chairman


Goodman Group’s strong result in FY20 came in a year of unprecedented challenges globally that tested the resilience of the business and of our people.

Our financial highlights include:

  • Operating profit of $1,060.2 million, up 12.5% on FY19
  • Statutory profit of $1,504.1 million (includes the Group’s share of valuation gains, non-cash items and derivative mark-to-market movements)
  • Operating earnings per security of 57.5 cents, up 11.4% on FY19
  • Distribution per stapled security of 30.0 cents, in line with the Group’s capital management strategy
  • Gearing at 7.5%, down from 9.7% in FY19
  • Group liquidity of $2.8 billion available, including $1.8 billion in cash (excludes $16.3 billion of equity commitments, cash and undrawn debt in Partnerships)
  • Net tangible assets increased 9.4% to $5.84 per security.
Our people

Over the decade, Goodman Group has established strong leadership teams, financial resources and a strategic real estate portfolio to maximise the sustainability of our earnings through difficult market cycles.

This has been reflected in a security price that has outperformed relevant benchmarks in FY20 and consistently over time. Since 30 June 2020, despite the global economic challenges resulting from COVID-19, we have outperformed the market by 20% as our investors benefit from, and react to, the Group’s resilience through its strategic positioning over many years.

The following table outlines the security price performance for the last 10 years.
Total Securityholder return relative performance (%)1 year3 years5 years10 years
Source Bloomberg/Nasdaq.
Shared culture and ambition

“Goodman’s focus on building strong teams, with deep local expertise, aligned to the Group’s values, as well as to those of our stakeholders, has paid off over the long term.”

A shared culture
and ambition

From the properties we invest in, to the relationships we build with our customers and Investment Partners, to the commitment we have for our people – we are focused on fostering long-term relationships with like-minded stakeholders.

Our people are our greatest asset. Developing and maintaining a strong, consistent culture is critical to the Group’s success. I believe Goodman’s heritage has been one of its key strengths. Over 25 years, the Group has grown from its Australian foundations into a truly global company with approximately 70% of earnings from international markets and a consistent company culture that is also adapted to each local market.

Sustainable and successful global expansion and growth over this time can be largely attributable to the Group’s ability, as an Australian company, to assimilate respectfully into local markets, complementing them and integrating the cultures near seamlessly. Goodman’s focus on building strong teams, not only with deep local expertise, but also aligned to the Group’s values, as well as to those of our stakeholders, has paid off over the long term.

Over time, relationships with many of our customers and capital Partners have extended from one market into multiple regions, allowing our shared intellectual property to be leveraged at scale, creating a unique and valuable opportunity for Goodman globally.

Critical to our future success, therefore, is retention of our people. To do this, we foster the right culture and present our teams with ambitious challenges and appropriate rewards. To protect our shared perspective of long-term decision-making, Goodman will remain competitive in remunerating its people and in aligning the interests of our people with our Securityholders.

Goodman Changzhou Logistics Centre, Changzhou, China.
Goodman Changzhou Logistics Centre, Changzhou, China.

Board changes

Board changes

The Goodman Board welcomes Mark G Johnson as an Independent Director of Goodman Limited and Goodman Funds Management Limited, and a member of the Audit Committee.

Mark spent 30 years at PwC where he was CEO from 2008 to 2012. He is currently on a number of listed boards, has extensive experience in the unlisted private sector and in government, education and community organisations.

As previously announced, this is my last year as Chairman; Stephen Johns will succeed me at the Annual General Meetings in November. Stephen joined the Board in 2017 as an Independent Director and Chair of the Audit Committee. Over this time, he has made a valuable contribution to the Board and is very well positioned to succeed me as Chairman. I am confident the Group will continue to prosper under his Chairmanship.

Finally, I would like to thank Greg and his team. It has been a privilege since 2003 to serve on, and then Chair, the Board of Goodman Group. It has been a wonderful journey, I have thoroughly enjoyed my time with the Group and I am delighted to be finishing my tenure with the business in such strong shape.

On behalf of the Board, I sincerely thank our customers and investors for their continued support and all of Goodman’s people for their contribution. I wish the Group every continued success in the future.

Thank you,

Ian Ferrier AM
Independent Chairman