Don't Miss Out on Stability: Own This Key ASX Stock

In the ever-evolving landscape of the Australian Stock Exchange (ASX), Goodman Group (ASX: GMG) stands as a stalwart stock, riding on strong tailwinds and showcasing impressive growth. The company has not only weathered the challenges of the past but has soared, boasting a remarkable outlook that captures the attention of investors.

Over the past year, the Goodman share price has experienced a remarkable ascent, surging by an impressive 59%. Zooming out to a five-year perspective reveals an even more striking picture, with a staggering 130% rise. This ascent positions Goodman Group as a notable player in the ASX landscape, signaling its resilience and growth potential.

Goodman Group positions itself as a global specialist in industrial property and digital infrastructure, with a presence in pivotal regions such as Australia, New Zealand, Asia, Europe, the UK, and the Americas, including ASX infrastructure stocks. The company distinguishes itself through ownership, development, and management of top-tier sustainable properties strategically situated near consumers in major cities worldwide.

The company's property portfolio is diverse, encompassing logistics and distribution centers, warehouses, light industrial spaces, multi-storey industrial facilities, business parks, and data centers. A recent highlight includes the impressive FY24 half-year result, where Goodman Group is expecting to achieve full-year operating earnings per security (EPS) growth of 11%.

Despite the challenges faced globally, Goodman Group remains robust with low gearing of 9%, positioning itself favorably in a high-interest rate environment. The portfolio occupancy stands high at 98.4%, coupled with like-for-like net property income (NPI) growth of 5%. 

The company's strong outlook extends to its data center strategy, with significant progress made in securing power and planning, initiating infrastructure projects, and collaborating with customers. Goodman Group is well-positioned to meet the growing demand for new, high-value, high-tier data center facilities in supply-constrained locations. Data centers are expected to be a key driver of growth for the group, offering attractive development margins on existing and new projects.

With total Work in Progress (WIP) amounting to $12.9 billion, covering 85 projects in 12 countries, Goodman Group is poised for substantial contributions to rental profits and operating EPS. The development yield on cost for projects in WIP is an impressive 6.7%, with a weighted average lease expiry (WALE) of 13.6 years.

While the Goodman share price may be perceived as not inexpensive, its consistent reporting of operating EPS growth around 10% each year, coupled with supply constraints in strategic locations, positions it as one of the highest-quality ASX shares. Goodman Group, with its impressive track record and strategic positioning, rightfully earns its status as an ASX stalwart stock.