By Byron Kaye

SYDNEY (Reuters), Australia’s most prominent industrial property group Goodman Group increased its profit forecast for Tuesday. Goodman Group cited supply chains blockages around the globe and a lack of space in warehouses, driving shares to a record.

This upgrade shows that a company is benefiting from an increase in shipping capacity, which has caused increased costs for retailers and manufacturers globally. It also prompts them to keep on top of supplies and to expand storage needs.

Goodman is currently building an Amazon.com Inc. (NASDAQ:), mega-warehouse in Sydney’s suburbs. Goodman said that it expects operating earnings per share to rise 15% by 2022, up from its August forecast of 10%.

Greg Goodman, CEO said that no one would give up their warehouse space in an interview.

Goodman said, “If stock can be obtained, then you are sitting on it, filling out your warehouses, regardless of product lines, and so forth.” Goodman holds 2% in Australia’s 15th largest company market value.

Goodman shares were up 7% during afternoon trading. It was their largest single-day gain since the initial pandemic lockdowns of early 2020. Analysts decided to update their forecasts. They reached their highest intraday level at A$23.95 and closed at A$23.49. That’s an increase of 5.6%. However, the broader market fell 0.3%.

Jefferies (NYSE) analysts stated in a note that increased demand, intensification and scale of development provide high medium to long-term earnings visibility and (assets Under Management) growth. Goodman’s latest update was “ahead” of their expectations.

Company, which owns 153 properties in Australia as well as a presence across 14 countries, anticipates that total assets under management will reach A$70 billion (52.65 Billion) in June 2022. This is up from A$62Billion in September and A$12.7B in development projects.

Goodman stated that he believed the supply chain disruptions would continue to provide benefits long after they were over. Customers wanted to adjust to longer-term trends like increased population, shorter freight trips to reduce carbon emissions and the adoption of electric vehicles.

He said, “It was happening before COVID. All COVID did is put an accelerator under it. Customers that had been thinking long-term about it are now saying, ‘I have to think about this a little shorter term.'”

($1 = 1.3296 Australian dollars)