Research Update: Goodman Australia Industrial Partnership Upgraded To 'A-' On Conservative Financial Policies; Outlook Stable

Australia-based unlisted industrial REIT Goodman Australia Industrial Partnership (GAIP) has adopted a more conservative financial stance. This is evidenced by it undertaking a combination of recent equity raisings, a more prudent approach to capital management, and at the same time executing on its operating strategy. We expect financial measures to continue to improve and believe that any future material asset acquisitions or developments will be funded through a combination of debt and equity such that its credit metrics remain commensurate with the 'A-' rating. On Oct. 28, 2021, S&P Global Ratings raised our long-term issuer credit rating on GAIP to 'A-' from 'BBB+' with a stable outlook. The stable outlook reflects GAIP's sizeable portfolio of well-located industrial assets. We believe

...- Australia-based unlisted industrial REIT Goodman Australia Industrial Partnership (GAIP) has adopted a more conservative financial stance. This is evidenced by it undertaking a combination of recent equity raisings, a more prudent approach to capital management, and at the same time executing on its operating strategy. - We expect financial measures to continue to improve and believe that any future material asset acquisitions or developments will be funded through a combination of debt and equity such that its credit metrics remain commensurate with the 'A-' rating. - On Oct. 28, 2021, S&P Global Ratings raised our long-term issuer credit rating on GAIP to 'A-' from '###+' with a stable outlook. - The stable outlook reflects GAIP's sizeable portfolio of well-located industrial assets. We believe GAIP's strengthened competitive advantage, through its ownership of strategic assets in attractive leasing markets, will help to underpin its ability to manage future asset acquisitions and material...

Research Update