Goodman Group has delivered a solid operating performance with operating profit rising 15.7% to $2.67 billion in the year to June 2026, with data centre developments emerging as the primary driver of the group’s growth trajectory. Operating earnings per security increased 10.1% to 129.9 cents, while statutory profit reached $2.78 billion, reflecting both operational strength and significant revaluation gains of $3.1 billion across the group and its partnership structures.
The expansion of Goodman’s data centre pipeline reflects a structural shift in the company’s business model toward digital infrastructure assets. With data centres now representing 78% of the $19.7 billion work-in-progress portfolio, the group is positioning itself to capture growing demand driven by artificial intelligence adoption, cloud expansion, and the chronic undersupply of power and land in major metropolitan markets. CEO Greg Goodman emphasized that many hyperscalers are facing undersupply into 2027 and 2028, positioning Goodman’s substantial development workbook as strategically valuable. The WIP spans 50 projects across 12 countries with a forecast yield on cost of 8.2%, indicating healthy returns on deployed capital.
Goodman’s balance sheet provides the foundation for executing this expanded development program. The group maintains significant liquidity of $6.4 billion and has access to $12.4 billion in cash, undrawn facilities, and equity commitments across its partnership structures. Gearing increased to 6.5% from 4.3% a year earlier, still positioning the company well below typical leverage thresholds for large real estate funds. The interest cover ratio of 25.4x demonstrates comfortable debt servicing capacity, though investors should note the look-through gearing of 19.5% when accounting for partnership structures.
On the operational side, portfolio occupancy stood at 95.6%, while like-for-like net property income growth of 4.0% underscores the resilience of the logistics portfolio despite rapid deployment into data centre development. Net tangible assets per security increased 7% to $11.79, and the group has declared a distribution of 30.0 cents for the financial year. The global data centre power bank has grown to 6.4 gigawatts across 16 cities, an increase from 5.0 gigawatts and 13 cities a year earlier, demonstrating the physical constraints shaping the group’s competitive positioning.
Investors should monitor the group’s ability to execute its expanded development pipeline while managing the gearing increase required to fund it. The company has guided for FY27 operating earnings per security growth of 9%, a more modest pace than FY26 but still reflecting material expansion. The completion of customer leasing alongside construction progress, including a recent 20-year lease with a hyperscaler customer in Tokyo, will signal execution capability across the data centre development program. This announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About Goodman Group (ASX: GMG)
Goodman Group is a global industrial property group that owns, develops, and manages logistics and warehouse facilities. It has a significant presence in key markets across Australia, Asia, Europe, and the Americas.
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