Goodman Group’s full-year FY26 results demonstrate solid momentum across its portfolio, with operating profit climbing 15.7% to $2.67 billion and operating earnings per security reaching 129.9 cents, up 10.1% year-on-year. The standout driver remains the company’s accelerating shift into data centre development, which now represents 78% of its $19.7 billion work-in-progress pipeline. This concentration reflects structural tailwinds from hyperscaler expansion and AI infrastructure buildout that management expects to sustain well into 2027 and 2028.
The earnings growth comes against a backdrop of sustained operational strength. Portfolio occupancy held firm at 95.6%, while like-for-like net property income grew 4.0%, indicating Goodman’s core logistics assets remain in robust demand. Revaluation gains of $3.1 billion across the group and partnerships underline the quality of its real estate holdings and the rising valuations attached to logistics and data infrastructure in markets where supply is increasingly constrained.
What matters most for investors is Goodman’s fortified position to capitalize on this demand surge. The company carries gearing of just 6.5%, alongside $6.4 billion in group liquidity and $12.4 billion in aggregate cash, undrawn lines and equity commitments across its partnership structures. This balance sheet position affords the company substantial firepower to fund its bulging development pipeline without materially weakening credit metrics, a critical advantage given the capital intensity of data centre construction.
The data centre opportunity itself appears structurally sound. Goodman now commands 6.4 gigawatts of power capacity across 16 major global cities, up from 5.0 gigawatts in 13 cities a year prior. Management has secured sites and power alliances in scarce markets where customer undersupply is expected to persist through 2027 and 2028. The company recently signed a 20-year lease for 50 megawatts with a hyperscale customer in Tokyo and is advancing negotiations for whole buildings across multiple sites, suggesting the development pipeline carries manageable conversion risk.
The FY27 guidance of 9% operating earnings growth and a distribution of 30.0 cents per security for FY26 reflect management confidence in execution. Net tangible assets per security rose 7% to $11.79, indicating underlying value creation. Investors should monitor the pace of work-in-progress conversion into operating assets, the realization of forecast yields on the $19.7 billion pipeline currently targeted at 8.2%, and whether gearing remains disciplined as development capital deploys. The company’s success in locking in long-term leases at attractive rates with hyperscalers will be a key determinant of value capture from its data centre strategy. 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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