Goodman Group (ASX: GMG) – Goodman Group Full Year Results

Goodman Group delivered solid results for the fiscal year ended 30 June 2026, with operating profit reaching $2,675 million, a 15.7% increase on the prior year. Operating earnings per security grew 10.1% to 129.9 cents, while statutory profit surged 67% to $2.8 billion, driven partly by property revaluations and fair value movements on hedging instruments. The company maintained its distribution at 30.0 cents per security and targets 9% operating EPS growth for FY27, demonstrating continued confidence in its earnings trajectory.

The most significant structural shift in Goodman’s business is its pivot toward digital infrastructure, with data centre developments now representing 78% of work in progress. Total WIP jumped 53% to $19.7 billion, reflecting the acceleration of this strategy. The company has assembled a global power bank of 6.4 gigawatts, with 3.6 GW already secured, positioned across 16 major cities. Management recently secured a 20-year lease with a hyperscale customer in Tokyo for 50 megawatts and is in advanced negotiations for full-building commitments at several other sites. This shift reflects management’s conviction that power, land and expertise will be the binding constraints on artificial intelligence infrastructure deployment over the next several years, not the technology itself.

The investment portfolio reached $89 billion, up 4% year on year, supported by cap rate compression of 12 basis points to 5.0% as institutional capital competed for modern logistics and data centre assets. Occupancy remained elevated at 95.6%, with like-for-like net property income growth of 4.0%. The company’s cornerstone metric, net tangible assets per security, increased 7% to $11.79, reflecting both earnings retention and valuation gains.

Goodman’s capital management has evolved alongside its strategic pivot. Partnership assets under management reached $75.4 billion, with the company raising $3.2 billion of third-party equity during the year. Approximately 71% of current WIP is being undertaken within partnerships or for third parties, distributing risk and capital requirements across a broader investor base. This model allows the company to originate development pipelines without carrying all development risk on its balance sheet. The company maintains a 30% average cornerstone position in its partnerships.

The balance sheet remains positioned with gearing at 6.5%, well within the company’s target band. Available liquidity stands at $6.4 billion in cash and undrawn facilities. Interest rate hedging is comprehensive, with 86% of next 12 months interest payments fixed at a weighted average rate of 3.86%.

One notable shift within earnings is the composition change. Development earnings jumped 34% to $1,792 million, reflecting higher transaction volumes. Management earnings, however, fell 18% to $690 million, driven by lower transactional and performance fees, a function of the company’s shift toward longer-term partnerships rather than asset rotations.

The key question for investors is execution. Goodman has positioned itself with sites, power and capital to build its data centre pipeline at scale. The next phase involves converting advanced negotiations into lease commitments and executing on a $19.7 billion WIP program extending through 2030. Management’s FY27 guidance of 9% operating EPS growth will test whether the company can deliver on this opportunity while maintaining the disciplined capital approach it has demonstrated.

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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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