Goodman Group (ASX: GMG) – Goodman Q1 FY27 Operational Update

Goodman Group has reported a $90 billion total portfolio at 30 September 2026, underpinned by structural demand for urban logistics and data centre infrastructure in major global cities. The most significant development is the acceleration toward data centre assets, which now represent 79 percent of the company’s $19.7 billion development work in progress pipeline spanning 51 projects across six continents. This strategic reorientation reflects management’s assessment that escalating barriers to entry, driven by scarcity of strategic sites, constrained power availability, and complex planning requirements, create a favourable long-term environment for established developers with scale and capital.

The expansion of Goodman’s power bank to 6.6 gigawatts, with 3.6 GW now secured, provides the physical enabler for this data centre pivot. The company indicates that projects are on track for staged delivery between early 2027 and 2030, with strong customer demand evident in advanced negotiations with hyperscale and enterprise operators across key locations including Sydney, Frankfurt, Amsterdam, Paris, Los Angeles, Tokyo, and Hong Kong. The yield on cost of 8.3 percent on current work in progress demonstrates reasonable returns in the prevailing interest rate environment, though investors should recognize that execution risk persists across multi-year development timelines involving coordination of power, land, approvals, and customer commitments. CEO Greg Goodman emphasised that the company has “built the portfolio, power bank, customer relationships and maintained the financial capacity needed to deliver new logistics and data centre opportunities,” framing reliable delivery and financial flexibility as enduring competitive advantages.

The capital management framework distributes development risk and capital requirements through partnership structures. Approximately 90 percent of data centre projects under construction are held in partnerships, with managed partnership assets under management reaching $76.1 billion. This co-investment approach enables Goodman to leverage external capital while preserving project influence and value participation. The company raised US$455 million during the quarter for the Goodman Hong Kong Data Centre Partnership, attracting new institutional investors to major hub markets.

The underlying portfolio delivered like-for-like net property income growth of 4.0 percent globally, 6.2 percent excluding Greater China, reflecting demand resilience despite regional volatility. Portfolio occupancy stands at 95.5 percent with a weighted average lease expiry of 4.9 years. Management is targeting operating earnings per security growth of 9 percent for FY27 and a distribution of 30.0 cents per security. Investors should track execution against development milestones, the pace at which data centre customer pre-commitments materialise as projects approach ready-for-service dates, and whether rental growth continues as supply constraints persist. 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.