Corporate Action: Recommend Not Taking Part in Goodman’s Security Purchase Plan

Narrow-moat Goodman completed an AUD 4 billion institutional placement and is raising AUD 400 million via a share purchase plan. The proceeds will be first used to reduce debt, and fund future data center opportunities. As of Dec. 31, 2024, gearing (net debt/tangible assets) jumped to 17%, from 8% six months ago, with a North American partnership restructure. But it is still within the 0%-25% target. The equity raise will push gearing down to the low 10% range.