Company Reports

Goodman operates an own-develop-manage business model. A typical cycle starts from acquiring a site and developing it. Completed projects are either sold or retained in one of Goodman’s funds or partnerships. Goodman typically retains minority stakes in the investment vehicles and continues to manage the sites after completion.

Goodman's fiscal 2026 operating earnings per security jumped 10% to AUD 1.30, and the group expects another 9% increase in earnings next year. Yet, the market wasn't impressed. Securities are down around 7% since.

Data centers were two-thirds of Goodman's AUD 14.5 billion development pipeline at the end of March 2026, and the group remains committed to expanding it to AUD 18 billion by June 2026. Management also reiterated its fiscal 2026 operating earnings growth target of at least 9%.

Goodman operates an own-develop-manage business model. A typical cycle starts from acquiring a site and developing it. Completed projects are either sold or retained in one of Goodman’s funds or partnerships. Goodman typically retains minority stakes in the investment vehicles and continues to manage the sites after completion.

Goodman's first-half operating profit per security fell 8% year on year to AUD 59 cents, on lower transactional and performance fees, and development earnings timing. Full-year guidance remains for operating earnings growth of 9% and distributions of AUD 30 cents.

Goodman operates an own-develop-manage business model. A typical cycle starts from acquiring a site and developing it. Completed projects are either sold or retained in one of Goodman’s funds or partnerships. Goodman typically retains minority stakes in the investment vehicles and continues to manage the sites after completion.

Goodman and the Canada Pension Plan Investments Board are establishing a AUD 14 billion Europe data center partnership. The two entities will halve the initial capital commitment of AUD 3.9 billion to develop four data centers across Frankfurt, Amsterdam, and Paris.

According to the Australian Bureau of Statistics' latest data release at the end of November, total new private capital expenditure reached the highest level in more than a decade, adjusted for price changes. The 7% year-on-year growth was largely driven by a surge in data center spending.

Goodman delivered operating earnings of AUD 1.18 per security, up 10% from last year. Distributions remained steady at AUD 0.30, representing a payout ratio of 25%.

Goodman operates an own-develop-manage business model. A typical cycle starts from acquiring a site and developing it. Completed projects are either sold or retained in one of Goodman’s funds or partnerships. Goodman typically retains minority stakes in the investment vehicles and continues to manage the sites after completion.

Goodman Group provided a third-quarter update and is on track to meet management's guidance of 9% operating earnings growth for fiscal 2025. However, the uncertain economic environment and trade policies are affecting customers' and capital investors' decision-making.

The real estate sector is not immune to the potential economic impact of US tariffs. There is growing uncertainty as the likelihood of slower Australian gross domestic product growth mounts.

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.

We raise our fair value estimate for narrow-moat Goodman by 4% to AUD 28.00 per security. Fifty percent of the increase is attributed to the AUD 4 billion equity raise, priced above our valuation of AUD 33.50 per security. The other half is because of an upgrade in our fiscal 2025 earnings forecasts.

Goodman operates an own-develop-manage business model. A typical cycle starts from acquiring a site and developing it. Completed projects are either sold or retained in one of Goodman’s funds or partnerships. Goodman typically retains minority stakes in the investment vehicles and continues to manage the sites after completion.

The data center frenzy has just received a reality check from DeepSeek, an artificial intelligence chatbot. It is not just another competing product to ChatGPT. The new product cost only a fraction of what was spent on ChatGPT and took far less time to develop. Oh, and it is completely free to use.

Goodman operates an own-develop-manage business model. A typical cycle starts from acquiring a site and developing it. Completed projects are either sold or retained in one of Goodman’s funds or partnerships. Goodman typically retains minority stakes in the investment vehicles and continues to manage the sites after completion.

We lift our fair value estimate for Goodman to AUD 27 per security from AUD 24, on transfer of coverage to a new analyst. The increase is primarily driven by a lower weighted average cost of capital assumption and our updated outlook for Goodman’s development pipeline.

Narrow-moat Goodman Group’s fiscal 2024 results were broadly in line with our expectations. Operating earnings per security grew 14% to AUD 107.5 cents, up from AUD 94.3 cents last year, above guidance of an 11% increase. Unfranked distributions of AUD 0.30 per security were flat year on year. The company guides to operating earnings rising 9% in fiscal 2025, and our estimate of AUD 1.17 is in line. However, guidance is for distributions per security to be unchanged at AUD 0.30, which equates to a forward yield of less than 1%. Payout ratios will likely remain low in the near term, given the large development pipeline.

Goodman Group is one of the world’s premier developers and managers of industrial property projects and investments. The group was co-founded in Australia by Gregory Goodman who remains CEO, and now has projects and customers in Asia, Europe, and the Americas.