Goodman 1st Half Net Profit Rises, Keeps Annual Earnings Growth Goal Unchanged

By David Winning

SYDNEY--Goodman said first-half net profit rose by 3.1% and it kept guidance for annual earnings growth unchanged as hyperscalers try to build their artificial-intelligence networks faster, stoking demand for data centers that they can lease.

Goodman, which owns a property portfolio in countries spanning the U.S. to Australia, reported a net profit of 824.7 million Australian dollars (US$584.5 million) in the six months through June, up from A$799.8 million at the corresponding stage of a year earlier. Its operating profit was A$1.20 billion.

Goodman said it continues to expect 9% growth in operating earnings per security in the 12 months through June.

Goodman has been bullish about its strategy of increasingly focusing on data centers as an engine for future profit growth, noting that its larger customers want more advanced facilities close to major cities.

The company aims to have begun construction of 10 data centers by the end of June, including facilities in Los Angeles, Hong Kong and Sydney. Combined, the data centers would have capacity of 0.5 gigawatts with an estimated end value of around A$13 billion if Goodman chooses not to bring in a partner. It says those sites could be expanded in future to grow capacity by an additional 1.3 GW.

Goodman's projects come against a backdrop of surging investment in the infrastructure that houses the racks of graphic-processing units and hardware that train and run AI systems. Real-estate firm JLL predicts that North America could see US$1 trillion worth of new construction of data centers between 2025 and 2030.

Data centers now represent 73% of a development workbook worth some A$14.4 billion. Its total power bank has reached 6.0 gigawatts, and Goodman continues to look at sites across its existing industrial portfolio that could be used as data centers.

Still, experts caution that the rapid industry rollout of data centers could face challenges such as competition for labor and higher electricity costs. Also, investors are sensitive to technological advances which could soften demand for the computing systems that power AI in time.

"Demand for digital infrastructure in our markets is expected to materially exceed supply over the foreseeable future," Chief Executive Greg Goodman said. "Goodman has a significant opportunity to develop into this strong demand, given our metropolitan sites, significant power bank, strong capital position and expertise in complex infrastructure."

Goodman said its property was 95.9% occupied at the end of December, with like-for-like net property income growth of 4.2% over the past six months. Its total portfolio was worth A$87.4 billion.

Its gearing--a measure of debt relative to equity--was 4.1% at the end of December, down from 4.3% at the end of June. On a look-through basis, gearing was 17.8%.

Write to David Winning at david.winning@wsj.com

(END) Dow Jones Newswires

February 18, 2026 16:46 ET (21:46 GMT)