Bell Potter’s MacFarlane Backs Goodman Group (ASX:GMG) with Buy Recommendation

Sonal Goyal

08 September 2025 04:57 PM AEST

Bell Potter’s MacFarlane Backs Goodman Group (ASX:GMG) with Buy Recommendation

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Highlights

Goodman Group reported an operating profit of AUD 2.31 billion, a 13% year-on-year increase.

Bell Potter Securities’ analyst Andy MacFarlane assigned a Buy rating with a target price of AUD 40.75.

The Group is targeting 9% OEPS growth in FY26, underpinned by expansion in data centres and logistics infrastructure.

Goodman Group (ASX:GMG), a global leader in industrial property and data centre developments, has been reaffirmed with a Buy rating by Bell Potter Securities’ analyst Andy MacFarlane, likely followed by the company’s recent financial results for FY25. MacFarlane has set a price target of AUD 40.75.

FY25 Financial Performance

For the full year ended 30 June 2025, Goodman delivered an operating profit of AUD 2,311.2 million, representing a 13% rise compared with FY24. Operating earnings per security (OEPS) climbed 9.8% to 118.0 cents, while statutory profit stood at AUD 1,666.4 million, a sharp turnaround from the prior year’s loss of AUD 98.9 million.

The Group maintained a low gearing ratio of 4.3% (17.3% on a look-through basis), alongside an interest cover ratio of 47.6x, underscoring its financial resilience. Net tangible assets per security rose 25% to AUD 11.03, supported by significant revaluation gains and operational delivery.

Operational Momentum and Data Centre Growth

Goodman’s total portfolio value reached AUD 85.6 billion, a 9% increase on FY24, with revaluation gains of AUD 1.6 billion across the Group and its partnerships. Portfolio occupancy was a healthy 96.5%, and like-for-like net property income rose by 4.3%.

The company’s development pipeline stood at AUD 12.9 billion across 57 projects, with a forecast yield on cost of 7.5%. Notably, data centres accounted for 57% of the development work in progress, reflecting the Group’s pivot towards digital infrastructure. Goodman’s global power bank capacity has now reached 5.0 GW, with 2.7 GW secured and a further 2.3 GW in advanced procurement stages.

The Group also reported progress on sustainability, with around 350 MW of solar PV installed or committed and consistently high sustainability ratings across benchmarks.

Strategic Outlook

Goodman expects to maintain growth momentum into FY26, targeting 9% OEPS growth which would deliver over AUD 2.6 billion in operating profit. The Group is actively expanding its land bank in key metropolitan areas to support future demand for logistics facilities and data centres.

Analyst Endorsement

Bell Potter’s Andy MacFarlane’s Buy rating and AUD 40.75 target price.

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