Highlights

• Operating profit surged 15.7% to $2,674.5 million with Operating EPS of 129.9 cents, up 10.1% on FY25.

• Development Work in Progress (WIP) grew to $19.7 billion across 50 projects in 12 countries, with data centres now 78% of WIP.

• Global power bank expanded to 6.4 GW across 16 major cities, underpinning a multi-year data centre development pipeline.

• FY27 Operating EPS growth of 9% targeted, with distribution per security of 30.0 cents declared for FY26.

Goodman Group (ASX:GMG) is the largest property group on the ASX by market capitalisation, owning, developing, and managing logistics properties and data centres in major global cities. Its integrated platform spans property investment, development, and funds management across Australia, New Zealand, Asia, Europe, the UK, and the Americas. With $89.0 billion in total portfolio Assets and $75.4 billion in external AUM, Goodman is a leading global provider of digital and logistics infrastructure.

Recent Development

Released on 20 August 2026, Goodman Group reported FY26 operating profit of $2,674.5 million (up 15.7%) and OEPS of 129.9 cents (up 10.1%). Statutory profit was $2,778.7 million. Development Earnings were the largest contributor at $1,792.2 million, up 34% on FY25, driven by increased on-balance-sheet development activity.

The development WIP grew to $19.7 billion across 50 projects in 12 countries, with data centres representing 78% of WIP and approximately 0.5 GW of data centre developments currently underway across ten projects in eight cities. The global power bank expanded to 6.4 GW across 16 major cities, up from 5.0 GW in FY25. External AUM grew 5% to $75.4 billion, with approximately $3.2 billion of third-party capital raised and four new capital Partnerships established. Portfolio occupancy remained high at 95.6%, and the FY26 distribution was 30.0 cents per security. Gearing remained low at 6.5%.

Sector Context

The intersection of AI infrastructure Demand and urban logistics Scarcity defines Goodman's positioning. Hyperscaler Capital Expenditure continues to accelerate, with cloud providers facing structural undersupply into 2027-28 — directly supporting Goodman's data centre pre-leasing pipeline. Concurrently, automation and robotics drive modern logistics requirements in metro markets. Goodman's control of secured power, scarce urban land, and long-term capital relationships creates barriers to entry that are rising, not falling, as the development cycle lengthens.

Risks and Uncertainties

The rapid shift of WIP toward data centres — now 78% of the pipeline — concentrates development risk in a single Asset Class that is capital-intensive and subject to customer commitment timing. A 20-year Lease for 50 MW in Tokyo and advanced negotiations across multiple sites provide some comfort, but leasing approximately 50% of WIP still requires execution. Gearing rose to 6.5% (19.5% look-through), and with WIP growing over 50% in FY26 alone, funding discipline will be tested. Macro conditions affecting hyperscaler Investment decisions or data centre Economics could delay leasing timelines.

Catalysts to Watch

Progress on data centre leasing — particularly the conversion of approximately 50% of WIP currently in advanced negotiations — is the key near-term catalyst. Establishment of the anticipated Australian development Partnership in 1H FY27 would unlock domestic capital for the data centre pipeline. Delivery of early 2027 data centre completions on time and on budget will validate execution capability. Any new power bank procurement or site acquisitions extending the 6.4 GW power position into new markets would affirm long-term capacity.

Final Thoughts

Goodman Group (ASX:GMG) has deliberately and skillfully positioned itself at the intersection of two of the most powerful structural megatrends — digital infrastructure and urban logistics. Its data centre-led WIP growth, strong capital position, and 9% FY27 OEPS growth target reflect a Business firing on all cylinders. The central question for investors is one of execution pace and leasing conversion in an environment of rapidly rising development ambition.