Highlights

  • Jefferies issued a Buy rating on Goodman Group with a target price of AUD 36.11.
  • Goodman’s European data centre partnership involves up to AUD 14 billion of investment across Tier-1 markets.
  • Development work in progress is projected to exceed AUD 17.5 billion by June 2026, with data centres forming the majority of the pipeline.

Goodman Group (ASX:GMG) has received a Buy rating from Jefferies, with the investment bank assigning a target price of AUD 36.11. The rating was issued on 23 December 2025 and coincided with continued progress across Goodman’s European data centre strategy and development pipeline.

European Data Centre Partnership Expands Portfolio

In December, Goodman announced an agreement with Canada Pension Plan Investment Board (CPP Investments) to establish a European data centre development partnership valued at up to AUD 14 billion. The 50:50 partnership involves an initial capital commitment of AUD 3.9 billion to develop data centre assets across Frankfurt, Amsterdam and Paris.

The partnership portfolio comprises four projects with a combined 435 megawatts of primary power and 282 megawatts of IT load. All projects have secured power connections, planning approvals and advanced site works, enabling construction commencements by 30 June 2026. Settlement of the transaction is expected to occur in phases through to March 2026, subject to customary conditions.

Development Pipeline Remains Elevated

As of 30 September 2025, Goodman reported development work in progress of AUD 12.4 billion, with projected work in progress exceeding AUD 17.5 billion by June 2026. Data centres account for 68% of the current development pipeline, highlighting the increasing weighting of digital infrastructure within the group’s portfolio.

The total property portfolio was valued at AUD 85.9 billion, with portfolio occupancy recorded at 96.1%. Like-for-like annual net property income growth across partnership assets stood at 4.2%, excluding China and Hong Kong.

Goodman reaffirmed its forecast for FY26 operating earnings per share growth of 9%, consistent with prior guidance.

Data Centre Platform Continues to Scale

Goodman’s global power bank remains at 5.0 gigawatts across 13 major cities, comprising secured power and power in advanced procurement stages. Data centres and powered sites delivered over the past 15 years total approximately 0.8 gigawatts, with the majority retained and managed within Goodman partnerships.

Stabilised projects and leased developments under construction contribute approximately AUD 300 million in annual income. The group continues to identify additional sites within its industrial portfolio for potential data centre conversion or expansion.