Goodman Group (ASX:GMG), a global owner, developer and manager of industrial property and data centres, has recorded a decline in its security price over the past year despite higher operating profit. Goodman Group (ASX:GMG) securities were priced at $26.13, down 0.65% in today’s session, and are down 23.01% over the past year. The group released its results for the year ended 30 June 2026 (FY26) on 20 August 2026.

For context, the S&P/ASX 200 Real Estate index [XRE] (INDEXASX: XRE) stood at 3,202.90, up 1.11% (+35.20 points) in today’s session as of 6 Oct, 4:45 pm, and is down nearly 22% over the past year.

Business Model and Operational Footprint

Goodman operates through three activities: property investment, development and management. It owns and develops logistics and industrial facilities in high-barrier urban locations, and manages Capital on behalf of Investment partners through a platform of 26 Partnerships. Its external Assets under management were $75.4 billion at 30 June 2026, within a total portfolio of $89.0 billion.

The group operates across multiple countries, with 50 development projects in 12 countries. Its data centre activity, which it states began in 2005, now accounts for 78% of development work in progress (WIP). Goodman holds a global power bank of 6.4 GW across 16 major cities, consisting of 3.6 GW of secured power and 2.8 GW in advanced stages of procurement. Around 90% of data centre projects under construction, including expansion land, are held within Partnerships.

Sector Dynamics

Industrial and logistics property is influenced by tenant demand, automation requirements, construction costs and Capitalisation rates, while data centres add dependence on power availability, land and the Capital Expenditure of cloud and AI customers. Goodman states that Scarcity of power and land is the key constraint on AI and cloud growth, and that many customers face undersupply into 2027 and 2028.

The S&P/ASX 200 Real Estate index is down nearly 22% over the past year, and listed property securities have moved with Interest Rate expectations and valuation changes. Goodman’s 23.01% decline compares with falls of 33.07% for Stockland (ASX:SGP) and 18.13% for GPT Group (ASX:GPT). Today Goodman securities are down 0.65%, while the index is up 1.11%.

Relative to the index, Goodman Group’s one-year decline of 23.01% is about 1.0 percentage points larger than the index’s decline of nearly 22%, while its move today is down 0.65% against the index’s 1.11% rise.

FY26 Results Release

Operating profit was $2,674.5 million, up 15.7%, and operating Earnings per security were 129.9 cents, up 10.1%. Statutory profit was $2,778.7 million. Distribution per security was 30.0 cents. Net tangible assets per security rose 7% to $11.79. The group is targeting FY27 operating earnings per security growth of 9%.

Development earnings were $1,792.2 million, up 34%. WIP rose to $19.7 billion, with a forecast Yield on cost of 8.2%, and the group commenced $8.1 billion of developments and completed $3.6 billion, which were 89% leased. About 50% of projects in WIP are leased or in advanced negotiations, including a 20-year Lease of 50 MW with a hyperscale customer in Tokyo. Property investment income rose 7% to $722.1 million, occupancy was 95.6%, like-for-like net property income growth was 4.0% and valuations rose by $3.1 billion, with capitalisation rates tightening to 5.0%.

Management earnings were $690.1 million, with $3.2 billion of third-party capital raised and four new Partnerships formed. Gearing was 6.5% (19.5% on a look-through basis) and Interest Cover was 25.4x. The group reported Liquidity of $6.4 billion, and an Australian development Partnership is expected to be established in the first half of FY27.

Goodman’s CEO Greg Goodman said that Demand is structural across logistics and data centres, citing automation and robotics in logistics and scarcity of power and land in data centres. The group holds $6.4 billion of liquidity, with $12.4 billion in cash, undrawn lines and Equity commitments across the Partnerships, and states that it is funding development from a low-gearing balance sheet. It also reports progress against sustainability targets and expanded community support through the Goodman Foundation.

Growth Catalysts and Critical Operating Risks

Growth catalysts identified include delivery of the $19.7 billion WIP between early 2027 and 2030, conversion of the power bank into projects, leasing of data centre buildings under negotiation, an expected average rent reversion of about 10% across the logistics portfolio, and new capital Partnerships.

Operating risks include concentration of development activity in data centres, which make up 78% of WIP and more than $15 billion of projects, with delivery staged to 2030 and leasing still in progress for around half of the projects. Goodman expects to operate some fully fitted facilities for customers, which adds operating exposure. Lower transactional and performance fees partly offset management income. Earnings depend on hyperscaler capital spending, power procurement, construction costs, interest rates and valuations.

Where Things Stand

Goodman reports higher operating profit, a larger development pipeline and low gearing, while its securities remain lower over twelve months. Reference points ahead include progress on data centre leasing, the Australian Partnership and FY27 earnings relative to its 9% growth target.