Goodman Group (ASX:GMG), a constituent of the S&P/ASX 200 and one of Australia's largest listed property trusts, released its FY26 full-year results on 20 August 2026, reporting operating profit of $2,675 million, up 15.7% on FY25. Operating Earnings per security (OEPS) grew 10.1% to 129.9 cents. The result was defined by the growing contribution from data centre developments, where Goodman's combination of secured power, scarce urban land, and deep hyperscaler customer relationships has driven its Work-in-progress (WIP) to $19.7 billion — with data centres now comprising 78% of the total development pipeline.

About the Company

Goodman Group is a global integrated property group managing, developing, and investing in industrial, logistics, and digital infrastructure properties across 14 countries. The group manages a total portfolio of $89.0 billion across its own Balance Sheet and a suite of unlisted Investment partnerships (Partnerships) with long-term institutional Capital partners including sovereign Wealth funds and pension funds across Europe, Asia, and North America. Goodman has been active in data centres since 2005 and has deliberately expanded its exposure over the past five years by securing power, land, and customer relationships in major metropolitan markets where barriers to entry are high and rising.

FY26 Results

Operating profit was $2,674.5 million, up 15.7% on FY25. OEPS was 129.9 cents, up 10.1%. Statutory profit was $2,778.7 million. Net tangible assets per security were $11.79, up 7% on FY25. Gearing was 6.5% (4.3% at 30 June 2025) on a balance sheet basis; look-through gearing was 19.5%. Interest Cover ratio was 25.4x. Group Liquidity was $6.4 billion, with $12.4 billion in cash, undrawn lines, and Equity commitments across Partnerships. Total portfolio value was $89.0 billion, up 4%. Revaluation gains of $3.1 billion across the Group and Partnerships ($229.7 million Group share). Portfolio occupancy was 95.6%. Like-for-like net property income (NPI) growth was 4.0%. Cap rates tightened to 5.0%. Average expected future rent reversion to market rents across the portfolio is approximately 10%. WIP was $19.7 billion across 50 projects in 12 countries, with forecast Yield on cost of 8.2%. Data centres comprise 78% of development WIP. Global power bank increased to 6.4 GW across 16 major global cities (FY25: 5.0 GW and 13 cities). Approximately 0.5 GW of data centre developments underway with ten projects across eight global cities. Power bank comprises 3.6 GW of secured power and 2.8 GW in advanced stages of procurement. Approximately 50% of data centre WIP is either leased or in advanced negotiations. A 20-year Lease for 50 MW was recently signed with a hyperscale customer in Tokyo. An Australian development Partnership is expected to be established in 1H FY27.

Distribution

Goodman declared a distribution per security of 30.0 cents for FY26. The group targets FY27 OEPS growth of 9%.

Index Context

Goodman is one of the largest companies in the S&P/ASX 200 by Market Capitalisation and has undergone a significant re-rating as the market has recognised the group's transition from a pure logistics property trust to a global digital infrastructure developer. For S&P/ASX 200 investors, GMG provides exposure to AI infrastructure Demand (through hyperscaler data centre leasing), the structural growth in E-commerce and logistics automation (through industrial property demand), and the Scarcity of well-located urban land and grid-connected power that underpins Goodman's barriers to entry. The company's WIP growing over 50% in a single year to $19.7 billion reflects the extraordinary pace of AI infrastructure capital deployment.

Material Risks and Uncertainties

Data centre development carries material execution risks, including construction complexity, power infrastructure procurement delays, and the risk of customer lease execution timing differing from development timelines. Only approximately 50% of data centre WIP is leased or in advanced negotiations, meaning a significant proportion of the pipeline relies on future customer commitments as construction progresses. Power procurement — the primary constraint on data centre development globally — involves complex negotiations with electricity networks and grid operators, and delays could affect delivery timelines. Gearing on a look-through basis at 19.5% and the balance sheet increase from 4.3% to 6.5% reflects the capital-intensive nature of the expanding WIP program.

Upcoming Milestones

Leasing progression across the approximately 50% of data centre WIP not yet leased or in advanced negotiations will be the most important commercial milestone stream for Goodman over FY27. Completion and commissioning of data centre buildings currently under construction — staged between early 2027 and 2030 — will generate Revenue recognition as projects move from WIP to operational. The establishment of an Australian development Partnership in 1H FY27 will provide additional equity capital to fund future development projects. Progress on the global power bank beyond 6.4 GW — and conversion of the 2.8 GW in advanced stages of procurement into secured power — will expand Goodman's development capacity for the next generation of data centre projects.