Goodman Group posts 15.7% profit lift as data centres drive WIP to $19.7 billion
Goodman Group (ASX:GMG) has delivered operating profit of $2,675 million for the full year ended 30 June 2026, up 15.7% on FY25, as its accelerating pivot into data centres pushed development work in progress to $19.7 billion.
The result underscores how Australia’s largest listed property group is leveraging structural demand from artificial intelligence (AI) and cloud computing into earnings momentum. Operating earnings per security (OEPS) reached 129.9 cents, up 10.1%, while statutory profit came in at $2,778.7 million.
Data centres now account for 78% of Goodman’s development work in progress (WIP). Looking ahead, the Group is targeting OEPS growth of 9% for FY27.
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FY26 financial results at a glance
The headline metrics point to earnings growth funded from a position of balance-sheet strength, with gearing held towards the bottom of the Group’s policy range.
| Metric | FY26 | vs FY25 |
|---|---|---|
| Operating profit | $2,675M | Up 15.7% |
| OEPS | 129.9c | Up 10.1% |
| Statutory profit | $2,778.7M | — |
| Gearing | 6.5% | 4.3% (FY25) |
| NTA per security | $11.79 | Up 7% |
Supporting balance-sheet detail reinforces the funding narrative:
- Look-through gearing of 19.5%
- Interest cover ratio (ICR) of 25.4x (look-through 9.5x)
- Group liquidity of $6.4 billion, with $12.4 billion available across the Partnerships
- Distribution per security of 30.0 cents for FY26
Data centres — progressing at scale
The pivot into digital infrastructure is the core investment angle behind the FY26 result. Goodman has been active in data centres since 2005, and over the past five years has deliberately deepened its exposure by securing sites, power and capital across major metro markets.
Cloud deployments and AI inferencing require proximity to end users, favouring Goodman’s supply-constrained locations where barriers to entry are high and rising. At 30 June 2026, more than $15 billion of WIP was tied to data centre projects.
Key highlights from the data centre workbook include:
- Approximately 0.5 GW of developments underway across ten projects in eight global cities
- A global power bank of 6.4 GW, comprising 3.6 GW of secured power and 2.8 GW in advanced stages of procurement, up from 5.0 GW in FY25
- Approximately 90% of data centre projects under construction, including associated future expansion land, held within Partnerships
- Approximately 50% of WIP projects either leased or in advanced negotiations
Delivery is staged between early 2027 and 2030, with significant additional power and land capacity available for future phases. Leasing momentum is progressing alongside construction:
- A 20-year lease for 50 MW was recently signed with a hyperscale customer in Tokyo.
- Advanced negotiations for whole buildings are underway across several sites.
- An Australian development Partnership is expected to be established in 1H FY27.
The Tokyo signing involves the first 50 MW phase of the Tsukuba Tech Central campus, a 1 GW development in Greater Tokyo backed by secured TEPCO grid power and exclusive dark fibre routes to the region’s main interconnection points.
What “work in progress” and the power bank mean for investors
Work in progress (WIP) represents the projected end value of active developments. In effect, it is a forward indicator of future earnings, signalling how much development income the Group could recognise as projects reach completion.
The “power bank” refers to secured electricity capacity, measured in gigawatts (GW). Power and land scarcity is the binding constraint on AI and cloud growth, meaning access to grid capacity often determines who can build data centres at scale.
For investors, a larger WIP and a growing power bank point to a longer runway of development earnings. Secured power, in particular, functions as a genuine competitive advantage in a supply-constrained market.
Development and property investment drive the result
Two operational engines powered the FY26 outcome, with development the standout contributor.
Development earnings surge 34%
Development earnings reached $1,792.2 million, up 34% on FY25, driven by increased development activity originated on balance sheet. Goodman commenced $8.1 billion of developments and completed $3.6 billion, of which 89% was leased.
WIP now stands at $19.7 billion across 50 projects in 12 countries, with a forecast development yield on cost of 8.2%. Some 71% of current WIP is being undertaken for Partnerships or third parties.
Property portfolio hits $89 billion
The total portfolio increased 4% to $89.0 billion. Revaluation gains of $3.1 billion were recorded across the Group and Partnerships, of which $229.7 million represented the Group’s share.
Portfolio occupancy remained high at 95.6%, with like-for-like net property income (NPI) growth of 4.0%. Capitalisation rates tightened to 5.0%, while average expected future rent reversion to market rents across the portfolio sits at approximately 10%.
A growing platform and disciplined capital management
Goodman’s external assets under management (AUM) grew 5% to $75.4 billion, with management earnings of $690.1 million. The Partnership platform expanded through approximately $3.2 billion of third-party equity raised and four new capital Partnerships, taking the total to 26.
Financial leverage was kept low, with gearing towards the bottom of the Financial Risk Management policy range at 6.5% (19.5% on a look-through basis) and an ICR of 25.4x. Average Partnership gearing stood at 22.5%, and substantial hedging is in place.
The Partnership model allows Goodman to scale developments without over-stretching its own balance sheet, supporting what management describes as capital-efficient growth across both development and investment opportunities.
Director insight
Group Chief Executive Officer Greg Goodman pointed to structural demand and funding strength as the twin pillars of the result.
Greg Goodman, Group Chief Executive Officer
“Demand is structural across both logistics and data centres. Automation and robotics continue to drive logistics requirements while scarcity of power and land remains the key constraint on AI and cloud growth supporting data centre demand. Hyperscaler capex expectations continue to rise, with many customers facing undersupply into 2027 and 2028. This has encouraged us to progress our development workbook and grow it by over 50% over the year to $19.7 billion, including 0.5 GW of data centre projects underway. We are funding it from a strong capital position, with low gearing and substantial liquidity across the Group and our Partnerships.”
Outlook — targeting 9% earnings growth in FY27
Goodman enters FY27 targeting OEPS growth of 9%, framing a significant opportunity across logistics and data centres over the next five years.
Management identified several forward drivers:
- Cloud growth and the shift from AI training to inference driving demand in metropolitan markets
- Secured power, projects underway and customer agreements advancing across the workbook
- Disciplined capital management, maintaining low leverage and partnering with long-term investors
- An Australian development Partnership expected in 1H FY27
The Group notes that targets are set annually and remain subject to there being no material adverse change in market conditions or the occurrence of other unforeseen events.
During FY26, Goodman also contributed $21 million through the Goodman Foundation and staff contributions to community organisations.
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