Goodman Q1 FY27 operational update: $19.7 billion work in progress and 6.6 GW power bank
In its Q1 FY27 operational update for the three months to 30 September 2026, Goodman Group reported a total portfolio of $90.0 billion, development work in progress (WIP) of $19.7 billion across 51 projects, and a global power bank of 6.6 GW, of which 3.6 GW is secured. The update was released on 4 November 2026.
The company is targeting FY27 operating earnings per share (EPS) growth of 9%, with a distribution target of 30.0 cents per security. Forecasts are subject to there being no material adverse change in market conditions or the occurrence of other unforeseen events.
The FY26 full year results set the baseline for these targets, showing operating EPS of 129.9 cents, headline gearing of 6.5% and $6.4 billion of liquidity available to fund the development program.
Headline figures as at 30 September 2026:
- $90.0 billion total portfolio
- $19.7 billion development WIP
- 6.6 GW total power bank
Greg Goodman, CEO
“As barriers to entry continue to rise, Goodman’s global position and disciplined approach provides a competitive advantage. We have the scale, capability and capital to deliver for the long-term.”
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Development pipeline stays on track in Q1 FY27
Work in progress snapshot
Goodman reported that its development program remains on track, supported by demand from logistics customers for next-generation warehouses and from hyperscale and enterprise customers for data centre capacity. Scarcity of sites, power and infrastructure, together with greater planning complexity, are constraining future supply.
Yield on cost on current WIP is 8.3%, and the annualised production rate is approximately $7.5 billion. Data centres under construction make up 79% of WIP, and 68% of WIP is either pre-sold or being built for third parties or Goodman’s Partnerships.
WIP is 31% pre-committed. Goodman said this reflects the growth in the data centre workbook, which is primarily commenced before customer contracts are executed.
Quarter activity
Completions for the quarter totalled $0.6 billion at a 7.2% yield, while commencements were $0.4 billion at a 9.1% yield.
| Q1 FY27 development statistics | Completions | Commencements | Work in progress |
|---|---|---|---|
| Value ($bn) | 0.6 | 0.4 | 19.7 |
| Yield (%) | 7.2 | 9.1 | 8.3 |
| Pre-committed (%) | 97 | 71 | 31 |
| Weighted average lease term (years) | 10.6 | 9.0 | 14.8 |
Completions and commencements are for the three months to 30 September 2026. WIP by region was:
- 40% Continental Europe / UK
- 21% Australia / New Zealand
- 20% Asia
- 19% Americas
Goodman expects the supply constraints to drive rental growth and the value of existing assets, particularly in locations where zoning and power are in place.
Data centres: 0.5 GW in WIP with leasing advancing
Power bank and delivery
Goodman’s power bank increased to 6.6 GW, with 3.6 GW secured, 0.5 GW in WIP and 0.7 GW delivered. All WIP projects benefit from secured power connections and planning approvals.
Projects are on track with staged delivery between early 2027 and 2030. They are situated within campuses that offer 1.3 GW of potential expansion.
Funding and leasing
Approximately 90% of the data centre projects under construction in WIP, including associated future expansion capacity, are held in data centre or development Partnerships. Goodman said capital is secured and in place to fund current project commitments.
Advanced negotiations are underway to secure full-building commitments to hyperscale customers on several sites. Other projects in WIP are in active discussions with customers.
| Project | Location | Ownership | WIP (MW) |
|---|---|---|---|
| TYO05 | Tokyo, Japan | GJDP | 50 |
| AMS01 | Amsterdam, Netherlands | GEDCDP1 | 38 |
| PAR01 | Paris, France | GEDCDP1 | 35 |
| FRA02 | Frankfurt, Germany | GEDCDP1 | 45 |
| MAD01 | Madrid, Spain | GMG | 9 |
| PAR02 | Paris, France | GEDCDP1 | 80 |
| Total | n/a | n/a | 497 |
TYO05, the first building (50MW) of a multi-building campus in Tokyo, is leased to a single hyperscale customer. Discussions and negotiations on PAR02 are expected to accelerate in early 2027 as construction progresses towards First Phase RFS.
The tenant’s 20-year hyperscale lease was announced in August, and the linked coverage details the TEPCO grid power and exclusive dark fibre routes behind the campus, which is planned to scale to 1 GW.
How data centre development works and why barriers to entry matter
A power bank is the capacity of electricity Goodman has accessed or is pursuing across its sites, and secured power is the portion with confirmed access. WIP refers to projects currently under construction.
Goodman said it is commencing projects and building into strong structural demand. Progressing developments provides increased certainty of costs and delivery before commercial negotiations with customers are completed, and definitive ready-for-service dates give customers a shorter time to market.
Goodman described data centre development as a multi-year, capital intensive process requiring co-ordination of power, land, approvals and customer commitments. The scale of funding required further raises barriers to entry.
Property investment and capital strength
Industrial fundamentals
Goodman reported the following key highlights at 30 September 2026:
- Annual like-for-like (LFL) net property income (NPI) growth of 4.0% (6.2% ex Greater China)
- Portfolio occupancy of 95.5% (96.7% ex Greater China)
- Portfolio weighted average lease expiry (WALE) of 4.9 years
- 4.1 million sqm leased over the 12 months to 30 September 2026, equating to $602 million of rental income per annum
- Positive valuations in the quarter
The average expected rent reversion to market across the global portfolio remains positive at approximately 10%. LFL reversion in China remained negative as market rents continued to reset, although Goodman said it has recently seen a significant increase in leasing activity.
Management platform
Partnership assets under management (AUM) increased by $1.0 billion over the quarter to $76.1 billion, driven primarily by development capex and revaluations. The weighted average cap rate across the Group and Partnership portfolios was 4.9%.
Goodman raised US$455 million for the Goodman Hong Kong Data Centre Partnership, adding two new investors.
| Region | Total portfolio ($B) |
|---|---|
| Australia | 35.6 |
| Hong Kong | 13.6 |
| USA | 11.4 |
| Continental Europe | 11.0 |
Greg Goodman, CEO
“…We expect growing demand and constrained supply to continue to support rental growth, creating further opportunities to develop our assets, and grow the value of our business around the world…”
What to watch next for Goodman
- Data centre project delivery: staged between early 2027 and 2030.
- PAR02 customer discussions: expected to accelerate in early 2027 as construction progresses towards First Phase RFS.
- FY27 targets: operating EPS growth of 9% and a distribution of 30.0 cents per security, subject to there being no material adverse change in market conditions.
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