Goodman Group (GMG) H1 2025 earnings summary

Executive summary

• Operating profit for 1H25 rose 8.4% to $1,222.4 million, with statutory profit at $799.8 million, reversing a prior year loss.

• Announced a $4.0 billion fully underwritten equity raising and up to $400 million SPP to fund data centre growth and enhance financial flexibility.

• Net tangible assets per security increased 7% to $9.44; gearing rose to 16.8% due to US Partnership restructuring.

• Data centre strategy advanced, with 5.0 GW global power bank and 2.6 GW secured; new projects to commence by June 2026.

• High occupancy (97.1%) and strong development pipeline ($13.0 billion WIP, 64% pre-committed, 6.7% yield on cost).

Financial highlights

• Operating earnings per security (OEPS) up 7.8% to 63.8 cents; statutory profit of $799.8 million, up from a $220.1 million loss in 1H24.

• Distribution per security maintained at 15.0 cents for 1H25.

• Total portfolio value increased 7% to $84.4 billion; like-for-like net property income growth of 4.7%.

• Management earnings rose 28% to $462.3 million, with higher performance fees.

• Development earnings for the half were $700.7 million, down year-over-year but up sequentially.

Outlook and guidance

• Maintains 9% OEPS growth forecast for FY25, including impact of new securities; would have been 10% without equity raising.

• FY25 distribution forecast remains at 30.0 cents per security.

• Positive outlook driven by strong data centre demand and constrained supply in key locations.

• Proceeds from equity raising to provide working capital and flexibility for accelerated data centre construction.

• Guidance assumes no material adverse changes in market conditions.