Goodman Group (GMG) H1 2025 earnings summary

Executive summary

• Operating profit for H1/HY25 rose 8.4% year-over-year to $1,222.4 million, with statutory profit at $799.8 million, reversing a prior year loss.

• Announced a $4 billion fully underwritten equity raising to fund data centre expansion, enhance financial flexibility, and support the next phase of growth.

• Data centre demand, driven by cloud, AI, and machine learning, is a major growth driver, with 46% of the $13 billion development workbook now in data centres.

• Net tangible assets per security increased 7.3% since June 2024 to $9.44; gearing rose to 16.8% due to North America acquisitions and partnership restructuring.

• Portfolio value increased to $84.4 billion, with high occupancy and robust fundamentals across the industrial portfolio.

Financial highlights

• Operating profit reached $1,222.4 million for the half, up 8.4% year-over-year.

• Operating earnings per security (OEPS) up 7.8% to 63.8 cents; distribution per security maintained at 15.0 cents for H1/HY25.

• Statutory profit of $799.8 million, up from a $220.1 million loss in the prior period.

• Management earnings rose 28% to $462.3 million, with higher performance and transactional revenues.

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

Outlook and guidance

• Maintains 9% operating EPS growth forecast for FY25, including the impact of the capital raising.

• Distribution forecast remains at 30.0 cents per security for FY25.

• Strong development workbook and global opportunity set position the group well for the remainder of FY25.

• Demand for data centres remains robust, with supply constraints expected to drive rental growth and high occupancy.