Goodman Group (GMG) H1 2026 earnings summary

Executive summary

• Delivered operating profit of AUD 1.2 billion (or $1,203.5 million) for H1/HY26, slightly ahead of expectations, with statutory profit of $824.7 million and strong capital partnering.

• Work in progress (WIP) reached AUD 14.4 billion ($14.4B), with data centres comprising over 70% (73%) of WIP and expected to exceed AUD 18 billion by June 2026.

• Major partnerships established: AUD 14 billion ($14B) European data centre and AUD 2 billion ($2B) North American logistics, with Australian partnership in progress.

• Maintained high occupancy at 95.9% and a weighted average lease expiry (WALE) of 4.9 years across an AUD 87.4 billion ($87.4B) total portfolio.

• Power bank expanded to 6 GW across 16 global cities, with major growth in Australia and Europe.

Financial highlights

• Operating profit for the half was AUD 1.2 billion ($1,203.5M), exceeding prior guidance; statutory profit was $824.7M.

• Operating EPS was 58.5 cents per security, down 8.3% year-over-year; distribution per security was 15.0 cents.

• Group net tangible assets (NTA) increased to $11.18 per security, up 1.4% since June 2025.

• Gearing at 4.1% (headline), with $5.2 billion in liquidity and weighted average debt maturity of 5.3 years.

• Direct property net rental income rose by AUD 59 million, mainly from increased directly held assets post-Americas reorganization.

• Management income/earnings fell by AUD 137 million (down 29.7%) year-over-year, mainly due to lower transactional and performance-based revenues.

• Total portfolio at AUD 87.4 billion ($87.4B), with $75 billion in external AUM; stabilized third-party AUM up $4 billion year-over-year.

• Realized development earnings down AUD 36 million year-over-year, with FX rates causing a $26 million adverse impact.

• Net interest income increased by AUD 63 million year-over-year.

• Gross interest paid rose by AUD 14 million due to higher rates and bond refinancing; net WACD is around 1% after hedges.

• Over AUD 250 million in unrealized valuation gains, offset by prior period deductions, resulting in a net deduction of AUD 112 million.

Outlook and guidance

• Targeting 9% operating EPS growth for FY2026, with a full-year distribution of 30.0 cents per security.

• WIP expected to exceed AUD 18 billion ($18B) by June 2026, with continued capital rotation and partnership model expansion.

• Demand for digital infrastructure, especially data centres, expected to materially exceed supply, supporting long-term growth.

• Ongoing supply constraints in key markets anticipated to support rental growth and high occupancy.

• Higher-than-average margins anticipated due to longer project durations and increased data center focus.