Goodman Group (GMG) H1 2026 earnings summary

Executive summary

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

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

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

• Established major new partnerships: $14 billion European data centre JV, $2 billion North American logistics JV, and more planned.

• Targeting 9% operating EPS growth for FY26.

Financial highlights

• Operating profit for H1/HY26 was $1,203.5 million, exceeding prior guidance but down 1.5% year-over-year; statutory profit rose to $824.7 million.

• FX movements negatively impacted operating income by $33 million, offset by lower borrowing costs.

• Direct property net rental income rose by $59 million, driven by increased directly owned assets.

• Management income fell by $137 million year-over-year, mainly due to lower transactional and performance-based revenues.

• Net tangible assets per security: $11.18, up 1.4% since June 2025.

Outlook and guidance

• Targeting FY26 operating EPS growth of 9% and a full-year distribution of 30.0 cents per security.

• WIP expected to exceed $18 billion by June 2026, with increasing data centre development and higher margins.

• Expecting continued growth in third-party stabilized AUM as developments complete and new acquisitions are made.

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