Goodman Group (GMG) H2 2024 earnings summary

Executive summary

• Achieved FY24 operating profit of $2,049.4M (over AUD 2 billion), up 15% year-over-year, with operating EPS up 14%, driven by strong logistics and data center demand in key global cities.

• Statutory loss of $98.9M due to negative property revaluations and non-cash items.

• Maintained high occupancy at 97.7% and robust development pipeline, with data centers now 40% of work in progress.

• Group NTA declined 3.5% to $8.80 per security, reflecting cap rate expansion and asset revaluations.

• Strategic focus on high-barrier, supply-constrained markets, with a global power bank of 5 gigawatts and emphasis on sustainability, including renewable power procurement and AUD 13.5 million contributed to community initiatives.

Financial highlights

• Operating profit of $2,049.4M (+15% vs FY23); operating EPS 107.5c (+14%).

• Statutory loss of $98.9M, driven by $1.5B share of negative property revaluations.

• Management revenue increased by AUD 296 million, with total fee revenue at 1.2% of average stabilized third-party AUM.

• Performance and transactional revenues reached AUD 331 million, up from AUD 42 million last year.

• Distribution per security steady at 30.0c; NTA per security $8.80 (-3.5%).

Outlook and guidance

• FY25 operating EPS growth expected at 9%, targeting over AUD 2.2 billion in operating profit.

• Distribution per security to remain at 30.0c.

• Third-party stabilized AUM expected to grow, with long-term fee revenue guidance above 0.9% of AUM.

• Significant ramp-up in data center developments anticipated over the next 18 months, with WIP expected to increase.

• Ongoing capital rotation and supply constraints expected to support rental growth and high occupancy.