Goodman Group (GMG) Q1 2025 TU earnings summary

Executive summary

• Progressed logistics and data center opportunities, leveraging digital economy trends and low vacancy rates, positioning for a strong 2025 with stable property fundamentals and robust demand for prime logistics locations.

• Global development workbook stands at AUD 12.8 billion across 74 projects as of 30 September 2024, with significant activity in key cities worldwide.

• Data centers now represent 42% of development work in progress, with demand expected to double over five years and further growth anticipated in 2025.

• Evolving delivery capabilities to include fully fitted, operational solutions, and upskilling teams globally.

• Customer demand is moderate but supported by supply chain enhancements and productivity focus.

Financial highlights

• Assets under management are around AUD 80 billion, with the total property portfolio valued at $78.8 billion.

• Like-for-like rental growth is close to 5%, with 4.9% like-for-like net property income growth in Partnerships year-over-year.

• Portfolio occupancy remains high at 97.4%.

• FY2025 operating EPS growth forecast at 9%, equating to over $2.2 billion in operating profit and a full-year distribution of $0.30 per share.

• 2.7 million sqm leased over 12 months, generating $404 million in annual rental income.

Outlook and guidance

• Substantial development starts expected in 2025, particularly in data centers and industrial assets, with further guidance to be provided at the February half-year.

• Confirms FY2025 operating EPS growth of 9% and full-year distribution of 30cps.

• Stable property fundamentals and high occupancy expected to support future rental growth and development activity.

• Anticipates continued attractive margins in development activities, supported by resilient warehouse rents and limited supply.

• Guidance is subject to no material adverse market changes or unforeseen events.