Goodman Group (GMG) Q1 2025 TU earnings summary

Executive summary

• Progress continues in logistics and data center development, leveraging digital economy trends and low vacancy rates, positioning for a strong 2025 with stable property fundamentals and continued demand for prime logistics locations focused on efficiency and productivity.

• Strategy centers on developing essential infrastructure, with a global workbook of AUD 12.8 billion underway in key cities and 42% of development work in progress now data center-related.

• Data center demand remains robust, expected to double over five years, with further growth anticipated in 2025.

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

Financial highlights

• Assets under management stand at approximately AUD 80 billion, with a total property portfolio valued at $78.8 billion and external AUM at $70.1 billion.

• $12.8 billion of development work in progress across 74 projects as of 30 September 2024.

• 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%.

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

Outlook and guidance

• 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.

• Significant development starts expected in 2025, particularly in data centers and industrial assets, with strong activity in Australia, North America, and Japan.

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

• More detailed guidance on 2025 starts to be provided at the February half-year update.

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