Goodman Group (GMG) Q3 2025 TU earnings summary

Executive summary

• Strong quarter driven by sustained demand for logistics, automation, and data centers, despite delays in customer decisions due to economic and trade uncertainty.

• Data center demand is rising, especially for cloud and AI services, with significant development in metro areas and expansion of a global power bank.

• Strategic acquisitions, such as a second land parcel in Luton, UK, and ongoing acquisition of large-scale sites, are expanding the development pipeline.

• Focus remains on execution, with major infrastructure works, hiring, and emphasis on high-quality, sustainable infrastructure in key global cities.

• Substantial liquidity of $6.3bn supports ongoing development, capital partnerships, and asset rotation to fund sustainable earnings and optimize asset value.

Financial highlights

• Total portfolio value stands at $86 billion, with $13.7 billion of development work in progress across 66 projects as of 31 March 2025.

• Data centers represent over 50% of WIP; positive rental reversion and high occupancy maintained.

• FY25 operating EPS growth forecast reiterated at 9%, equating to over $2.2 billion in operating profit and a full-year distribution of 30cps.

• 4.5% like-for-like annual net property income growth in Partnerships; 96.5% occupancy rate.

• Leased 3.6 million sqm over 12 months, generating $523m in annual rental income.

Outlook and guidance

• Substantial data center development commencements expected through June 2026, driven by hyperscale operator demand.

• Supply constraints in key locations are expected to support rental growth and high occupancy.

• Development activities forecast to provide attractive margins and maintain high occupancy.

• Ongoing focus on capital partnerships to share risk and fund large-scale developments.

• Full-year distribution of 30cps reaffirmed.