Goodman Reaffirms 9% EPS Growth with 5GW Data Centre Power Bank Expansion

Steady Progress Amid Global Uncertainty

Goodman Group has delivered a solid operational update for the third quarter of fiscal year 2025, reaffirming its forecast for a 9% growth in Operating Earnings Per Share (EPS). Despite a backdrop of geopolitical and economic uncertainty, particularly impacting customer decisions in the logistics sector, the group continues to execute its strategy with confidence.

Long-term structural demand for modern, sustainable logistics facilities remains intact, driven by customers’ focus on productivity enhancements through automation and prime locations. However, the pace of decision-making has slowed due to global trade uncertainties, particularly affecting Mainland China where property fundamentals have softened, contributing to a slight rise in vacancy rates.

Robust Development Pipeline and Portfolio Strength

Goodman’s development work in progress (WIP) stands at an impressive $13.7 billion, with data centres accounting for more than half of this figure. The group’s portfolio occupancy remains high at 96.5%, supported by a 4.5% like-for-like growth in net property income. The weighted average lease expiry (WALE) is a healthy 4.7 years, underscoring the stability of rental income streams.

The group has leased 3.6 million square metres over the past year, generating $523 million in annual rental income. Notably, passing rents have increased faster than market rents, with expected rent reversion now at 16%, down from 17% in December 2024, reflecting strong tenant retention and lease renewals.

Data Centres: The Growth Engine

Goodman’s data centre strategy is a key growth driver, with the global power bank expanded to 5 GW across 13 major cities. Of this, 2.7 GW is secured power, with the remainder in advanced procurement stages. The group is actively engaged with hyperscale operators who are ramping up capital expenditure to meet rising demand for cloud and AI services.

Development commencements for new powered shells and fully fitted data centre projects are expected by June 2026, representing approximately 0.5 GW of power and an estimated end value exceeding $10 billion. These projects span metropolitan areas in North America, Europe, Japan, Australia, and Hong Kong, positioning Goodman at the forefront of digital infrastructure expansion.

Capital Allocation and Strategic Partnerships

With $6.3 billion in available liquidity, Goodman is strategically acquiring large-scale sites that offer long-term regeneration potential. The group continues to collaborate with major infrastructure and real estate investors to secure long-term capital, enhancing financial flexibility and supporting sustained earnings growth.

Goodman’s partnerships and joint ventures remain integral to its capital allocation strategy, particularly in data centres and logistics. The group is exploring new ownership structures and investment vehicles to optimize development origination and divestment timing, ensuring a balanced approach to growth and risk management.

Outlook

Looking ahead, Goodman remains cautiously optimistic. While global economic and trade uncertainties persist, the underlying fundamentals of its portfolio, characterized by low vacancy, positive rental growth, and limited new supply, are expected to support long-term returns. The group’s focus on innovation, sustainability, and strategic asset regeneration positions it well to capitalize on evolving customer needs and technological advancements.