Goodman Group Posts 13% Profit Rise, Data Centres Now 57% of Developments
Goodman Group reported a robust FY25 with a 13% rise in operating profit to $2.31 billion, driven by strong data centre development and strategic capital management. The Group targets continued growth with a 9% OEPS increase forecast for FY26.
- Operating profit up 13% to $2.31 billion in FY25
- Data centres represent 57% of $12.9 billion development work in progress
- Global power bank reaches 5.0 GW across 13 major cities
- Raised $4 billion equity to fund growth, especially in data centres
- Portfolio value increased 9% to $85.6 billion with 96.5% occupancy
Strong Financial Performance
Goodman Group has delivered a compelling financial performance for the fiscal year ended June 30, 2025, with operating profit climbing 13% to $2.31 billion and operating earnings per security (OEPS) rising nearly 10%. This marks a significant turnaround from the previous year’s statutory loss, underscoring the resilience of Goodman’s business model amid global economic uncertainties.
The Group’s portfolio value grew by 9% to $85.6 billion, supported by revaluation gains and robust development completions. High occupancy rates of 96.5% and positive rent growth of 4.3% on a like-for-like basis highlight the strength of Goodman’s property fundamentals.
Data Centres, The Growth Engine
Data centres now dominate Goodman’s development pipeline, accounting for 57% of the $12.9 billion work in progress (WIP). The Group’s global power bank stands at 5.0 gigawatts (GW) across 13 major metropolitan markets, with 2.7 GW secured and 2.3 GW in advanced procurement stages. This scale positions Goodman as a key player in the digital infrastructure space, catering to hyperscalers and colocators demanding low-latency, high-barrier-to-entry locations.
Goodman is on track to have 0.5 GW of data centre developments underway by June 2026, supported by newly launched partnerships in Australia, Europe, Hong Kong, and Japan. These capital partnerships not only spread risk but also enhance the Group’s capacity to execute large-scale projects efficiently.
Capital Management and Strategic Positioning
In February 2025, Goodman raised $4 billion in new equity, bolstering its balance sheet and providing ample liquidity to fund its ambitious development agenda. The Group maintains a conservative gearing ratio of 4.3% and an interest cover ratio of 47.6 times, reflecting strong financial discipline.
Goodman’s strategy of rotating capital through partnerships and asset sales, such as the transfer of completed data centres into joint ventures, demonstrates a sophisticated approach to capital recycling and long-term value creation. The addition of Norges Bank Investment Management as a partner in the Goodman North America Partnership further strengthens its investor base.
Sustainability and Outlook
Sustainability remains integral to Goodman’s operations, with the Group on track to retain its Carbon Neutral Organisation certification. Community engagement is also a priority, with $16.7 million donated through the Goodman Foundation in FY25.
Looking ahead, CEO Greg Goodman emphasised the Group’s readiness to capitalise on evolving technology trends and consumer demands. With a strong capital base, strategic land acquisitions, and a growing data centre footprint, Goodman targets 9% OEPS growth in FY26, aiming for operating profits exceeding $2.6 billion.
This outlook assumes stable market conditions but signals confidence in Goodman’s ability to navigate ongoing economic volatility while delivering sustainable growth.
Bottom Line?
Goodman’s FY25 results set the stage for accelerated data centre expansion and sustained earnings growth in FY26.
Questions in the middle?
- How will Goodman balance its rapid data centre expansion with maintaining low leverage?
- What impact will new data centre partnerships have on long-term returns and risk exposure?
- How might global economic uncertainties affect Goodman’s development pipeline and occupancy rates?
