Goodman Group Raises $4 Billion to Accelerate $10 Billion Data Centre Expansion

Strong Financial Performance Amid Strategic Growth

Goodman Group has delivered a solid first half for FY25, reporting an operating profit of $1,222.4 million, marking an 8% increase compared to the same period last year. Operating earnings per security (OEPS) rose 7.8% to 63.8 cents, while statutory profit rebounded sharply to $799.8 million from a loss in 1H24. These results underscore Goodman's resilience and effective execution of its global infrastructure strategy.

The Group's total portfolio value climbed 7% to $84.4 billion, supported by $1 billion in revaluation gains and a high portfolio occupancy rate of 97.1%. Like-for-like net property income grew by 4.7%, reflecting strong underlying fundamentals and limited supply in key logistics and data centre markets.

$4 Billion Equity Raising to Fuel Data Centre Ambitions

In a significant capital move, Goodman announced a fully underwritten $4 billion institutional placement priced at $33.50 per security, representing a 6.9% discount to the prior closing price. This placement, alongside a non-underwritten Security Purchase Plan (SPP) targeting up to $400 million, aims to provide the financial flexibility necessary to accelerate the Group's data centre development pipeline and support logistics growth.

Goodman’s CEO, Greg Goodman, highlighted the strategic importance of this equity raising, emphasizing the Group’s readiness to capitalize on the surging demand for data centres driven by cloud computing, AI, and machine learning. The proceeds will fund approximately 0.5 GW of new data centre developments expected to commence by June 2026, with an estimated end value exceeding $10 billion.

Data Centres: The Growth Engine

Data centres now constitute 46% of Goodman’s $13 billion development work in progress (WIP), spanning 68 projects across 12 countries. The Group’s global power bank stands at 5.0 GW across 13 major metropolitan cities, including Sydney, Melbourne, Los Angeles, Tokyo, Paris, Amsterdam, and Hong Kong. Of this, 2.6 GW is secured, and 2.4 GW is in advanced procurement stages on owned or controlled sites.

Goodman is expanding its customer offerings from powered shells to fully fitted facilities with operational solutions, reflecting a sophisticated approach to meet diverse client needs. The Group has also established a new data centre partnership in Continental Europe and strengthened its specialist global data centre team, positioning itself as a leading infrastructure provider in this high-growth sector.

Capital Management and Sustainability Focus

Goodman manages $70.8 billion in external assets under management (AUM), with management earnings up 28% to $462.3 million. The Group continues to optimize capital allocation through partnerships and asset rotation, exemplified by the restructuring of its North America Partnership and the introduction of new capital partners.

On sustainability, Goodman has installed or committed to 343 MW of solar PV globally and maintains strong ESG credentials, including an MSCI ESG rating of 'AA' and a negligible risk rating from Sustainalytics. The Group also invests in social initiatives, including a $10 million partnership to support First Nations communities in Australia.

Outlook: Balancing Growth and Financial Discipline

Despite the dilution impact of the equity raising, Goodman maintains its FY25 OEPS growth guidance at 9%, slightly below the 10% it would have targeted without the capital raise. The Group’s conservative gearing of 16.8% and strong liquidity position provide a solid foundation for executing its growth strategy while managing risk.

Goodman’s focus on essential infrastructure in logistics and data centres positions it well to benefit from constrained supply and robust demand in urban markets. The next 18 months will be critical as the Group advances its $10 billion pipeline of data centre projects and continues to optimize its capital structure to support long-term value creation.