How Goodman’s $2.31B Profit Boost Fuels Data Centre Expansion
Goodman Group delivered a robust FY25 performance, with operating profit rising 13% to $2.31 billion and a 9.8% increase in operating earnings per security. The company’s expanding data centre portfolio and strong capital position set the stage for continued growth.
- Operating profit up 13% to $2.31 billion
- Operating EPS growth of 9.8% to 118 cents
- Net tangible assets increased 25% to $11.03 per security
- Raised $4 billion in new equity, reducing gearing to 4.3%
- Development pipeline of $12.9 billion, 57% in data centres
Strong Financial Performance
Goodman Group has reported a solid financial year ending June 2025, with operating profit climbing 13% to $2.31 billion and operating earnings per security (OEPS) increasing by 9.8% to 118 cents. This growth underscores the company’s successful strategy of investing in essential infrastructure to support the expanding digital economy.
The Group’s net tangible assets (NTA) surged 25% to $11.03 per security, reflecting both asset revaluations and development progress. Statutory profit stood at $1.7 billion, supported by positive property valuations and strong rental income growth.
Robust Capital Management and Liquidity
Goodman strengthened its balance sheet by raising $4 billion in new equity during the year, significantly enhancing its capacity to fund growth initiatives. This capital raise helped reduce gearing to a conservative 4.3%, down from 8.4% the previous year, while maintaining a healthy interest cover ratio of 47.6 times on a look-through basis.
The Group also holds $6.6 billion in cash and undrawn credit lines, providing ample liquidity to support ongoing development and investment activities. Financial risk management remains disciplined, with 92% of interest payments hedged over the next three years, underpinning stability amid market uncertainties.
Expanding Data Centre Footprint
Data centres now represent 57% of Goodman’s $12.9 billion work in progress (WIP), highlighting the company’s strategic pivot towards digital infrastructure. The Group has secured 2.7 gigawatts (GW) of power across its global data centre portfolio, part of a 5 GW global power bank spanning 13 major cities.
Goodman has launched new data centre partnerships in Hong Kong and Australia, with plans to establish a European partnership in FY26. These partnerships aim to accelerate development and long-term ownership of data centre assets, catering to growing demand driven by cloud computing, artificial intelligence, and low-latency applications.
Recent project commencements include sites in Los Angeles, Paris, and Sydney, with approximately 0.5 GW of new data centre projects expected to be underway by mid-2026. The Group is also advancing infrastructure works such as power connections and substation construction to enhance speed to market.
Sustainability and ESG Commitments
Goodman continues to integrate sustainability into its operations, progressing towards certification as a Carbon Neutral Organisation for FY25. The Group has increased solar photovoltaic installations to approximately 350 megawatts and is committed to Science Based Targets initiative (SBTi) validated greenhouse gas reduction goals aligned with the Paris Agreement.
Environmental, social, and governance (ESG) credentials remain strong, with an MSCI rating of ‘A’ and a Sustainalytics risk rating of ‘Negligible’. The company’s social initiatives include significant community investments and a focus on diversity, with 30% of senior executives globally being female.
Outlook and Strategic Positioning
Looking ahead, Goodman targets operating EPS growth of 4.9% for FY26 and plans to maintain its distribution at 30 cents per security. The Group’s substantial development pipeline, particularly in data centres, combined with its strong capital position, positions it well to capitalise on ongoing demand for digital and logistics infrastructure.
Goodman’s strategy of active capital rotation, partnership expansion, and disciplined financial management aims to deliver sustainable long-term earnings growth while navigating market uncertainties.
Bottom Line?
Goodman’s FY25 results reinforce its leadership in digital infrastructure, setting a confident tone for growth amid evolving global demand.
Questions in the middle?
- How will Goodman’s new data centre partnerships impact its long-term capital allocation?
- What risks could affect the Group’s ability to sustain rental growth in supply-constrained markets?
- How might global economic conditions influence Goodman’s development pipeline and capital management strategy?