How Goodman’s $12.4bn Pipeline Fuels 9% EPS Growth Ambition
Goodman Group reports robust progress in Q1 FY26 with a $12.4 billion development pipeline dominated by data centres, reaffirming a 9% operating EPS growth forecast. The group is advancing logistics automation and expanding data centre capacity across key global markets.
- Development work in progress at $12.4 billion, 68% in data centres
- Total property portfolio valued at $85.9 billion with 96.1% occupancy
- Reaffirmed FY26 operating EPS growth forecast of 9%
- Data centre power bank maintained at 5.0 GW across 13 global cities
- Active capital raising for data centre partnerships in Europe and Australia
Strong Development Momentum
Goodman Group has reported a solid start to FY26, with $12.4 billion of development work in progress (WIP) as of 30 September 2025. This figure is expected to rise to over $17.5 billion by June 2026, driven largely by data centre projects which now represent 68% of the WIP. The group’s strategy to focus on essential infrastructure, particularly in logistics and digital infrastructure, is clearly paying off as it advances multiple projects globally.
Logistics customers are increasingly investing in AI and robotics to automate and enhance productivity, prompting a consolidation trend towards larger, more sophisticated facilities in prime locations. Goodman’s portfolio benefits from minimal vacancy and limited new supply, positioning it well to capture growth in this sector.
Data Centre Expansion Across Key Markets
Goodman is aggressively expanding its data centre footprint across major metropolitan markets including Australia, Japan, Hong Kong, Europe, and North America. The group maintains a global power bank of 5.0 gigawatts (GW), with 3.4 GW secured and an additional 1.6 GW in advanced procurement stages. These data centres cater to hyperscale and colocation customers, reflecting the surging demand for cloud and AI-related infrastructure.
Notable projects include campuses in Paris (PAR01 and PAR02), Frankfurt (FRA02), Amsterdam (AMS01), Los Angeles (LAX01), Tokyo (TYO05), Hong Kong (HKG09 and HKG10), Madrid (MAD01), and Sydney (SYD01). Goodman is targeting significant data centre commencements in FY26, aiming to increase data centre WIP power capacity to approximately 0.5 GW by June 2026.
Robust Portfolio Fundamentals and Financial Outlook
The total property portfolio stands at $85.9 billion with a high occupancy rate of 96.1%, underscoring strong underlying property fundamentals. Like-for-like net property income grew by 4.2% annually, supported by positive rental growth and low vacancy rates. The weighted average lease expiry (WALE) remains healthy at five years, providing income stability.
Goodman reaffirmed its FY26 operating earnings per security (EPS) growth forecast of 9%, reflecting confidence in its development pipeline and market positioning. The group’s liquidity and capital raising efforts, particularly for data centre partnerships in Europe and Australia, provide financial flexibility to support ongoing and future projects.
Strategic Positioning for Future Growth
Looking ahead, Goodman expects industrial development opportunities to increase in FY27 as customers continue to invest in supply chain technology and automation. The group is actively acquiring and pursuing large-scale sites to accommodate this infrastructure build-out. Its flexible design and commercial approach in data centres, offering options from powered shells to fully fitted facilities, enhances its ability to meet diverse customer needs.
Goodman’s focus on portfolio optimisation includes monetising residential opportunities and developing multi-storey logistics assets, further diversifying its income streams. The group’s active partnerships and capital rotation strategy aim to maximise value for investors and partners alike.
Bottom Line?
Goodman’s strategic focus on data centres and logistics automation positions it well for sustained growth, but execution of its ambitious pipeline will be key to delivering on its 9% EPS growth target.
Questions in the middle?
- How will Goodman manage potential supply chain or regulatory risks impacting its global data centre projects?
- What impact will rising interest rates or inflation have on Goodman’s development costs and yields?
- How successful will Goodman be in raising equity capital for its new data centre partnerships in Europe and Australia?
