Goodman Group reported a slight dip in operating profit for the half year ended 31 December 2025, while statutory profit rose and the total portfolio value expanded to $87.4 billion. The group maintained its interim distribution at 15 cents per security amid ongoing investment in logistics and digital infrastructure.
- Operating profit down 1.5% to $1.2 billion
- Statutory profit increased to $824.7 million
- Total portfolio value rose 2.1% to $87.4 billion
- Gearing reduced to 4.1%, liquidity at $5.2 billion
- Interim distribution steady at 15.0 cents per security
Overview of Financial Performance
Goodman Group, Australia's leading industrial and digital infrastructure property specialist, released its half-year results for the period ending 31 December 2025. The group reported an operating profit of $1,203.5 million, a modest 1.5% decrease compared to the previous corresponding period. Despite this, statutory profit rose to $824.7 million, reflecting solid underlying business performance and effective capital management.
The diluted operating earnings per security fell by 8.3% to 58.5 cents, influenced by timing effects and transactional activity variations. Meanwhile, the interim distribution was maintained at 15.0 cents per security, signalling the group's commitment to providing stable returns to investors.
Portfolio Growth and Asset Quality
Goodman’s total portfolio value increased by 2.1% to $87.4 billion, supported by property valuation gains, acquisitions, and capital expenditure. The portfolio spans 445 properties across 13 countries, including key markets in Asia Pacific, Continental Europe, the UK, and the Americas. Notably, the group’s property investment earnings grew by 17.3%, driven by high occupancy rates of 95.9% and a 4.2% like-for-like rental income growth.
Development work in progress (WIP) expanded to $14.4 billion, with 73% of this relating to data centre projects, reflecting Goodman’s strategic focus on digital infrastructure. The group’s development earnings decreased slightly by 5.1%, largely due to timing of transactions, but project margins remained robust thanks to disciplined risk management and strong customer demand.
Capital Management and Liquidity
Goodman’s balance sheet remains strong, with gearing reduced to 4.1%, well within the group’s policy range. Liquidity stood at $5.2 billion, supported by available debt facilities and cash reserves. The group successfully managed capital through strategic disposals, including a 49% interest sale in the Goodman US Value LP portfolio, and refinanced debt facilities to maintain flexibility.
Net tangible assets per security increased by 1.4% to $11.18, underscoring the group’s asset quality and capital strength. Interest cover improved significantly to 133.1 times, reflecting lower borrowing costs and increased capitalisation of interest expenses to development projects.
Segment and Geographic Performance
Goodman’s operations are diversified across Australia and New Zealand, Asia, Continental Europe, the UK, and the Americas. Property investment earnings were particularly strong in Australia and North America, supported by recent acquisitions and portfolio expansions. Management earnings declined by 29.7%, primarily due to lower transactional and performance-related income, while base management fees increased with higher assets under management.
The group’s data centre power bank grew to 6.0 GW across 16 major cities, positioning Goodman to meet growing digital infrastructure demands. The company continues to invest in technology and automation to enhance productivity and customer service across its logistics assets.
Outlook and Strategic Focus
Looking ahead, Goodman expects ongoing supply constraints in key markets to sustain rental growth and occupancy levels. The group anticipates further expansion of its data centre developments, with WIP projected to reach approximately $18 billion by 30 June 2026. Goodman maintains its target of 9.0% operating EPS growth for the full fiscal year 2026, reflecting confidence in its diversified portfolio and development pipeline.
Management emphasises the importance of partnerships with institutional investors to fund growth and sustain long-term returns. The group remains vigilant on market conditions and risks but is well positioned to capitalise on emerging logistics and digital infrastructure opportunities globally.
Bottom Line?
Goodman’s stable distribution and expanding digital infrastructure pipeline set the stage for sustained growth, but investors should watch for market shifts impacting development timing and valuations.
Questions in the middle?
- How will Goodman’s increasing focus on data centres affect its risk profile and returns?
- What impact could foreign currency fluctuations have on Goodman’s reported earnings and asset values?
- Will management fees rebound as transactional activity normalises in the second half of FY26?