Goodman Group (ASX: GMG) has provided an update on its performance and progress across its logistics and data centre projects, supported by long-term structural drivers in the digital economy.
Key Highlights:
- Development Work in Progress (WIP):
- Goodman has $12.8 billion in WIP, spread across 74 projects, with 42% of the WIP dedicated to data centres.
- Data centres are expected to play an increasingly important role in the Group’s portfolio, contributing to future growth.
- Industrial Property:
- Customer demand for industrial space remains moderate, influenced by global economic conditions. However, there is ongoing demand for more efficient, scalable warehousing solutions to improve productivity and support supply chain enhancements.
- Occupancy rates across Goodman’s portfolio remain high at 97.4%, with a 4.9% increase in net property income (NPI).
- The global property portfolio is valued at $78.8 billion, with a forecast 9% growth in FY25 Operating EPS.
- Development and Data Centre Strategy:
- Goodman’s development strategy continues to focus on logistics and data centre infrastructure. As part of this, Goodman has secured 2.6 GW of power for its data centre projects and is progressing with planning and infrastructure works to meet customer demand.
- The Group is focused on turnkey solutions, including providing fully fitted data centre facilities alongside traditional warehouse developments.
- Partnerships and AUM:
- The Group’s assets under management (AUM) remained stable, with a slight increase in the total portfolio to $78.8 billion, including $70.1 billion of external AUM.
- Capital partners are being sought for data centres and logistics developments, reflecting growing investor interest in operational assets, especially data centres.
Sustainability:
Goodman continues to monitor and enhance its sustainability performance, submitting data to the Global Real Estate Sustainability Benchmark (GRESB). Notable achievements include:
- A score of 92 in the Development Benchmark, with several regional and global partnerships achieving Sector Leader status for industrial developments.
Outlook:
- Goodman expects stable property fundamentals, with strong demand for industrial and data centre spaces. Supply constraints and limited competition are expected to drive future rental growth and development activity.
- The Group is well-positioned to capitalize on the growing demand for data centres, supported by its extensive power bank and proven delivery capabilities.
- The forecast for FY25 Operating EPS growth is 9%, with a full-year distribution of 30 cents per share (cps).
Greg Goodman, Group CEO, highlighted the Group’s readiness to meet customer demand through its significant development pipeline and long-term growth strategy in both logistics and data centre sectors. The Group’s landbank and development activities are expected to support future expansion, with substantial new starts in 2025.
Key Financials:
- Total Property Portfolio: $78.8 billion
- Work in Progress (WIP): $12.8 billion
- Occupancy Rate: 97.4%
- Like-for-Like NPI Growth: 4.9%
- Forecast FY25 Operating EPS Growth: 9%
- Full Year Distribution: 30cps
Goodman remains focused on delivering essential infrastructure to support global supply chains and digital economies, with significant investments and progress in the data centre and logistics sectors.
