The Goodman Group (ASX: GMG) share price is in focus after the business announced its FY25 result and a strong net profit.
Goodman is one of the biggest property businesses on the ASX. It builds, owns and operates industrial properties around the world.
Goodman FY25 result
Here are some of the main highlights from the result for the 12 months to 30 June 2025:
- Total portfolio value up 9% to $85.6 billion
- Operating net profit up 13% to $2.3 billion
- Operating earnings per security (OEPS) rose 9.8% to $1.18
- Revaluation gains of $1.6 billion
- Statutory net profit of $1.67 billion
- Net tangible assets (NTA) per security up 25% to $11.03
- Distribution per security of $0.30
The business reported a number of positives across its business with a good performance for its property values, the developments and rental performance.
Goodman revealed its portfolio occupancy was 96.5% and the like-for-like net property income (NPI) growth was 4.3%, which I’d describe as a solid growth rate.
The property business said while customer decision making is currently being influenced by the ongoing uncertainty in global economies and trade, limited availability is supporting the underlying property fundamentals in its markets.
The valuations of the properties benefited from a tightening of the capitalisation rate (meaning it’s valued at a lower yield), market rent and cashflow growth.
Development and WIP
Goodman revealed that development earnings were up 4.8% to $1.34 billion, reflecting the quality of the workbook in its urban locations.
Development WIP was $12.9 billion, across 57 projects in 12 countries, with an annualised production rate of $6.1 billion. The WIP has a forecast development yield on cost of 7.5%.
The WIP is 49% pre-committed, with an average weighted average lease expiry (WALE) of 11.6 years, which I think is a sign for good rental growth ahead.
Gooodman said that data centres now account for 57% of WIP. The business said 130MW of fully fitted development projects are underway as of 30 June 2025, with a total power bank of 5GW across 13 major global cities.
The data centre portfolio remains “primarily located in high barrier to entry metro locations suitable for cloud and low latency requirements for hyperscaler and colocator customers.”
It recently launched a data centre partnership in Australia and is preparing to launch another in Europe in FY26.
Outlook for the Goodman share price
The business is targeting operating EPS growth of 9% for FY26, which would mean more than $2.6 billion of operating profit.
Goodman is doing all the right things to grow its underlying value. Falling interest rates is an obvious tailwind for the business, but after rising around 60% in the last two years, I’m not sure if this is the right time to invest because the market has seemingly priced in its foreseeable growth prospects.
There are other ASX growth shares that could make better investments, but I’d be very happy if I were a long-term shareholder.
