The Goodman Group (ASX: GMG) share price is down 6% after announcing HY26 result, despite strong data center growth plans.
Goodman is the largest property group listed on the ASX. It owns, develops and manages industrial infrastructure properties globally with 441 properties across 15 countries. Properties in its portfolio include logistics and distribution centres, warehouses and data centres.
Goodman HY26 result
Here are some key numbers from the report for the six months ending December 2025:
- Property investment income grew by 17% to $366 million
- Operating EBIT (EBIT explained) grew by 8.6% to $1.27 billion
- Operating profit increased by 1.6% to $1.22 billion
- Operating earnings per security (EPS) grew 9% to $0.638
- Positive property revaluations of $252 million benefiting Goodman
- Statutory net profit declined by 3% to $799.8 million
- Interim distribution of $0.15 per security
- Net tangible assets (NTA) fell 1.3% to $11.03
What happened in the half-year period?
The business reported its total portfolio value has reached $87.4 billion, with $893 million of revaluation gains across the group and partnerships.
Goodman’s rental portfolio remains strong, with the portfolio occupancy being 95.9% and the like-for-like net property income (NPI) growth of 4.2%.
The outlook for rental growth is positive, with the average expected future rent reversion to market rents across the portfolio at approximately 12%. That suggests there’s plenty of future organic rental growth.
Its development operations continues to be strong – its work in progress (WIP) reached $14.4 billion across 51 projects. Those projects have a forecast yield on cost of 8.1%. The business also noted that $2.5 billion of development completion were 87% leased, reflecting customer demand for its sites.
Data centres currently make up 73% of the development WIP. Goodman’s global power bank has increased to 6GW across 16 major global cities.
Approximately 0.5GW of work is expected to be underway by the end of June 2026, with an expansion of capacity of 1.3GW available on those activated sites.
Goodman said that it has established a data centre development partnership in Europe and a new partnership in Australia is expected to be completed in 2026.
The business noted that external assets under management (AUM) reached $75.2 billion at 31 December 2025, with management earnings of $325 million.
Outlook for the Goodman share price
The leader of the business, Greg Goodman, said:
Demand for digital infrastructure in our markets is expected to materially exceed supply over the foreseeable future. Goodman has a significant opportunity to develop into this strong demand, given our metropolitan sites, significant power bank, strong capital position and expertise in complex infrastructure.
The scale and locations of our powered land bank is rare. Construction-ready powered sites take many years to acquire, plan, secure power, undertake infrastructure works, and ultimately deliver.
Demand for logistics is increasing, with commencements expected to accelerate over the next 12 months. Together these are expected to drive our growing development activity.
The Group is targeting FY26 operating EPS growth of 9.0%.
Its portfolio continues to grow in value, operating earnings are increasing and the development pipeline remains strong. Is it putting too much into data centres? Time will tell – it’s certainly a growth area and there’s demand for it. It’ll be interesting to see how this plays out over the long-term.
After the recent market sell-off, there are other ASX growth shares I’d rather buy.
