The Goodman Group (ASX: GMG) share price is down by 3% in response to its FY26 March quarter update.
Goodman Group is a major real estate developer and investor that owns large warehouses and data centres around the world.
FY26 third-quarter update
Goodman noted that it’s repositioning its portfolio towards large, infrastructure-scale industrial assets and data centres.
It said that consumer and business expectations are driving a structural shift in the supply chain, while robotics and automation (accelerated by AI-enabled software) are being adopted rapidly across logistics operations.
Goodman’s portfolio is concentrated in major global cities with logistics assets close to consumers and data centre assets. These are locations where demand is most durable and the assets are harder to replicate.
Development
Goodman noted that its development pipeline remains the primary source of value creation and portfolio growth for the business. It boasted about its integrated capability across land, planning, power, design, construction and leasing at scale.
At 31 March 2026, its work in progress (WIP) was $14.5 billion. By June 2026, it expects the WIP to be around $18 billion. The yield on cost (YOC) on the current WIP is 8%.
Goodman said its annualised production rate is around $6 billion, so it’s adding significant value to its portfolio each year.
Data centres are a significant portion of Goodman’s WIP – at 31 March 2026, 73% of WIP related to data centres. Goodman said its total powerbank is now 6.4GW.
It also noted that 43% of WIP is either pre-sold or being built for third parties or its partnerships.
Rental performance
Goodman noted that its underlying property fundamentals remain stable, underpinned by low vacancy, rental growth and limited new supply.
For the March 2026 quarter, it noted annual like-for-like (LFL) net property income (NPI) growth of 4.1% (or 6.1% excluding Greater China).
Its portfolio value was stable at $87.1 billion, with an occupancy rate of 95.7% (or 97% excluding Greater China).
Goodman’s portfolio has a weighted average lease expiry (WALE) of 4.9 years, meaning essentially that half of decade of rental income is already locked in.
Outlook for the Goodman share price
Goodman noted that it’s well positioned to build into the current demand and capture future growth for data centres and AI.
In what’s perhaps both a positive and negative for Goodman, it said that supply remains constrained by grid capacity, water availability, site complexity and capital intensity.
Goodman said equity capital is becoming “more selective”, though, again, Goodman may be well positioned to partner in this.
It’s on track to deliver at least 9% operating earnings per security (EPS) in FY26, which is a solid growth rate.
With the Goodman share price down around 20% since August 2025, it’s noticeably cheaper, so this could be an appealing time to invest.
But, it is still priced quite highly, so it’s not one of the most ASX growth shares I’d buy considering its actual earnings growth rate.
