The Goodman Group (ASX: GMG) share price is in focus after the business reported its FY27 first quarter update.
Goodman is one of the largest property businesses in Australia. Its core focus is industrial properties, such as warehouse buildings and data centres.
FY27 first quarter update
Goodman reported that its total property portfolio is now worth $90 billion, up from $89 billion at 30 June 2026. Partnership assets under management (AUM) is $76.1 billion.
A key driver of the underlying value of the business is its development work, adding completed properties to its portfolio.
Development
Goodman said that its development program remains on track, supported by strong demand, particularly for next-generation warehouses (advanced automation, robotics and electrification). Additionally, hyperscale and enterprise customers are driving demand for data centre capacity.
The property business noted that the barriers to entry are increasing, with scarcity of sites, power and infrastructure, greater planning complexity and delivery timeframes are constraining future supply.
Those constraints are expected to increase rental growth and the value of existing assets, particularly in locations where zoning and power are in place. It noted that its properties are currently being utilised for logistics operations and valued at that level.
Its development work in progress (WIP) has now reached $19.7 billion across the world, with 51 projects. The annualised production rate is approximately $7.5 billion and the yield on cost is an impressive 8.3%. Data centres represent 79% of that WIP.
In regards to data centres, said its total power bank is now 6.6GW, with 3.6GW of secured power and 0.5GW of work in progress and 0.7GW delivered.
Rental performance
Goodman reported its property highlights at 30 September 2026, with annual like-for-like (LFL) net property income (NPI) growth of 4% (or 6.2% growth excluding Greater China).
Portfolio occupancy was 95.5% (or 96.7% excluding Greater China).
The portfolio weighted average lease expiry (WALE) was 4.9 years, which isn’t the longest in the sector, but still reflects a solid level of rental growth locked in.
Goodman also reported that it has leased 4.1 million square metres across the platform over the 12-month period to 30 September 2026, representing $602 million of rental income per year.
Outlook for the Goodman share price
Goodman expects growing demand and constrained supply to continue to support rental growth. It’s targeting FY27 operating earnings per security (EPS) growth of 9%.
I think Goodman is doing an impressive job of executing on its plans, though the outlook for data centres looks a bit more uncertain than it did earlier this year.
It could be undervalued after falling 16% since mid-June 2026 while still seeing strong growth of both its developments and rental performance.
Higher interest rates are a headwind, and it could turn into a tailwind for the company in the medium-term. But, there are other ASX growth shares that I’d rather look at.
