Goodman Group reiterates earnings guidance, talks up data centre pipeline
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The news: Goodman Group has reiterated its target of 9% operating earnings per share growth for FY26, as it aims to capitalise on surging AI demand through its growing data centre portfolio.
The numbers: The group expects its development work in progress (WIP) to reach approximately $18 billion by June, having already hit $14.5 billion as of 31 March.
For the third quarter, Goodman’s WIP reflects an annualised production rate of around $6 billion, with an 8% development yield on cost. Data centres under construction account for 73% of this total development pipeline.
Goodman’s total property portfolio reached $87.1 billion during the quarter, while its global power bank expanded 6.4 gigawatts.
The context: Goodman Group CEO Greg Goodman said the company has progressively repositioned its portfolio toward large, infrastructure-scale industrial assets and data centres, concentrating on urban infill logistics and low-latency sites in major metropolitan markets.
However, he noted that energy availability poses the most significant constraint to delivering the infrastructure required to power the digital economy. The large gap between surging demand and actual capacity is expected to widen further due to these supply constraints.
The source: ASX
