Goodman Group unveils $4.4b raising and better-than-expected operating profit
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The news: Industrial property giant Goodman Group launched a $4.4 billion capital raising to fuel growth in its data centre operations, as it posted a better-than-expected 8% jump in operating profit to $1.22 billion for the half-year ending 31 December.
The numbers: Its statutory result swung back to a $799.8 million profit, recovering from last year’s $202 million loss, helped by revaluation gains across its portfolio. Analysts polled by Visible Alpha had expected a 5% decline in operating profit to $1.07 billion and a $923 million statutory profit.
About $4 billion in equity will be raised via a fully underwritten pro-rata institutional placement, which will be complemented by a non-underwritten share purchase plan worth up to $400 million. The approximately 119.4 million shares will be sold at $33.50 each, a 6.89% discount to their closing price on Tuesday.
Morgan Stanley, JPMorgan and RBC Capital have underwritten the placement, according to the Australian Financial Review.
The context: The company plans to repay debt and invest in its logistics and data centre operations, including developing $10 billion worth of power banks in major cities such as Sydney, Melbourne, Los Angeles, Tokyo, Paris, Amsterdam and Hong Kong.
“By June 2026, we expect to have commenced the development of new powered shells and fully fitted facilities, reflecting approximately 0.5 GW,” CEO Greg Goodman said.
What they said: “Goodman is well positioned to maximise the significant data centre demand across our markets. The additional funds raised provide us with greater financial and operational flexibility to manage the next phase of growth,” Goodman added.
The source: ASX
