Goodman Group upgrades earnings guidance on data centre demand
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The news: Industrial property investor Goodman Group has again upgraded its full-year earnings guidance, boosted by robust data centre demand.
The numbers: Goodman now expects earnings per share growth of 13% in FY24, up from its previous estimate of an 11% growth. It had previously lifted guidance in February from an initial forecast of 9% growth.
Goodman shares are up 37% so far in 2024.
The context: The value of Goodman’s property portfolio rose to $80.5 billion and occupancy levels remained high at 98%, while like-for-like net property income grew at 5%. The company has $12.9 billion of projects underway across the world, with data centres accounting for over a third of this.
Goodman said its strong operating performance in the March quarter has positioned the business well for the full-year and into 2025, adding that competition for land in its markets is continuing to provide opportunities for the group.
What they said: "In particular, data centre demand is significant, driven by strong growth in cloud and AI requirements, and migration of data globally,” CEO Greg Goodman said.
"We believe our competitive advantage is based on our access to secured power on our sites and proven track record in development and program delivery, to meet the growing demand in an environment of limited supply."
The source: ASX announcement
