Goodman FY26 Operating Profit Up 15.7% to A$2.67 Billion

Goodman Group (ASX:GMG) reported FY26 operating profit of $2,674.5 million, up 15.7 per cent on FY25, and operating earnings per security of 129.9 cents, up 10.1 per cent, a measure the release states is calculated using operating profit and weighted average diluted securities of 2,058.7 million, which include 16.1 million long term incentive plan securities that vest between FY27 and FY32. Statutory profit was $2,778.7 million. The release states all figures are in Australian dollars, and defines operating profit as profit attributable to securityholders adjusted for property valuation related movements, fair value adjustments related to hedging activities and other non-cash or non-recurring items. Development earnings were the largest contributor to the result at $1,792.2 million, up 34 per cent on FY25, which Goodman attributed to increased development activity originated on balance sheet. Property investment income rose seven per cent to $722.1 million, driven by higher average capital investment and rental growth, and management earnings were $690.1 million, with external assets under management up five per cent to $75.4 billion. Distribution per security for FY26 was 30.0 cents, and net tangible assets per security were $11.79, up seven per cent on FY25.

Development work in progress rose to $19.7 billion across 50 projects in 12 countries at a forecast yield on cost of 8.2 per cent, a measure the release defines as the projected end value of projects in most cases and, for certain longer dated early stage projects, the estimated cost of land and committed works, with data centres making up 78 per cent of work in progress and 71 per cent of the total being undertaken for Partnerships or third parties. Goodman said approximately 0.5GW of data centre developments are underway across ten projects in eight global cities, that its power bank increased to 6.4GW across 16 major global cities from 5.0GW across 13 cities in FY25, comprising 3.6GW of secured power and 2.8GW in advanced stages of procurement, and that approximately 50 per cent of projects in work in progress are either leased or in advanced negotiations. The total portfolio, which the release states includes all Group, Managed Partnership and Partnership Investment assets, was $89.0 billion, up four per cent, with revaluation gains of $3.1 billion across the Group and Partnerships of which $229.7 million was the Group's share; portfolio occupancy of 95.6 per cent and like-for-like net property income growth of 4.0 per cent are stated for Partnership industrial and warehouse assets, excluding properties earmarked for sale or redevelopment. Gearing was 6.5 per cent, up from 4.3 per cent at 30 June 2025, or 19.5 per cent on a look-through basis, with an interest cover ratio of 25.4 times, or 9.5 times on a look-through basis, and group liquidity of $6.4 billion in cash and undrawn lines. Goodman is targeting FY27 operating earnings per security growth of nine per cent, a target the release states is subject to there being no material adverse change in market conditions or the occurrence of other unforeseen events.