Australia’s largest industrial property group Goodman Group (ASX: GMG)is transforming into a digital infrastructure powerhouse. The Goodman Group Q1 FY26 results reveal that data centres now command 68% of its massive development pipeline, marking a strategic pivot from traditional logistics.
Figure 1: Goodman Group’s global data centre power bank network
Development Pipeline Surges to AUD 12.4 Billion
The Goodman Group earnings update showcases development work in progress totalling AUD 12.4 billion as at 30 September 2025. Management projects this will surge beyond AUD 17.5 billion by June 2026 as major data centre projects break ground.
Data centres now represent 68% of the development workbook, approximately AUD 8.4 billion of current work in progress dedicated to digital infrastructure.
Development metrics include:
- Yield on cost of 7.5% across current projects
- 45% of work in progress is committed to customers
- 40% being built for third parties or partnerships
- Annualised production rate of approximately AUD 6.0 billion
The company completed AUD 1.6 billion worth of developments during the quarter, predominantly fee-for-service projects in China. New commencements totalled AUD 0.3 billion, with 97% located in Continental Europe and the United Kingdom.
Goodman Group Financial Results Q1 2026 Reveal 5 Gigawatt Global Power Bank
The Goodman Group financial results Q1 2026 reveal the company’s global power bank stands at 5.0 gigawatts across 13 major cities. This comprises 3.4 gigawatts of secured power and 1.6 gigawatts in advanced procurement stages.
Management expects to commence construction on data centre projects totalling approximately 0.5 gigawatts by June 2026. These projects carry an estimated end value of approximately AUD 13.0 billion at 100% ownership.
Figure 2: Aerial render of Goodman’s large-scale data centre facility
The company has delivered 0.8 gigawatts of data centres over the past 15 years. Around 0.7 gigawatts remain within the group’s partnerships, generating approximately AUD 300 million of income annually.
Approximately 300 employees now focus specifically on data centre activities across technical design, delivery, procurement, commercialisation and operations.
Portfolio Delivers 96.1% Occupancy and Steady Growth
The Goodman Group earnings update shows the total property portfolio increased to AUD 85.9 billion as at 30 September 2025. Portfolio occupancy sits at 96.1% across partnership assets, rising to 97.7% when excluding China and Hong Kong.
Figure 3: Construction progress on Goodman Group’s data centre development
Like-for-like annual net property income growth reached 4.2% for properties in partnerships. Excluding China and Hong Kong, this figure jumps to 6.1%.
The company leased 3.7 million square metres over the 12-month period to 30 September 2025. This activity equates to AUD 519 million of rental income per annum.
Goodman Group Earnings Update Confirms Stable Assets Under Management
The Goodman Group Q1 FY26 results show assets under management remained unchanged at AUD 72.1 billion as at 30 September 2025. This will increase by AUD 2.0 billion following the establishment of the second North American partnership after quarter-end.
The group maintains 11 partnerships across Australia and New Zealand, with co-investment averaging 28.9% across 184 properties. Total portfolio includes 396 properties across all partnerships and regions.
Goodman is currently raising equity capital for data centre partnerships in Europe and Australia, adding to existing partnerships in Japan and Hong Kong.
Figure 4: Regional breakdown of Goodman Group’s total property portfolio
Regional portfolio breakdown:
- Australia: AUD 32.1 billion across 184 properties
- Hong Kong: AUD 14.0 billion across 19 properties
- USA: AUD 10.6 billion across 27 properties
- Continental Europe: AUD 10.5 billion across 106 properties
- Japan: AUD 6.5 billion across 26 properties
- China: AUD 4.8 billion across 46 properties
- New Zealand: AUD 4.1 billion across 14 properties
- United Kingdom: AUD 2.9 billion across 15 properties
- Brazil: AUD 0.4 billion across 4 properties
The group’s co-investment totals AUD 13.4 billion, providing alignment with partner interests.
Technology-Driven Logistics Reshapes Demand
The Goodman Group financial results Q1 2026 highlight how larger logistics customers are making significant capital investments into supply chain technology, particularly automation through AI and robotics.
This drives consolidation into higher-quality locations, favouring Goodman’s large-scale infill sites and track record in complex multi-purpose projects.
Figure 5: Greg Goodman, CEO of Goodman Group
Greg Goodman explained that industrial development remains subdued, but opportunities are emerging. The company expects the current enquiry to translate into increased industrial development opportunities during FY27.
What This Means for Investors
The Goodman Group Q1 FY26 results demonstrate a company executing calculated transformation. The shift toward data centres capitalises on adjacent infrastructure demand while maintaining logistics fundamentals.
Goodman currently trades at AUD 31.160 per share, with a 52-week range of AUD 25.010 to AUD 39.430 per share. The stock maintains strong liquidity with average daily trading volume of 2,837,543 shares and 2,044,793,036 shares on issue, making it accessible for both institutional and retail investors.
Figure 6: Goodman Group (ASX: GMG) share price trend
The development pipeline provides visibility into future earnings growth. The 7.5% yield on cost across current developments should support attractive returns as projects complete over the coming years.
The reaffirmed 9% operating earnings per security growth target for FY26 provides a clear benchmark. Whether this proves achievable will depend on the timing and success of the data centre construction program now ramping across global markets.
FAQs
- What were Goodman Group’s key Q1 FY26 highlights?
Goodman Group reported development work in progress of AUD 12.4 billion as at 30 September 2025, projected to exceed AUD 17.5 billion by June 2026. The company maintained 96.1% occupancy and achieved 4.2% like-for-like NPI growth. Total portfolio reached AUD 85.9 billion.
- How significant are Goodman’s data centre operations?
Data centres represent 68% of development work in progress, approximately AUD 8.4 billion. The company maintains a global power bank of 5.0 gigawatts and expects to commence projects totalling 0.5 gigawatts by June 2026 with an estimated end value of AUD 13.0 billion.
- What is Goodman’s FY26 earnings guidance?
Goodman Group reaffirmed its forecast for 9% operating earnings per security growth for FY26. Development activity will be weighted to the second half, which may result in similar timing effects on earnings.
- Where are Goodman’s major data centre projects?
Major projects include PAR02 in Paris (80 MW), SYD01 in Sydney (90 MW), TYO05 in Tokyo (50 MW, first phase of 1,000 MW campus), LAX01 in Los Angeles (~50 MW), and FRA02 in Frankfurt (45 MW).
- What is Goodman’s current share price?
Goodman Group trades at AUD 31.160 per share with a 52-week range of AUD 25.010 to AUD 39.430. Average daily volume is 2,837,543 shares.
