Goodman eyes 9% annual earnings growth as data center demand strengthens

Goodman Group (ASX:GMG) said its development pipeline remained on track in the first quarter, supported by growing demand for logistics facilities and data centers, while supply constraints around land and power continued to underpin its global property markets.

The Australian property group is targeting operating earnings per security growth of 9% in fiscal 2027 and a distribution of 30.0 Australian cents per security, it said on Wednesday.

Goodman's development work in progress stood at A$19.7 billion at September 30, spread across 51 projects, with an 8.3% yield on cost. Data centers accounted for 79% of the pipeline under construction, while 68% of projects were pre-sold or being developed for third parties or partnerships.

Its global power bank increased to 6.6 gigawatts, including 3.6 GW of secured power, as hyperscale and enterprise customers continued to seek additional data center capacity.

The group's total property portfolio rose to A$90 billion, while industrial occupancy stood at 95.5%

CEO Greg Goodman said constrained supply and rising demand were expected to support rental growth and create further development opportunities.