Mayank Bansal, CFA
Mayank Bansal is a CFA Charterholder and heads the Equity Research team at Kapitales Research, with over 5 years of experience analysing global equity markets. He leads fundamental, data-driven research combining rigorous financial analysis with macro trends.
Goodman Group Operational Update: AU$19.7 Billion Development Pipeline With Data Centres at 79% of Work
Highlights
Introduction
Goodman Group (ASX: GMG) lodged its Goodman Group operational update for the first quarter of FY27 on Wednesday. It is currently trading at AU$27.06 after a fall of about 0.92%. The stapled group covers Goodman Limited, Goodman Industrial Trust and Goodman Logistics (HK) Limited. All figures in the update are in Australian dollars and as at 30 September 2026, unless stated otherwise.
Development Pipeline and Data Centres
The group's development book, measured on estimated end value, stood at AU$19.7 billion. That work is spread over 51 projects in several regions.
Of that work in progress, 79% sits in data centre projects. On the current book, the yield on cost is 8.3%.
Just under a third of the work, 31%, is pre-committed. Goodman links this level to the larger data centre share, as much of that work begins before customer contracts are signed. A broader 68% of the book has been pre-sold or is being developed on behalf of partnerships or third parties. The annualised production rate is about AU$7.5 billion.
Over the three months to 30 September, completions came to AU$0.6 billion and commencements to AU$0.4 billion. New starts carried a 9.1% yield, while finished projects delivered 7.2%.
By region, Continental Europe and the UK hold 40% of the book. Australia and New Zealand account for 21%, Asia for 20% and the Americas for 19%. The weighted average lease term on this work is 14.8 years.
Power Bank and Customer Activity
Goodman's power bank has grown to 6.6 GW worldwide. Of that capacity, 3.6 GW is secured.
Data centre projects under way represent 0.5 GW, and a further 0.7 GW has been delivered. The company says its data centre program is on track for its scheduled dates, with staged delivery running from early 2027 to 2030. The campuses hold room for a further 1.3 GW.
Talks are advanced on several sites to commit entire buildings to hyperscale customers. Other projects are in active discussion with prospective users.
Portfolio and Capital
Across the group and its partnerships, the total portfolio rose to AU$90.0 billion. Partnership assets under management were AU$76.1 billion, having grown by AU$1.0 billion in the September quarter.
Occupancy across the portfolio was 95.5%, or 96.7% outside Greater China. Like-for-like net property income grew 4.0% on an annual basis, and the weighted average lease expiry was 4.9 years.
The Goodman Hong Kong Data Centre Partnership raised US$455 million during the period, bringing in two new investors.
Share Price Movement
Goodman Group securities were trading at AU$27.06 on Wednesday, a decline of 0.92%. Around 442,621 securities had traded at that point in the session.
What Investors Should Watch
Conclusion
Goodman Group reported AU$19.7 billion of development work across 51 projects, with data centres at 79%. Its power bank now totals 6.6 GW, including 3.6 GW secured. The total portfolio stands at AU$90.0 billion, with occupancy at 95.5%. The company is targeting 9% operating EPS growth and a 30.0-cent distribution for FY27.
Note- All data presented is based on information available at the time of writing.
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