Is GMG positioned for the next growth cycle?

GMG remains a high-quality long-term compounder, supported by scale, strong capital access, and a development pipeline positioned around AI, data centres and modern logistics.

Goodman Group (ASX: GMG) 

reported its Q3 operational update on 26 May 2026 showing a business that is increasingly aligned with two long duration themes: data centres and large scale urban industrial assets. The group reported a total portfolio of $87.1 billion, development work in progress of $14.5 billion and a 6.4 GW total power bank highlighting the scale of its platform and its ability to keep building into structurally strong demand.

Business update

The key message from the update is that Goodman continues to reposition its portfolio toward infrastructure scale assets that are harder to replicate. The company said AI adoption, compute demand and robotics led supply chain transformation are driving structural growth while constrained energy availability and capital intensity are limiting new supply.

This backdrop supports Goodman’s focus on metropolitan logistics and low latency data centre markets where customer demand is more durable. The group also noted that the scale of the land required, power procurement complexity and planning hurdles increasingly favour large and well capitalised operators like Goodman.

Development pipeline

Development remains the main engine of value creation with WIP at $14.5 billion and an annualised production rate of about $6 billion. Goodman expects WIP to rise to around $18 billion by June 2026 with data centres making up 73% of current WIP.

The pipeline is already well supported with 43% of WIP either pre sold or being built for third parties or partnerships while 37% is precommitted. The company also highlighted disciplined execution across procurement and contractor management to reduce cost and delivery risk in a more uncertain geopolitical environment.

Data centre rollout

Goodman’s data centre program is advancing across multiple global markets with secured power expected to increase further over the next 6 12 months. The group said commercial discussions are at an advanced stage and customer commitments are expected during the remainder of the calendar year.

Several major projects are moving forward including Sydney, Los Angeles, Hong Kong, Tokyo, Amsterdam, Paris and Frankfurt. These projects are designed as flexible deployments for single or multi customer use and many sit inside development partnerships that help Goodman scale while preserving capital efficiency.

Property and capital

Underlying property fundamentals remain solid and supported by low vacancy, rental growth and limited new supply across core markets. Goodman reported annual like for like NPI growth of 4.1%, portfolio occupancy of 95.7% and a portfolio WALE of 4.9 years which points to stable income quality alongside development upside.
Capital management is another strength. Over the nine months to 31 March 2026, Goodman and its partnerships completed more than $12 billion of equity and debt initiatives including major bond issuance which strengthened liquidity and extended debt maturity.

Outlook

Management said the portfolio is well positioned to capture growth from AI inferencing, hyperscale demand and industrial automation. The company remains focused on recycling capital into higher return development opportunities and believes current activity should support stronger industrial development opportunities in FY27.

Goodman also stated that it is on track to deliver at least 9% operating EPS growth in FY26 which suggests the business is still executing well despite the heavy investment cycle.

(Source: Company Reports)