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Highlights
- Operating profit surged 8% to $1.22 billion, with property portfolio value rising 7% to $84.4 billion.
- $4 billion placement launched to support logistics and data center expansion.
- Development projects in progress valued at $13 billion, with a strong focus on digital infrastructure.
Goodman Group (ASX:GMG) is making headlines following the release of its HY25 financial results and the announcement of a $4 billion capital raising to support future growth. The industrial property giant, known for its extensive portfolio of warehouses, logistics hubs, and data centers, continues to strengthen its position in high-demand urban markets worldwide.
Strong HY25 Performance Boosts Growth Outlook
The company's financial results for the six months ending December 2024 indicate solid performance across key metrics:
- Like-for-like net property income (NPI) grew 4.7%, reflecting strong leasing demand.
- Portfolio value climbed 7% from June 2024 to $84.4 billion, driven by appreciation in key assets.
- Operating profit increased 8% year-over-year to $1.22 billion.
- Net tangible assets (NTA) per share rose 7% from FY24 to $9.44.
- Development work in progress (WIP) stands at $13 billion, spread across 68 projects, with a 6.7% forecast yield on cost.
A key driver behind Goodman’s performance is its expanding data center business, which now comprises 46% of its development WIP. The company also revealed that its global power capacity has reached 5GW across 13 cities, with 2.6GW already secured and another 2.4GW in advanced procurement stages.
$4 Billion Capital Raising to Fund Expansion
To capitalize on strong demand for logistics and data centers, Goodman has launched a fully underwritten pro-rata placement to raise $4 billion. Additionally, eligible shareholders will have access to a non-underwritten share purchase plan (SPP) of up to $400 million.
These funds will provide Goodman with greater financial flexibility to support its growth pipeline. Over the next few years, the company aims to allocate the capital toward:
- Expanding logistics and data center operations in high-demand markets.
- Advancing major projects expected to be active by June 2026, including 0.5GW of power capacity and an estimated end value exceeding $10 billion.
- Funding Goodman’s share of development costs, projected to be around $2.7 billion.
The placement price has been set at $33.50 per share, representing a 6.9% discount to Goodman’s last closing price. Shareholders can apply for up to $30,000 worth of new shares at this price.
Management’s Vision for the Future
Goodman’s CEO, Greg Goodman, emphasized the company’s commitment to digital infrastructure and logistics expansion:
“Goodman’s strategy of providing essential infrastructure for the digital economy – both through our logistics facilities and data centers – has set a strong foundation for the growth we expect to see by executing the global data center opportunity before us.”
With data center demand accelerating globally, Goodman’s expansion plans position the company for continued long-term growth in this space. The latest capital raising ensures that Goodman Group (ASX:GMG) remains well-funded to seize emerging opportunities and scale its industrial property business across key global markets.
