According to the Financial Review [19 February 2025] the Goodman Group has flagged a $4 billion capital raising that it will use to drive its global logistics portfolio and its rapidly expanding data centres business.
The company’s surprise capital raising accompanied its 2025 first-half result, with operating profit up 8 per cent to $1.2 million.
Led by chief executive Greg Goodman, the country’s biggest property company has leaned heavily into data centre roll-out in recent years, moving swiftly to address a global thirst for data storage, now boosted by the rise of artificial intelligence applications.
“Goodman’s strategy of providing essential infrastructure for the digital economy – both through our logistics facilities and data centres – has set a strong foundation for the growth we expect to see by executing the global data centre opportunity before us,” the chief executive said on Wednesday.
“Goodman is well positioned to maximise the significant data centre demand across our markets. The additional funds raised provide us with greater financial and operational flexibility to manage the next phase of growth.”
JPMorgan, Morgan Stanley and RBC Capital markets have underwritten the considerable capital raising exercise.
Goodman’s total portfolio is $84.4 billion, up 7 per cent, with the bulk of that held across the company’s vast funds management platform. The company’s focus is turning increasingly to data centres, which now represent 46 per cent of its $13 billion workbook.
“We expect latent logistics demand to grow in future years,” the company said ahead of an earnings call on Wednesday.
“We have been executing the physical works program by securing power and planning, and commencing infrastructure and ground works, to increase speed to market.
“Goodman’s development capabilities, extensive land bank, and financial capacity position the group to capitalise on significant opportunities, including orienting the development workbook towards data centres and higher intensity use outcomes.”
Along with its logistics properties and the data centres, the capital raising will be used to reduce debt and add to working capital generally.
Statutory profit was $799.8 million, with operating earnings per security of 63.8¢, up 7.8 per cent. Goodman has flagged full-year guidance of 9 per cent operating earnings per share, a forecast that was restrained slightly due to the capital raising and issue of new stock. Had the raising not occurred, its earnings growth guidance would have been for 10 per cent growth, it said.
For further detail: https://www.afr.com/street-talk/goodman-group-raising-4-billion-three-brokers-on-ticket-20250218-p5ld2g