Sydney, May 15, 2026, 06:07 (AEST)
Goodman Group shares rose for a second straight session, closing at A$31.40 on Thursday, as investors looked past a soft Australian technology tape and turned again to the industrial property group’s data-centre pipeline. The stock gained 0.32% on Thursday after rising 1.39% on Wednesday, market data showed.
The timing matters. Goodman is due to give its Q3 FY26 operational update on May 26, a near-term test of whether it is turning scarce powered land into funded, leased projects rather than just a larger development book. Its investor calendar lists the Q3 FY26 operational update for that date.
Goodman has moved from being mainly a warehouse landlord and fund manager into a developer of data centres, the large power-hungry buildings used by cloud and artificial-intelligence customers. In February, the company said data centres made up 73% of its A$14.4 billion work in progress, or WIP — its measure of active development projects by projected end value or committed cost.
The group reported first-half operating profit of A$1.20 billion, operating earnings per security of 58.5 cents and statutory profit of A$824.7 million. It kept its FY26 target for operating earnings per security growth at 9%, a company filing showed.
Chief Executive Greg Goodman said in the February release that demand for digital infrastructure was expected to “materially exceed supply” in the group’s markets. He also said Goodman was on track to have data-centre projects providing 0.5 gigawatts of power in development by the end of FY26, lifting WIP to about A$18 billion by June 30. ASX Announcements
The broader market gave only modest help. The S&P/ASX 200 edged up 0.12% on Thursday, while real estate gained 0.28% and information technology fell 2.20%, according to Market Index.
The rate backdrop is still a brake on property stocks. The Reserve Bank of Australia’s cash-rate table shows the cash rate target rose by 25 basis points to 4.35% effective May 6, its third increase this year. Kalshi’s global central-bank markets showed the “maintain current rate” outcome for the June RBA decision at 84%, a sign traders were not pricing an immediate follow-up move as the base case. Reserve Bank of Australia
Analysts have focused less on the label “AI” and more on delivery. Morningstar analyst Yingqi Tan said in February she was watching whether Goodman was on track for 9% operating EPS growth and whether it was making progress in “pipeline activation,” including the company’s pledge to have 0.5 gigawatts of data centres under construction by June 2026. Morningstar
Tan also wrote that higher rates should have a “relatively limited impact” on Goodman compared with many peers, citing its low gearing and use of capital partners for large projects. Goodman reported gearing of 4.1% at Dec. 31, with A$5.2 billion of liquidity, the company filing showed. Morningstar
Competition is building around the same theme. NEXTDC, a pure-play Australian data-centre operator, reported first-half billing utilisation up 29% to 120 megawatts, while Prologis, the U.S.-listed logistics real estate group, said in April it delivered record leasing and was scaling its data-centre platform.
But the risk is execution, not just demand. Bell Potter analyst Andy MacFarlane flagged tenant attraction, larger cheque sizes, longer development periods and technological change as key risks in a November note, even while keeping a Buy rating. If customer commitments slip, power connections run late or costs rise, Goodman’s higher data-centre mix could take longer to feed through to earnings.
For now, investors are giving Goodman some room. The May 26 update will have to show more than another big number: progress on leases, power, partnerships and the A$14 billion-plus data-centre WIP target will decide whether the rebound keeps its footing.
