SYDNEY, July 9, 2026, 06:04 AEST
- Goodman dropped 1.6% to close at A$30.19 on Wednesday, while the S&P/ASX 200 shed 0.21% to 8,785.10.
- ASX was still closed at the dateline. The pre-open session is set for 7:00 and regular trading starts at about 09:59:45 Sydney time.
- Goodman said data centres made up 73% of its A$14.5 billion development pipeline as of March 31. Management is aiming for at least 9% operating EPS growth for FY26.
Goodman Group dropped harder than Australia’s main index on Wednesday. Investors gave a lower price to the fast-growing data centre pipeline ahead of Thursday’s open.
Goodman shares ended 1.6% lower at A$30.19. The S&P/ASX 200 was off 0.21%. Goodman’s market cap held near A$61.7 billion, making it one of Australia’s bigger stocks tied to AI infrastructure demand.
Timing is key. Goodman isn’t just a warehouse landlord now. Investors want to see if it can use its land, power and capex to drive contracted data centre rent, and still keep returns strong.
Australian stocks fell, with the market finishing in the red as higher oil prices on Middle East worries weighed. Miners and tech names underperformed. MarketIndex noted real estate was just a touch down in the afternoon, so Goodman’s slide didn’t look like a broad sector selloff.
Goodman’s late-May update is still central to the argument. The company said it had A$14.5 billion of projects being built, measured by projected end value, as of March 31. Goodman expects that to reach around A$18 billion by June. Data centres made up almost 75% of the current work, and 37% of the pipeline was already pre-committed, meaning leased or contractually locked in ahead of completion.
Chief Executive Greg Goodman said the AI build-out is the “most significant technological transition” so far and pointed to energy availability as the “most significant constraint.” Goodman aims for at least 9% growth in FY26 operating earnings per security. That’s the underlying profit figure per stapled security, adjusted to exclude things like property revaluations and movements in derivative fair values.
Goodman put its total power at 6.4 gigawatts, with 3.6 GW secured and another 2.8 GW in advanced procurement. The company pointed to those numbers as both a growth driver and a possible risk. Goodman said it expects to sign customer contracts for the rest of the year.
The company still has support from its existing portfolio. Goodman posted 95.7% occupancy and like-for-like net property income growth of 4.1%. Net property income is rent income less direct property costs. Total portfolio is now at A$87.1 billion. Goodman and its partnerships also wrapped up over A$12 billion of equity and debt initiatives for the nine months through March 31.
Data-centre stocks moved in both directions. NEXTDC, which is a pure-play data-centre operator, lost 1.0% on Wednesday. Dexus, a diversified real asset name, gained 2.2%. Goodman ended up between the two—part property, part infrastructure, and part AI capex story.
The valuation debate is still going. John Lockton, who leads investment strategy at Sandstone Insights, told Reuters during Goodman’s last data-centre surge that “data centres continue to see momentum.” But Morningstar analyst Winky Yingqi Tan called Goodman’s securities “expensive” and pointed to risks from aging tech, big upgrade costs, and extra supply hitting the market. Reuters
The risk is clear if things slow down. Any drop in customer signings, longer grid tie-ins, or delays with water and planning could leave Goodman more exposed to development risk, but with the shares already pricing in a lot. The 37% pre-committed rate from the March update is what the market is tracking now.
The next key hurdle isn’t just where the stock opens. Investors want to see locked-in data centre deals, new power secured, and signs Goodman’s A$18 billion pipeline will deliver the returns management is pitching.
