Industrial property giant Goodman Group has lifted its operating profit 13 per cent to $2.3 billion as it expands into the growing data centre sector.
Statutory net profit for the financial year to June 30 swung to $1.7 billion, from a $99 million loss the year before, thanks to balance sheet strength and successful strategy execution, chief executive Greg Goodman said.
"We have looked beyond the volatility in the economic and trade environment over the last 12 months, and actively pursued long-term growth opportunities," he said.
"These include making a number of strategic site acquisitions that will enable us to meet growing demand for data centres and capture future growth in logistics demand across our metropolitan locations."
Data centres, in heavy demand due to the rise in artificial intelligence technology, now make up 57 per cent of Goodman's development works in progress across 13 major global cities.
Global demand for data centre capacity is expected to almost triple by the end of the decade, according to research from US consulting firm McKinsey.
"We continue to make strategic site acquisitions that will provide us with the flexibility to meet growing demand at data centres and capture future growth in logistics, which will be driven by increased mechanisation software and AI to help boost productivity," Mr Goodman told investors at an earnings call.
Goodman's total portfolio grew nine per cent in value to $85.6 billion over the year to June 30, including revaluation gains of $1.6 billion across the group and partnerships.
Kinder valuations have helped a number of Australian-listed real estate stocks boost portfolio values this reporting season, impressing investors who have lifted the sector more than two per cent in as many weeks.
The sector's value has risen 12.7 per cent in value in 2025.
Charter Hall and Mirvac swung to statutory net profits after losses in the 2024 financial year, while Stockland shares have rallied six per cent in two days, after posting strong results and a data centre strategy of its own.
Alongside its results, Stockland announced an exclusive partnership with EdgeConneX to develop, own and operate a data centre portfolio targeting opportunities in its logistics assets.
"Subject to documentation and approvals, this collaboration marks a significant step forward with a high-quality operator in hyperscale infrastructure," Stockland chief executive Tarun Gupta said on Wednesday.
Goodman Group is targeting earnings growth of nine per cent in the 2026 financial year, equating to more than $2.6 billion in operating profit.
