Summary
The fund managers believe that Goodman Group presents a strong investment opportunity due to its robust portfolio of high-quality logistics assets and strategic positioning in key markets. In their opinion, the company's focus on sustainable development and long-term growth aligns well with current market trends, enhancing its appeal. They also highlight the potential for consistent rental income and capital appreciation as significant advantages. Additionally, the fund managers note that Goodman Group's strong balance sheet and solid operational performance provide a cushion against market volatility. Overall, they express confidence in the company's ability to navigate economic uncertainties while delivering value to shareholders.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Source: Trading View
Commentary From The Managers
Wilson Asset Management
9 Sept 2025
$32.81
Summary
- Wilson Asset Management highlights Goodman Group's transition from traditional warehouses to data centre development.
- The stock is currently trading at its lowest premium for the market in five years.
- Anna Milne, deputy portfolio manager, describes Goodman Group as a safe hold in volatile times.
- There is a strong belief that the future will run on data, reinforcing the company's relevance.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
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Commentary From The Managers
Wilson Asset Management
9 Sept 2025
$32.81
- Wilson Asset Management highlights Goodman Group's transition from traditional warehouses to data centre development.
- The stock is currently trading at its lowest premium for the market in five years.
- Anna Milne, deputy portfolio manager, describes Goodman Group as a safe hold in volatile times.
- There is a strong belief that the future will run on data, reinforcing the company's relevance.
Summary
First Sentier Investors
4 Aug 2025
$34.39
- First Sentier Investors initiated a position in Goodman Group due to a recent capital raise.
- The capital raise has strengthened Goodman's balance sheet.
- This financial stability positions Goodman well for future growth.
- Data centres represent 50% of Goodman's growth pipeline.
- First Sentier Investors anticipates around 10% EPS growth in the near term.
- The fund manager believes Goodman is well-positioned for success.
- Overall, First Sentier Investors views Goodman Group as a buy.
Summary
Airlie Funds Management
4 Aug 2025
$34.39
- Airlie Funds Management views recent market fluctuations as a favorable buying opportunity for Goodman Group.
- The investment remains in the portfolio, reflecting confidence in the company's prospects.
- The balance sheet is positioned well, indicating financial stability.
- Upcoming results are anticipated to be critical for assessing execution on the pipeline.
- Potential insights on capital partnerships may emerge, enhancing growth prospects.
- Goodman Group offers unique exposure to significant market themes, particularly reflecting trends seen in the US.
- Overall, the setup for Goodman Group appears promising for investors.
Summary
Clime Investment Management
30 June 2025
$34.24
- Clime Investment Management added to their position in Goodman Group during June.
- Reflects continued conviction in Goodman’s long-term growth strategy.
- The company’s pivot toward data centres is gaining momentum.
- Supported by increasing global demand for cloud and AI infrastructure.
- Goodman’s unique portfolio features strategically located assets ready for repurposing.
- This positions Goodman well to capture structural tailwinds.
- Strong balance sheet and track record of executing asset improvements.
- Belief that Goodman is set to deliver attractive earnings growth.
- Potential to create meaningful shareholder value over the coming years.
Summary
Oracle Advisory Group
30 June 2025
$34.24
- Oracle Advisory Group continues to hold a positive outlook on Goodman Group.
- Recent results from Goodman and NextDC have alleviated market concerns regarding growth prospects.
- McKinsey forecasts a need for $6.7 trillion in data centre investment driven by AI demand.
- Nvidia’s Jensen Huang predicts data centre spending will double to $2 trillion in the next five years.
- Evidence shows that project sizes for both NextDC and Goodman are increasing.
- This supports the view of long-term growth in the data centre sector.
- As a result, weights in Goodman Group have been increased.
Summary
Clime Investment Management
31 May 2025
$32.64
- Goodman Group (GMG) contributed positively to performance in May, recovering from an oversold position in April.
- Market conditions in April were risk-off, impacting growth stocks.
- Late May, GMG provided a 3Q operational update highlighting significant opportunities to repurpose its global real estate portfolio into data centres.
- GMG reiterated guidance for EPS growth of 9% for FY25.
- While the data centre opportunity is long-dated and capital intensive, Clime Investment Management believes GMG is well positioned to create shareholder value going forward.
Summary
Pengana Capital Group
31 May 2025
$32.64
- Goodman Group (GMG) has shown year-to-date underperformance, which enhances its appeal in terms of valuation.
- Strong upside potential is driven by a growing data centre pipeline.
- This pipeline is expected to support development profits.
- There are opportunities for AUM growth and co-investment.
- Pengana Capital Group continues to hold its position due to these factors.
Summary
Tyndall Asset Management
31 May 2025
$32.64
- Tyndall Asset Management notes that Goodman Group outperformed in May.
- US hyperscalers reported their Q1 results, reaffirming their commitment to data centre CAPEX.
- Investors are increasingly focused on AI strategies in the tech sector.
- Previously, Goodman faced negative market sentiment regarding AI infrastructure needs.
- Concerns arose after DeepSeek’s release and Microsoft adjusted some international leases.
- Tyndall Asset Management continues to hold its position in Goodman Group due to these developments.
Summary
Sterling Managed Investments
30 Apr 2025
$29.98
- Sterling Managed Investments has increased its position in Goodman Group (GMG) following a significant de-rating.
- GMG provides high-quality exposure to data centers and logistics.
- The stock is currently trading at an attractive multiple compared to its historical values and peers.
- GMG boasts a strong balance sheet and a portfolio of A-grade assets.
- There is access to power and potential catalysts on the horizon.
- Sterling Managed Investments sees compelling growth at a reasonable price (GARP) in GMG.
Summary
Wilson Asset Management
30 Apr 2025
$29.98
- Wilson Asset Management believes shares in Goodman Group were oversold due to leasing activity concerns and market valuation vulnerabilities.
- Both Goodman Group and NEXTDC have rebounded strongly following a market bounce.
- This recovery has been supported by positive commentary from major cloud data management providers like Meta Platforms regarding increased capital expenditure for AI infrastructure.
- Upcoming data points for NEXTDC will be available in May, with a presentation at the Macquarie Conference.
- Goodman Group is set to report its quarterly update later this month.
Summary
Tyndall Asset Management
31 Mar 2025
$28.43
- Tyndall Asset Management acknowledges that their overweight holding in Goodman Group has detracted from performance due to the company's recent underperformance.
- The company initiated a $4 billion equity raising to support the development of their 5 gigawatt data centre pipeline on their own balance sheet, aiming to enhance returns.
- Market sentiment surrounding data centres was negatively impacted following news that Microsoft began cancelling some data centre leases as part of a strategy to reshape their data centre fleet.
Summary
Blackwattle Investment Partners
31 Mar 2025
$28.43
- Blackwattle Investment Partners continues to hold an underweight position in Goodman Group (GMG).
- The long-term growth of data centres is being reassessed by investors.
- High PE multiples for GMG are currently being questioned.
- More efficient AI models may impact corporate IT spending.
- In a weaker economy, there is a risk of a lower growth rate for developers like Goodman.
- Potential for lower profit margins as the value chain contracts.
- Demand for GMG’s core industrial property offerings is influenced by the economic cycle.
- The company faces headwinds from US tariff policy.
Summary
Ten Cap
21 Mar 2025
$31.45
- Ten Cap considers Goodman Group as one of the best industrial property trusts globally.
- The company now provides fast track data centre exposure.
- Jun Bei Liu and Rudi Filapek-Vandyck have identified Goodman Group as an attractive buy at current levels.
- Both analysts believe it is a high-quality investment trading at a discount.
- Liu emphasized that Goodman has been a core holding for Ten Cap.
- The data centre opportunity enhances Goodman’s existing strengths in the property sector.
- Goodman has a strong existing client base for selling data centre capacity.
- Liu views this as a defensive way to tap into structural growth.
Summary
Sterling Managed Investments
28 Feb 2025
$31.31
- Sterling Managed Investments continues to hold a positive outlook on Goodman Group (GMG).
- Recent 1H results were solid, reinforcing confidence in GMG's performance.
- Capital raising initiatives are aimed at funding growing opportunities in data centre development.
- GMG is viewed as advantaged versus peers in creating value.
- Existing assets are strategically located in metro areas with necessary infrastructure.
- These locations are well-suited for digital infrastructure catering to cloud and technology-related tenants.
Summary
Oracle Advisory Group
30 Sept 2024
$36.99
- Oracle Advisory Group has trimmed several positions during the month.
- Goodman Group was reduced as its position size exceeded 40%, against a benchmark of 37%.
- The company has experienced an extremely positive performance over the last 2 years, with a consistent increase in share price.
- Goodman's share price has moved past estimated fair value, prompting a reduction in position size.
Summary
Cooper Investors
30 June 2024
$35.01
- Goodman Group (GMG) is a key holding in the portfolio.
- The company is strategically positioned to capitalize on the increasing demand for data centre capacity.
- Goodman Group has a robust development pipeline of 4.3GW across 12 global cities.
- Medium-term growth prospects appear promising.
- Cooper Investors is adopting a cautious approach due to the current hype surrounding the AI thematic.
Summary
Greencape Capital
30 June 2024
$35.01
- Greencape Capital added Goodman Group to the portfolio nearly two years ago, following management closely.
- Admired multi-year shift to lower gearing and consistent focus on recycling assets into higher quality locations.
- Stock sell-off in late 2022, driven by rising interest rates, provided a unique investment opportunity.
- Lower gearing offers balance sheet flexibility amid increasing debt costs in the broader property market.
- Greencape believes GMG's balance sheet flexibility allows for more effective operations without heavy reliance on partners.
- Strong local market knowledge and relationships with power authorities enable GMG to transform key sites into data centers.
- Data demand has surged, especially with the advent of GenerativeAI, highlighting GMG's foresight in securing power in high-demand regions.
- Expanding presence in Asia and Europe, where data center capacity is still developing compared to North America.
- Market has begun to recognize GMG's unique land holdings, leading to outperformance in the share price.
- GMG expected to deliver at least mid-teens earnings growth, justifying a higher earnings multiple.
- Greencape conducted deeper research into GMG's locations in Japan and Europe to assess execution risk and demand dynamics.
- Comfortable with GMG's understanding of local nuances and participation in land amalgamation with local governments.
- Tsukuba's 1GW site is underway, with infrastructure development ongoing and potential for significant future value.
- FLAP-D markets in Europe include Frankfurt, London, Amsterdam, and Paris, where GMG has strong positions.
- Potential for further site development in Europe, beyond what is currently recognized in GMG's Work In Progress.
- Upside potential remains for GMG as AI and data center demand continue to grow over the medium to long term.
Summary
Oracle Advisory Group
31 Mar 2024
$33.38
- Oracle Advisory Group believes Goodman is the best company within the Australian listed property sector.
- Recent half yearly update shows operating profit up 28.6% and operating EPS up 27.6%.
- This strong performance led to a 33.15% increase in share price.
- Goodman reported work in progress of $12.9bn across 12 countries.
- The forecast yield on the cost of these projects is 6.7% once completed.
- Data centres constitute about 37% of the work in progress.
- Goodman has taken a significant percentage of data centre work in progress onto its own balance sheet.
- This strategy is aimed at capturing upside in operating profits and higher valuations in this in-demand sector.
- Despite these investments, the balance sheet remains strong with 9% balance sheet gearing and 22.7% look-through gearing.
Summary
Greencape Capital
31 Dec 2022
$17.31
- Greencape Capital initiated a position in Goodman Group (GMG) due to their specialist focus on industrial property in high demand locations globally.
- The fund manager values the alignment between management, led by founder Greg Goodman, and shareholders due to significant executive ownership.
- GMG has experienced a derating of its earnings multiple, currently trading under 20x, which Greencape Capital sees as a favorable entry point.
- Strong growth in Assets Under Management (AUM) is expected, with recent increases driven by acquisitions, developments, and revaluation gains.
- GMG's assets are well-positioned to benefit from rising market rents, anticipated to grow by 20%-60% post-lease expiry due to low vacancy and increasing industrial demand.
- Recent improvements in net operating income growth (4.0% in 1Q23) and high occupancy rates (99%) indicate strong operational performance.
- Greencape Capital believes FY23 EPS growth guidance of 11% has upside potential, with management typically conservative in guidance updates.
- There is an estimated $1.2bn in performance fees not yet booked, with potential for release over time.
- GMG has significant development revenue held back, indicating potential future earnings growth as development activity increases.
- Overall, Greencape Capital views GMG as a high-quality business trading at an attractive valuation with strong growth prospects supported by demand in the industrial sector.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Frequently Asked Questions
Who has invested in Goodman Group (ASX:GMG)?
Fund managers including Greencape Capital, Cooper Investors, Oracle Advisory Group, Pengana Capital Group, Ten Cap, Blackwattle Investment Partners, Wilson Asset Management, First Sentier Investors, Airlie Funds Management, Clime Investment Management, Sterling Managed Investments and Tyndall Asset Management have invested in Goodman Group (ASX:GMG).
Why have investment managers invested in Goodman Group (ASX:GMG)?
Fund managers have invested in Goodman Group (GMG) due to its strategic positioning in the industrial property market and its robust growth potential in the data center sector. The company is a leader in owning, developing, and managing industrial properties in high-demand locations globally, benefiting from a low-interest-rate environment that previously elevated its earnings multiple. With a founder-led management team aligned with shareholders, GMG has demonstrated strong asset growth and operational resilience, even amid rising interest rates.
Key reasons for investment include:
1. **Strong Growth in Assets Under Management (AUM)**: GMG has consistently increased its AUM, driven by acquisitions and revaluation gains, indicating a solid growth trajectory.
2. **Rising Demand for Data Centers**: With a significant development pipeline focused on data centers, GMG is well-positioned to capitalize on the increasing global demand for cloud and AI infrastructure, particularly in strategic locations across Asia and Europe.
3. **Low Vacancy and Market Rent Growth**: The company’s assets are currently earning below market rents, with expectations of substantial upward revisions upon lease expirations, driven by low vacancy rates and the trend of on-shoring.
4. **Strong Balance Sheet Flexibility**: GMG’s conservative gearing allows for balance sheet flexibility, enabling it to undertake more development projects independently, thus enhancing potential earnings growth.
5. **Positive Earnings Outlook**: Fund managers project continued earnings growth, with GMG expected to deliver mid-teens EPS growth, supported by its ability to leverage existing assets and capitalize on emerging opportunities in the data sector.
Overall, Goodman Group is viewed as a high-quality investment with a compelling growth profile, particularly in the evolving landscape of data centers, making it an attractive option for fund managers.
What happened to Goodman Group (ASX:GMG)?
In August 2025, fund managers expressed strong confidence in Goodman Group, trading around $34.39. First Sentier Investors highlighted the company's solid balance sheet and anticipated 10% EPS growth, driven by its significant focus on data centres, which comprise 50% of its pipeline. Airlie Funds Management echoed this sentiment, viewing recent price fluctuations as a buying opportunity and emphasizing Goodman’s potential for growth and strategic execution. In September 2025, Wilson Asset Management noted the stock's favorable position, trading at its lowest market premium in five years, and described it as a stable hold amid market volatility, reinforcing the notion that the future is reliant on data.