Goodman Group continues to build essential infrastructure for the digital economy

About Goodman Group Limited

Goodman Limited (Goodman, the Group, ASX: GMG)  is an integrated property group and digital infrastructure specialist with operations and investments throughout Australia, Asia, Europe the UK and the Americas. Goodman is the largest industrial property group listed on the ASX and is one of the largest listed specialist investment managers of industrial property and business space globally.

Artificial Intelligence and Cloud Computing driving Data Centre demand

Goodman’s digital infrastructure focus is a key investment strategy built on providing essential infrastructure for the digital economy. The initial focus on purpose-built warehouses and infrastructure logistics that increased supply chain efficiency in response to the unprecedented consumer appetite for online shopping, has given way to a strategic focus on data centres. This is evidenced by Goodman Group appointing a new senior executive to enhance global data centre customer engagement earlier this month. The objective is to reduce time to market and leverage Goodman’s existing power bank for the benefit of its data centre customers globally.

Data centres require uninterrupted power 24/7/365, which means if power supplied by utilities fail, emergency power supplies must immediately replace the power lapse. Data centres consume vast amounts of electricity when operating servers that also require cooling. Accordingly, power supply reliability is an equally critical factor in choosing data centre location. This is why sites close to hospitals, water treatment and sewerage plants and other critical social infrastructure that requires secured, uninterrupted power supply are ideally suited to data centre power needs. Goodman currently has secured a 4.3 GW power bank across 12 major international cities comprising sites that are supported by robust power grid infrastructure. This provides Goodman with a strategic advantage that should support above-market development returns in this specialist sector in the medium-term.

Scarcity is driving is driving rental growth and occupancy

Assets are valued consistently higher when they are scarce, relative to assets that are in plentiful supply. Goodman understand and apply this fundamental principle in their decision-making by securing strategic sites ahead of the demand curve to lock-in future development profits that are released as development projects move to the work-in-progress phase. Goodman’s early move into warehousing and logistics that support online retail shopping distributors, and more recently data centres, are examples of this fore-sight. This is why Goodman works closely with utilities, planning bodies, customers, and capital partners to lay the foundation for these future development projects ahead of the competition.

The Group has a pipeline of greenfield sites and value-add properties within the existing portfolio that are supported by favourable structural trends that imply future earnings growth. Development work-in-progress currently stands at approximately $12.9 billion across 82 projects.

Investors seeking dependable income and low asset price volatility can look to Goodman Group for these investment attributes.