Goodman Group (ASX:GMG) share price down 6% on HY26 result

Core Viewpoint - Goodman Group's share price has declined by 6% following the announcement of its HY26 results, despite demonstrating strong growth in data center operations [1] Financial Performance - The total portfolio value reached $87.4 billion, with revaluation gains of $893 million [2] - Rental portfolio occupancy stands at 95.9%, with a like-for-like net property income (NPI) growth of 4.2% [2] - Property investment income increased by 17% to $366 million, while operating EBIT grew by 8.6% to $1.27 billion [8] - Operating profit rose by 1.6% to $1.22 billion, and operating earnings per security (EPS) grew by 9% to $0.638 [8] - Statutory net profit decreased by 3% to $799.8 million, and net tangible assets (NTA) fell by 1.3% to $11.03 [8] Development and Growth Outlook - The outlook for rental growth is positive, with an expected future rent reversion to market rents of approximately 12% [3] - Development operations are robust, with work in progress (WIP) reaching $14.4 billion across 51 projects, forecasted to yield 8.1% [3] - Data centers constitute 73% of the development WIP, with a global power bank of 6GW across 16 cities [4] - Approximately 0.5GW of work is expected to be underway by June 2026, with an additional 1.3GW capacity expansion planned [4] - The company is targeting FY26 operating EPS growth of 9.0% [9] Market Demand and Strategic Position - Demand for digital infrastructure is anticipated to significantly exceed supply, presenting a substantial opportunity for Goodman [6] - The company has established a data center development partnership in Europe, with another expected in Australia by 2026 [4] - The scale and locations of Goodman's powered land bank are considered rare, with construction-ready sites taking years to develop [7]