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]

Core Insights - Singapore telecom companies, including Singtel and Starhub, are transitioning from traditional telecom services to digital infrastructure and enterprise solutions as their growth in mobile and broadband has stagnated [1][3][14] Telecom Industry Overview - Mobile subscriptions in Singapore are projected to grow at a compound annual growth rate (CAGR) of 4.3% from 2021 to 2025, but average revenue per user (ARPU) has declined by 30% from 2018 to 2023 [2] - Despite the decline in ARPU, Singtel and Starhub are expected to invest a total of S$1.93 billion in capital expenditures for 5G [2] Singtel Financial Performance - In Q1 FY2026, Singtel's revenue remained stable at S$3.4 billion, with underlying net profit increasing by 14% year-on-year to S$686 million, driven by strong profit growth from regional businesses [5] - Singtel's capital expenditure plans include S$1.7 billion for core business and an additional S$0.8 billion for new initiatives by 2028 [7] - Singtel's recent core dividend of S$0.123 per share represents an 82% payout ratio and a dividend yield of approximately 2.9% [7] Starhub Financial Performance - Starhub's revenue for the first half of 2025 was stable at S$1.1 billion, but net profit dropped 42% year-on-year to S$47.9 million due to a one-time penalty [9][10] - Starhub's enterprise segment grew by 6.8% year-on-year, supported by strong cybersecurity services [10] - Starhub is guiding for a dividend of at least S$0.06 per share for 2025, with a current dividend yield of 5.2% [11] Challenges and Investment Considerations - The Singapore telecom industry faces intense competition, and 5G monetization is not expected to yield significant returns in the near term [12] - Singtel's capital expenditure is projected to be around 12% of total revenue, while Starhub's is expected to be 10% [12] - Singtel's current price-to-earnings (P/E) ratio is approximately 22 times, lower than its three-year average of 27.6 times, while Starhub's P/E is around 16.8 times compared to its three-year average of 17.2 times [13]

CoreWeave’s purchase of a cryptocurrency miner gives it ready-built data centres and power agreements with local utilities, both of which are needed to meet ballooning demand for AI https://t.co/5muiLSxUsZ ...