Thank you very much. Good morning, everyone. Goodman has had a strong year. Operating profit was more than AUD 2.3 billion, while operating earnings per security grew by 9.8%. The group has 4.3% gearing, AUD 6.6 billion of liquidity, and interest rate cover of over 47x . These results reflect the success of our strategy to target major cities around the world, adding value and infrastructure to sites with high barriers to entry and providing future growth opportunities. This global strategy is reflected in our operating earnings, with approximately 70% now generated outside of Australia. Global volatility over the last 12 months, while challenging, has enabled Goodman to actively pursue long-term growth opportunities to set us up for the future.
We continue to make strategic site acquisitions that will provide us with the flexibility to meet growing demand for data centers and capture future growth in logistics, which will be driven by increased mechanization, software, and AI to help boost productivity. We took the opportunity to fortify our capital structure for the future, with a raising of AUD 4 billion of equity in February for the group. We also expanded our partnership platform to make sure we can fund the significant data center development opportunities comfortably. The scale and potential benefit of which is significant. We're living through a profound transformation where artificial intelligence and machine learning aren't just tools to enhance productivity, but are fundamentally reshaping the way we live and the way we work. We're enabling the change with our logistics and data center properties to not only help our customers become more efficient, but also to grow.
Data centers currently make up 57% of our global work in progress. This is also expected to increase significantly, and we're on target to have 500 MW of data center development underway by June 2026 in key global cities. The development program of this size and scope is ideally suited to co-investments through capital partnering, which we've successfully deployed at Goodman over many years. In FY 2025, we established new data center partnerships in Europe and Hong Kong, and we've recently launched a data center partnership in Australia and are preparing to launch another in Europe during this half. I'll now hand over to Nick to take us through some of the results.
Thank you, Greg. Let's turn to slide 15. We'll first cover the items that relate to our cashback measure of earnings, which we call operating profit. As usual, this excludes unrealized fair market value movements on properties, mark-to-market of hedges, and the accounting fair value estimate relating to our employee long-term incentive plan. FX movements had an immaterial impact on the translation of our foreign denominated operating result for the year, so we can just focus on the key drivers of performance. Starting with investment earnings, which increased by 20% or AUD 111 million over the year. The GNAP reorganization in the first half influenced the composition of our investment earnings. We had property come directly onto the balance sheet and reduced investment in the partnership. Overall, our capital allocation to direct property was up by AUD 3 billion over the past 24 months.
As a result, we had nearly AUD 80 million more rental income from our direct properties. The bulk of our investment income comes through our co-investments in the partnerships. Our net investment into the stabilized property and partnerships was only AUD 200 million over the past two years. Compared to last year, cornerstone investment income increased by AUD 31 million as a result. Like-for-like rental growth accounted for AUD 1 9 million of the increase, and net investments contributed less growth this year because of the capital movements I just discussed. The portfolio remains 15% under-rented, and we see this continuing to support MPI growth going forward. This takes account of the recent decline in market rents in China, which have also been factored into the valuations. Over time, we want to grow the investment part of the business as we continue to expand our portfolio of assets under management and our share of it.
Continued development and new investments funded jointly through creation of new partnerships and growth of existing ones should support this. Management revenue was up by AUD 61 million. Total fee revenue, as a percentage of average stabilized third-party AUM, was 1.3% for the year. Performance and transactional revenues contributed AUD 372 million this year compared to AUD 331 million last year. Our total portfolio stood at nearly AUD 86 billion in June. Of this, AUD 72 billion was in external assets under management, and within that, the stabilized portion averaged AUD 66 billion this year. That's down marginally from AUD 67 billion last year, and that's why the growth in base management revenue was muted. In terms of the outlook for this segment, we expect our third-party stabilized AUM to grow over time. By the end of June 2025, it had already exceeded AUD 67 billion once again, which was AUD 4 billion above the June 2024 level.
This will be further increased when we complete the new U.S. partnering arrangements for the former GNAP assets. Over the medium to long term, our strategies continue to expand our partnership arrangements and complete the data center developments. This will also be a contributor to growth. We remain comfortable with the long-term guidance of fee revenue representing over 0.9% of third-party stabilized AUM. Our realized development earnings are up by AUD 62 million. Included in these results are AUD 253 million of operating profits that relate to the reversal of prior period revaluation gains on properties that have now been sold. As a reminder, this relates to the gain on assets that have been subject to fair value movements between commencement and sale. We don't reflect these gains in operating profit until the transaction is complete.
So those profits aren't double counted over time, we notionally offset them against the current period valuation results when we do our reconciliations. The movements in our development work in progress have been and will be a little idiosyncratic in the near term. That's because we pause to consider the best alternatives and uses for our properties, such as multilevel logistics and data centers. We're in the process of commercializing several of the data center sites, which will tend to increase work in progress over the coming years. In fact, we expect it to exceed AUD 15 billion by the end of FY 2026. Our current work in progress represents an annualized production rate of over AUD 6 billion. Again, that's down marginally, but the additional work we expect to undertake in the coming year will see this increase. Given the longer project duration, we also expect appropriate margins to compensate.
At the same time, we're originating a significant volume of work on the group's balance sheet or in specific development partnering arrangements. That means a higher realization rate. In other words, a greater portion of the development income reflected in our operating results rather than a share of revaluation gains. We aim to optimize capital allocation and realize margins on developments to achieve an acceptable risk-adjusted return whilst maintaining our focus on operating EPS targets and our financial risk management objectives. The data center partnership initiatives we're embarking upon are consistent with these objectives. We're enthusiastic about the prospects for development demand overall, which bodes well for future revenue as well as growth in AUM. The increase in our operating expenses has been moderate once again. We're managing the growth in data center-related resources very carefully.
We had a AUD 52 million turnaround in our net borrowing costs, which resulted in us showing net income of AUD 34 million. This was mainly the result of the increase in interest earned on cash, which was AUD 86 million this year compared to AUD 39 million last year. Our directly owned development assets have increased by AUD 1.2 billion, so capitalizing interest is also up by AUD 53 million. These have been partly offset by the higher borrowings, mainly through the new bonds issued in the first half. Our cost of borrowings on our loans is currently around 4%, but taking into account our interest rate and currency hedges, the net WACD is around 1%. As far as the non-operating items are concerned, we had over AUD 200 million of unrealized valuation gains net of DTLs. That represents the group share of the AUD 1.6 billion across the entire portfolio.
From that, we deducted the realized valuation gains to get to the AUD 41 million net result you see in the table. Cap rates declined by 9 basis points over the year to 5.1%, and market rents increased by 1.4%. Another customary area of difference between operating and statutory profit is the fair value movement on hedges. The late rally in the AUD was the main driver of the loss, but this is more than offset by the AUD 463 million movement in the FCTR. As usual, we exclude the LTIP accounting costs, but we include the tested units in the denominator when calculating our operating EPS. The decline in the accounting costs this year was influenced by the movement in the security price on the ASX. A few remarks now regarding the balance sheet on slide 16.
Our share of the stabilized assets in the partnership were up by AUD 1.2 billion over this year. The revaluation gains, new investments, development completions, and FX translation were partly offset by the disposals. Compared to June 2024, our development holdings are up by AUD 0.3 billion overall, with the additions, valuations, and FX translation offsetting completions and sales. Given the current activity levels, our direct working capital allocation to the group's inventory and investment property under development increased by AUD 1.2 billion, whereas our share of the development capital in partnerships decreased by AUD 0.9 billion. This is consistent with the higher-end capital intensity of the new projects, as well as a higher portion originated on the balance sheet. The progression of this part of our balance sheet is in line with our expectations at this point. We have substantial remaining development working capital capacity following the raising this February.
We also expect to partner some of these assets we have on the balance sheet in the coming year. This will give us further capacity to fund more activity as we move through our power bank and industrial developments. Our cash position increased materially during the year, mainly through the recent equity raising and bond issue. Overall, we generated AUD 2.3 billion of cash earnings in operations. AUD 1 billion of this is reported through the operating cash flow statement. However, the statutory statement of operating cash flow includes a net AUD 200 million of expenditures for growing development inventory, which accounts for part of the difference between operating profit and operating cash flow. This is typical for a growing business like ours. There's also around AUD 200 million of earnings arising from the sale of properties which are included in investing activities for statutory reporting purposes.
That's either because they were in investment property under development and not in inventory, or they were sold from within a partnership. This is not unusual for us either. Some transactions were again settled by way of net equity, so over AUD 200 million of earnings were shown as nil in the cash flow statement. We view these transactions as operating cash inflows and investing cash outflows because the reinvestment decisions have been made separately. This is consistent with our distribution policy and capital management planning, which is the retention of operating profit is designed to fund the growth of our investments. As a result, you'll see the increase in our net assets is more than AUD 1.7 billion higher than the increase resulting from the equity raising and movements from the cash flow statement.
That's even after taking into account the non-cash items such as the accounting cost of the LTIP, balance sheet effects of hedging, and the unrealized valuation gains. We also have capitalized interest on development properties going through the operating cash flow statement, so the combined effect of these development-related items explains around AUD 700 million of the difference between operating cash flow and operating profit. As usual, there's a timing difference between distributions received and income recognized in the partnerships, performance fees, and incentive payments. Along with the equity settled income and other working capital items, these collectively accounted for the remaining AUD 650 million for difference. What you can see, though, from slide 17 is that we have significant financial capability to help manage risks and capitalize on suitable opportunities that may arise.
The creation of the new partnerships for the current round of data center developments will enable us to recycle capital and maintain balance sheet strength. That's all for me. Thanks, Greg.
Thanks, Nick.
Goodman Group is in a world position to capitalize on opportunities ahead, whether it's delivering more sophisticated logistics facilities with advanced robotics or building low-latency data centers to power the digital infrastructure of modern life. Goodman Group's competitive advantages are clear. We have the right land, power, people, projects, and partners to deliver. Goodman Group has the planning capabilities, the skill sets, and the proven ability to build complex infrastructure. Our intensive data center development program over the next year also requires a strong capital base, and we continue to expand our partnership platform to co-fund the development program alongside the group with two new partnerships in Australia and Europe. Our long-term focus means we continue to invest in the strategic infrastructure in the high barrier to entry markets. We're acquiring significant sites that offer future regeneration potential for high-value logistics, data centers, or both.
Our forward planning has meant that we have secured power for our land and locations where power supply is now very constrained, and the barriers to entry are only getting higher. Looking ahead to FY 2026, work in progress is growing, and while industrial has been quieter, it's expected to pick up over the next 18 months. To take advantage of these opportunities, you need capital, partnerships, and the ability to develop complex infrastructure. The team remains focused on execution, optimizing returns, generating sustainable long-term growth for investment partners and our security holders. The group is targeted to deliver operating EPS growth of 9% for FY 2026, which equates to over AUD 2.6 billion of operating profit. Thank you. Nick and I will now take questions.
Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. Your first question comes from Kane Hannan of Goldman Sachs. Please go ahead.
The questions, maybe just in terms of the guidance and sort of a two-parter. Firstly, obviously 9% earnings growth next year. You obviously do have a pretty tough comp from a management fees perspective this year. Just help us understand a little bit some of the moving parts going forward, sort of where you see development earnings into 2026. As a follow-up to that, just the comment in the outlook about being well-placed for long-term growth. I don't think I've seen you make those sorts of statements before in your guidance slides. I was wondering if I'm reading too much into that, any reason for sort of that inclusion this year? Cheers.
Yeah, in terms of the guidance for in relation to the FY 2026, this early in the year, we have a lot of opportunities and options open to us. The composition will be determined ultimately by which opportunities we bring forward and how we bring them forward. We have an eye on performance fees, developments, starts, completions, and transactions. We've been doing this for the same thing for, I've been here for 20 years and longer. It's typical for us to manage the overall position rather than individual line items. We're not explicit about guidance, but what I will say is that the development side of the business has probably the most propensity for growth in the coming year, given the opportunity set that we have in front of us.
We talked about our work in progress growing, the establishment of new partnerships, half a gig in work in progress at that point in time by June next year. They're all really, really strong metrics and really good tailwinds, particularly for the development business. As far as the long term is concerned, that's really, it's an interesting point. I mean, it's a little bit left, it's a little bit unsaid, except that if you look at, for example, the way that our remuneration is structured, it's got to be consistent growth, and it's got to be done in a way that's risk managed. I suppose we take it for granted, and maybe we have in the past, but we're structuring the business so that we can continue to deliver consistently in a risk-adjusted way over a long period of time.
That's what I think Greg's talking about here, and that's what I think shareholders should be accustomed to, and that's what we're trying to achieve. Whether it's, I don't know that it's new, maybe the language explicitly is new, but certainly the trajectory and the objective is not new.
That's helpful. Just lastly, back at the 3Q, we're talking about building out the data center delivery and ops teams, obviously Craig being one of the big hires there. Do you think your data center team from a people perspective is now complete? Has there been any sort of changes or minor changes in strategy as they've come on board and seen the Goodman Group portfolio and strategy? Just interested for you to talk about that, please.
Good question. We've got the right people in place to build through. We will continually build out our operating expertise. We've got the right chiefs in place to do that. That will be done over the pursuant years as we identify what centers will be operating and which ones we won't effectively. There's about 300 people in Goodman Group out of 1,000 that are basically the data center team now when we look at it globally. That is all through the discipline of getting these up and down in a way where we're going to be doing it or are doing it over a number of geographies and countries. We're well-resourced. We understand what we're doing. We are doing it. Effectively, that team will expand at the operational level as we start moving through the completion stages and the operational stages.
Cheers. Thanks very much, guys.
The next question will come from Lou Pirenc of Jarden. Please go ahead.
Good morning, Greg and Nick. A few questions from me. First of all, on the partnerships, I thought you were working on one big global capital partner, and now you're introducing more regional ones. Is that a change? Is that just how the negotiations have gone? Can you give some more color there?
Yeah, Lou, it's timing effectively right now. We talked about Europe today. We've got a 425 MW program that's ready to go vertical, and it's ready to go vertical in the next six months, and some is already going vertical. It comes down to what's expedient, what makes sense, what's doable today, and that is the way we're going because it makes sense and it's doable, and we can get it done. It's obviously a significant bank of opportunity for us, and we don't need to complicate it with any other parts of the world. I think it's also preference for investors. I think investors are working geographically in regard to Europe.
You've got a very, very, very strong market in Japan for capital, and also down in Australia where we've launched a partnership here, which is asset-specific, being the Artarmon net asset, which is coming out of gate, new structure, new capital, and that is, you know, in excess of AUD 2 billion completion sitting by itself because the size and scale of them allow us to do it. We've looked at the whole enchilada, we've looked at the whole menu, and we've decided this is the way to go, and now we're executing after spending the last six to nine months working through it.
Will that then sit in an asset-specific partnership as well, or you haven't worked out three yet?
U.S. will have its own partnership, and there's a number of sites and a number of things we're doing in the U.S. at the moment, but there'll be a specific partnership in the U.S. We've talked about the European one. The U.K. will have its own separate partnership because the capital and the opportunity there is also extensive. You look at Japan, and we've got over a gig of opportunity at the moment. That's a AUD 30 billion+ ticket at the end of the day. They're big. They need to be well-funded, and we're into it, and we're on with it right now.
Great. Finally, on the GNAP partnership or the second part of that, that also seems to be taking a bit longer than what you had maybe indicated previously. Can you talk us through progress there?
No, we've just been going at a steady pace. There's been a bit of volatility around the world, Lou, in regard to tariffs and things, and we've just been taking a little bit more time and choosing the right time to finalize that. I don't think we're too far away.
Yeah, I think, Lou, the section 899 in the OBBBA, the redaction of that, you know, that potential tax kind of helps. It created a bit of noise and turbulence in the last few months, but now that's cleared, we can move forward.
Great. Thanks, guys.
Our next question today will come from Howard Penny of Citi. Please go ahead.
Thank you very much. I've just got a question on the progress on the 500 MW that are targeted and set before June 26, and also just that stabilized number being upgraded to 700 MW. Could you just give us a little bit more detail on how those are progressing and maybe just a little detail on the 700 as well?
I think the progress, Howard, is relatively clear. We talked today about launching the Australian partnership. That's specifically for Artarmon, which is over a 90 MW data center. Effectively in Europe, the series we are funding at the moment to move forward is over 400. We're going to be in excess of 500 comfortably by 2026. In Europe, we're already moving those developments along, and they're actually, some are starting to come out of the ground effectively with all the groundworks and the transformers and things that you require to keep it moving forward. We're right on target. We are talking metro. We're not doing gigacenters anywhere in the world in these numbers. They're all metro. They're all prime. They're low latency, cloud-orientated, good demand, and we're building into that demand, and we're getting on with it.
Just on the stabilized, that's the completion in Hong Kong, which went into stabilized this quarter.
Yes.
Thank you very much. Just unpacking that 2.7 GW, the secured power number, do you have any guidance on expected timelines for bringing that into eventual construction and work at any time?
Yeah, I think let's get on with our + 500. We've got a big program. There are different stages in Australia. We've started one. There's a number of opportunities in this country as well. I think we'll just get on with our + 500. Capital and customers is the big focus for this year. I want everyone to think about that. You need the capital. The barriers to entry on this data center program around the world for everyone, the barriers to entry are getting higher. Things are more expensive. They're taking longer. Effectively, if you don't have it well capitalized, you can't proceed and move forward. On the customer side, you need to be building. You need to be advancing. You need to be giving the customer a date of 27 today. Otherwise, you might as well pack up your bag and go somewhere else.
This is becoming a very, very big, and you'll see it through the numbers coming from other participants. This is a very, very big capital exercise. Goodman Group is super focused on the capital side of it currently, and the customer side of it is all in hand and under negotiation.
It's been well done on great results.
Thank you.
Our next question will come from Simon Chan of Morgan Stanley. Please go ahead.
Hi, good morning, guys. Hey, Greg, just wondering if you could give us a bit more color on Europe and Australia, the partnerships you have launched and you're preparing to launch. In Australia, just wondering, you said you've recently launched a data center partnership. Is that just a launch, or have you actually gotten capital partners in already? With Europe, just give us some color on the proposed.
Yeah, our definition of launch has meant we've put it to the market. We've got an IM out, effectively bringing the information memorandum, and we're qualifying investors and taking it through. You'd be aware that the data center in Artarmon is owned by one of Goodman Group's partnerships. It would be fair to say that a number of the partners in that partnership are pretty interested in participating, but we're going to participate outside the industrial partnership. It's specific, very similar to what we've done in Hong Kong. When we did talk about Hong Kong, we made it clear that was going to be the approach we take. We don't mix the industrial risk and reward and the data center. It's a specific piece of infrastructure. That's what we're doing there.
In the European context, what we're saying today, we are going to launch, which means we are going to launch, which means we haven't launched yet. We don't launch unless we are obviously very confident that the capital, who we know very well and have in many instances been working with for 20 years, are not there. The terms have got to be right. Effectively, we're doing it with confidence, not a thumb in the air, if you take the analogy.
Does your FY 2026 guidance include the assumption that these partnerships will be launched and therefore potentially contribute to the EBITDA, just like the Hong Kong partnership contributed to EBITDA in 2025?
Yeah. Look, it's a very big business across the world. As you know, 70% of the earnings come from overseas. There are many opportunities, I think, as Nick pointed out in his presentation, to make sensible long-term decisions that will keep the Goodman Group growth profile going on a nice steady trajectory. With an eye to capital, and I can't overemphasize it enough, that data center infrastructure is capital intensive, and the people with the capital will do very well. The ones that don't can't play. Just make that very, very clear. You're talking about AUD 1 billion a throw or AUD 1.5 billion a throw in regard to cost. Capital is critical. Otherwise, everything else becomes a little bit irrelevant.
How's customers' negotiations going, Greg? I noticed that you talked about how a lot of your data centers and work in progress that you have kicked off or will be kicking off are fully fitted. I'd assume that you would have made that decision after some discussions with potential customers, right? How's that side of things going?
Yeah, customer side's good. I think I don't have to tell you. You can read the newspaper and everything else. The growth in the industry is there. The customers are there. What you've got to do is give them a tangible opportunity to give them a date when they can plug in, to be quite frank. That's where we're with the customers at the moment. We're working with them on dates when they can, you know, plug in and go. Effectively, that means you need to be starting them and you need to be shortening up the timeframes to delivery. That might be delivering a floor of a building, it might be delivering half a floor, it might be delivering the whole thing. What we don't have in the + 500 number we're talking today, what we don't have in it is any of the power shell type operations.
We may be doing some of those around the world, but they will be basically pre-let. Effectively, they may not be the centers that we decide to hold long-term either because metro is what you want to own, in my opinion. Metro is the stuff that is really hard to get. Metro is the example of an Artarmon or the example of an LAX01 or the example of a Paris, right? When we talk about what we're building, that is what we're building. You might see in addition to what we're talking about, some AI factories in different parts of the world. We'll handle that a little differently, but that's not what we're talking about today.
Right. Despite not having any formal agreement for lease, do you have any LLIs at any of your projects at the moment?
We have a number of negotiations going on in a number of places, and I won't prejudice any of them by making any further comments.
That's really good. Thanks, mate. Cheers.
The next question will come from Ben Brayshaw of Barrenjoey. Please go ahead.
Oh, hi, Greg and Nick. Thanks for the presentation. Just had a quick question on the fully fitted assets that you're putting into production. How are you thinking about the time period to stabilization in terms of achieving the forecast development yield from the point at which you reach practical completion?
Yeah, you're talking about 2028, 2029, and 2030.
Yeah, could be one or two years post delivery?
No, you're building out the mechanical, electrical, and the plumbing fit-outs. Effectively, you're in these things for a few years, and then you're delivering them over a period of stages. The good thing about this business is you'll find work in progress grows, and I think Nick indicated it'll be + AUD 15 billion this year, and let's see how much plus that is. Effectively, you start to build a very, very big workbook over a number of years, and we're going to be basically looking at the program of sales, stabilization at different stages.
For example, if one's pre-let early to a major hyperscaler, you can actually have that sold on out of a development partnership really early on if you wanted to do so, or you're doing it floor by floor over a period of time, maybe an asset we're operating, and that could be longer and work in progress. There's going to be a portfolio effect of all the above, but it is going to get big. It's going to get capital intensive, and I go back to my earlier comment. It's capital and customers is the focus for FY 2026.
Thanks for your time.
The next question today will come from Richard Jones of JP Morgan. Please go ahead.
Thank you. Just two quick questions. Is Artarmon a Q1 start, Greg? If so, does that make it the pro forma with about AUD 15 billion today?
It's + AUD 2 billion, and it's not on work in progress at the moment, and it's starting imminently.
Okay. Thank you. Just in terms of the U.S. assets, there's AUD 3.6 billion on balance sheet. Can you provide a bit more color? What is development assets, what's core plus, what's stabilized, and how much you envisage going into the new core plus partnership you're flagging, and what will stay on balance sheet?
Yeah, Richard, you can see, actually, if you look at our balance sheet, the assets held for sale is a pretty good guide as to what's going to form the new partnership. That's a combination of that. It's about 2/3 stabilized and a third value-add, although I would argue that that whole portfolio is eventually value-add given the reversionary capacity, redevelopment potential, and so on. In the short term, that's the mix. In terms of the rest of the assets, I would say I think it's about 80% stabilized and 20% development. The development stuff, we're happy to keep working through. Really good developments and happy to continue with those. The stabilized portion, good assets, happy to hold them, great reversion in there. We'll look to bring partners in over time if it's appropriate and recycle that capital as well. We have plans for that.
Certainly, the developments are great opportunities as well.
Okay, thanks.
Our next question will come from Tom Bodor of UBS. Please go ahead.
Good morning, Greg and Nick. I'd just be interested in the U.K. You bought some land in Luton, and I think it's got a data center component to it. Could you talk to how much that particular part of the Luton site could add to the pipeline?
Yeah, look, we bought it as industrial. I think that's important, the second Luton site. The first Luton site, we're in a power process at the moment. It could add to it depending on how much power we get. It could be helpful in piping it down the road. Best guess at the moment, it will be industrial and data center mix on that site. Yeah, but look, good site bought well. We're in the power process in the U.K., which is a U.K. process, which is pretty, you've got to be very patient effectively. There's a big power feed, two great sites, and would work very well. We're just in that process.
Okay, thanks. In terms of gigawatts in the U.K. in your five, is there a number that you've got in the five today absent that?
No, we've got different power applications. Some confirmed, some not. We're just working through them all. Europe's the big announcement today. That's where we're going vertical. U.K. will follow. I think we'll be talking about that in the 2027 year, not the 2026 financial year. I think focus on Europe, that's big one. Australia's big. The U.S., as you know, we're LAX01, we're going vertical, and that's looking very good.
Right, thanks. The other question I had was talk of the CSR site near Western Sydney Airport in the press today that you're looking to possibly buy that land, which is more fringe. Just be interested in the thinking behind that, given it's less of that infill focus you typically have.
Yeah, look, we like the infrastructure out there, the roading, everything else. We're full up in Oakdale, quite frankly, a couple of pads left. We're done. We've got AUD 6 billion or AUD 7 billion we've developed out there with our partners. It's just the next iteration for us. It's the right price. It's a big site. We can do big sheds. We can do 50s and 60s and those sorts of things, which is important. Some have got restrictions around it. We're into it. We're excited about it, and it'll go well.
Right, thanks.
The next question will come from Andy MacFarlane of Bell Potter. Please go ahead.
All right, guys, just one for me. On CapTrans, can you just talk about over the period, whether you were net buyers or sellers, what are the types of things you've bought and sold? Obviously, you've sold some stabilized stuff to SIP and someone just mentioned the CSR site and Gibson Island as well. Just keying on some color overall net and buy and local versus global such a game.
Yeah, look, good question. We constantly look at our portfolios around the world, and this is a global scenario. I think we just moved about GBP 100 million in the U.K. of stabilized stuff. We're looking at the new generation of assets all the time. What's going to give us better returns moving forward? We're always doing that, and we have been doing that. We've been selling assets. We are selling some in Australia currently as well at the moment. We're replacing that capital, if you like, with our investors into brand new sheds, new developments with good infrastructure around electricity, pretty much infrastructure, because the big sheds of the future, there will be no one working in them. They're all robotic. There'll be AI software generated. Effectively, you need more power, and you need more ability to do it.
We just keep refreshing what we own, the AUD 80 billion we own around the world. We keep refreshing it. We'll keep doing that. It's just part of our asset management plan for us and our investors.
To clarify, were you a net buyer or seller this year, and what do you expect to be for 2026?
Yeah, I don't do that calculation, but I suppose Nick might have it.
I mean, we're a net investor. I don't think we've been a net buyer in FY 2025. In FY 2026, you know, we manage an overall capital management plan. The ins and the outs are managed. We manage our financial risk management. We don't have a target for this sort of thing. Every day is a new day, and we manage the balance sheet and cash flows on a daily basis.
Thanks, guys.
The next question will come from James Druce of CLSA. Please go ahead.
Yeah, hi, good morning, Greg and Nick. Thank you for taking my questions. This might be in the present. You might have mentioned this, but of the 0.5 MW that you're talking about, say, in June, how much have you started to date?
I think, Nick, you go. We throw another AUD 150 million in. Yeah, yeah, so there's AUD 100 million or so in work in progress at the moment. You're talking about, or what? Sorry, let me just understand your question.
Just on your guidance on starting 500 MW by June next year, what you've actually started off that guidance too.
Yeah, there's 300 in at the moment.
Yeah.
Okay.
Now, some of that will come out. No, but some of that will come out as well, right? There are some shelves in Japan, which are finishing effectively. There could be a couple of things sold out of that as well, sold early, and I think we've got some discussions about that, like selling it to an operator that wants it. Some of that will come out. Net net, if you look at what we're talking about in Europe, and we've given you a guide, there's 400+ MW there. There's 90 down the road. We're going to be through 500 quite comfortably if we just start all that program. That is ready to go. This is not waiting for something. These are powered, ready, planned. We have the construction contractors, final costings. We're starting to build. We're buying long lead items. These are going, and they're going up, right?
Yeah, yeah, okay. Just to clarify, that 0.5 target is what's going to be in work in progress, not what you start to June 2026 in terms of you providing that guidance at the.
Yeah, 500's a guide. It'll be more than 500 if you sort of add up what we're chatting about on the page. If we decide to kick it all off, it'll be more than that, right? 500's a pretty safe number.
Okay, thank you. In Europe, is that the 425 you're talking about? Is that mainly Paris, Frankfurt, and Amsterdam, or are there others in there that you've been able to progress?
We're progressing a lot. I think your first comment was right.
Okay. Just on GNAP sell down, is that material to guidance? Is that in guidance? I mean, how should we be thinking about it?
No, it's not, but it's a capital rotation matter, but no.
Okay. Just on a pretty simple question around performance fees this year, I'm guessing it's going to be a pretty low number, Nick.
Sorry, James, I didn't hear your question. Say it again.
Sorry, just on performance fees this year, I'm guessing it's going to be a lowish number when you look at the all-in sort of form. I think you did 1.3% of all-in fees last year. How are you thinking about this year?
That's why we just say, you know, work on 0.9 as a starting point. You know, it's been a number of years since it's been that low, to be fair. I think if you just work on 0.9 as a kind of through-the-cycle number, that's a good place. If that's where it does end up, you're right, it will be a lower number. You know, we're working hard to make it a bigger number.
Yeah, yeah. One more, if I may, be greedy. Just on completions next year, I know you guys look at production as the best way to look at the business, and I agree with that. I'm just hoping you could give us a feel for what you can see completing through the development pipeline this year.
My best guess is somewhere between AUD 3.5 billion, AUD 4.5 billion in terms of completions. We've got a bunch of stuff completing in the September quarter, particularly as we run off the last remnants of the development management stuff we had in China. That's going to boost completions in Q1, and then it's just the natural flow. I think we talked about this last year, right? We sort of paused going through a period of switching from industrial to data centers. There is just going to be this period of trough and then acceleration. That's kind of the best guess at the moment. At this point in time, that's consistent with the AUD 15 billion and the starts that we've talked about.
Yeah, no, that's clear. Thank you very much for taking my questions.
No worries.
The next question will come from Caitlin Brammer of Macquarie. Please go ahead.
Morning. Thanks for taking my question. Just on customers and Greg, you alluded to the discussions you're having there. I just wondered if you could give us a little bit of an idea on those kind of key dates around when you see customers being able to plug into the key data center completions in the next 12 months, 12 to 24 months.
Yeah, if you're building a shell, it's pretty straightforward. We're not. The program, we may be, but it's not in the numbers we're talking to you today about. That'll be addition too. There will be some shells we do and some stuff we turn over in the process. We've got discussions on those, but that's not what we're talking about today. Primarily, we're talking about the fully fitted MEP program, which is the stuff we want to partner with and we want to own long-term, to be clear as well. The metros are what you want to own, in my opinion. That's no different to our strategy around what we did in industrial for many, many years. We like the stuff around the big cities. Same approach on data centers.
No, look, effectively, if you think about the customers, you've got to get customer dates of 2027, 2028 in regard to getting them operational. Otherwise, you're not going to have a substantial conversation. That's where we're at. You'll find customers in buildings when we get them finished, and you're getting them finished the end of 2027, 2028, 2029 of the full build-outs. A shell, we can turn that around a lot quicker. There will be a number of those as well. We just haven't talked about them today.
How far in advance is it that you would be able to sign them where they've got sufficient visibility? Six, 12 months?
Six or 12 months before completion. No, you'll be a year and a half out. Things like that would make sense. Negotiations aren't months and weeks. They're months by the time you go through the designs and everything else. You'll be in negotiation for three to six months on these things. You need to keep moving the infrastructure forward because it's real infrastructure. There is a lack of supply in the locations we are building out over the next 12 months. There's a lack of supply of product. Customers want it. We've just got to marry the two together, and you need to be pushing it forward. You need the money. You need to be able to take the risk, which means you need the money, right? When I said customers and capital, it's capital and customers in that order. You need both. Otherwise, you can't pay to play.
You can't play, right?
Yes.
Which is a great barrier to entry. I think that what makes this sector at the moment around the world really interesting is because all we see is it's all got harder. Power has been used in most markets, and effectively, any new power primarily has to be built infrastructure by the utilities and the operators. That comes at a cost, and it is also creating a bigger barrier to getting this thing done in a quicker timeframe. The environment's pretty good for what we're starting off in those metro locations, which is super hard to get the power, and it takes you a long period of time. We're in a good spot.
We shouldn't anticipate any major contract announcements on the fully fitted data centers in this calendar year. It's a 2026 kind of story.
Yeah, you'll be, we won't be able to talk about them. It'll have to be anonymous because we're not allowed to talk about the customers. We've got NDAs signed with all of them around the world. Everyone knows who they are, but we can't talk about them.
Just a couple of.
We will let you know whether the building's full or not. Yeah.
We're reporting through the very least levels in our development with analysis. You'll be able to see there.
Okay. Have any of the data centers transitioned in this period from powered shell to fully fitted?
No, the primary in the 300 at the moment is the shell program out of Hong Kong and out of Japan primarily.
None of them have switched from powered shell to fully fitted. Actually, no, we've increased the expenditure we think that we'll make on LAX. Actually, whether it's a full change, it's not really a full change, but we have increased what we expect to invest in that as to how far we'll go on the MEP.
Yeah, it started as shell. Now we've ordered all the long lead items, and we've got a program to build the whole thing up. That's the change.
Yeah, just one other one, just going back to capital, is the trend to do these outside in SPVs as opposed to in the funds, or is that just the luck?
The significant data center programs will not be done inside the industrial partnerships, in my opinion. That's the recommendation to our partners. What we will do and what we are doing is giving them the opportunity to participate, but in a new venture, which is more aligned and the governance aligned with the risk and reward that everyone's taking.
If I just look at my last one, just around your ability to replenish or add to the pipeline at the equivalent kind of yield on cost and returns that you expect to generate out of the existing asset.
Look, we've got a lot of land sitting on our own balance sheet at a historic cost. It's pretty hard to go out and buy too much. To be honest, I think we've seen what's happened with Western Sydney land values. That's why we're pretty happy to pick up that site out by the second airport, to be honest. It's pushing land values in certain areas, but Goodman Group has a wealth of opportunity within what we already own, which is great. There will be some additions, we think, in the U.S., which is a big market and the biggest market clearly in the world by a factor of a number of times. That is a market where there are a couple of opportunities, and we'll see how that plays out. We've got a big pipeline of assets.
They're in the right locations, and I think we're in good nick moving forward without going to the market and obviously trying to compete for sites.
Thanks so much.
Our next question will come from James Maydew of Macquarie Asset Management. Please go ahead.
My question's been asked. Thank you.
Thank you. Our next question will come from Albert Leung of MUFG Bank. Please go ahead. Albert, your line is live on our end.
Yeah, maybe you can kill that line. Thanks.
Pardon me?
Yeah, there's no question there, so you can move on.
Okay. At this time, there are no further questions. I'd like to hand the call back over to Mr. Goodman for closing remarks.
Thank you very much, everybody.