Industrial property developer Goodman Group has announced a A$4 billion capital raising after unveiling an increase in half year profit.
The company said it would issue 119.4 million new securities at $33.50 each, a 6.9% discount to the closing price on Tuesday, through a fully underwritten pro-rata institutional placement.
Goodman, which develops warehouses, distribution centres and business parks in several countries, said it would also undertake a non-underwritten security purchase plan for eligible securityholders to raise up to $400 million.
“The proceeds raised will provide working capital and financial flexibility to assist over the short and long term. It will enable the Group to advance the execution of its strategy, accelerate a large program of data centre
construction, and optimise risk and return,” founder and CEO Greg Goodman said in an ASX announcement.
The company also said operating profit rose 8% to $1.22 billion in the six months to 31 December 2024, and operating earnings per security (OEPS) increased by 7.8% to 63.8 cents.
Statutory profit was $799.8 million, compared with a loss of $220.1 million in the prior corresponding period, while revenue surged 25.2% to $1.339 billion.
Directors declared an unchanged unfranked interim dividend of 15.0 cents per share to be paid on 25 February to shareholders on record on 31 December.
Goodman said the global opportunity provided by the increased demand for data centres was driving the positive outlook for the group.
“With access to power on existing sites in metro locations, and proven track record in delivering complex infrastructure developments, Goodman is well-positioned to benefit from this demand,” he said.
“Supply remains constrained in our locations, and combined with our attractive development workbook, provides opportunities to optimise our capital allocation and support future growth – particularly in the data centre space.”
He said the company expected to maintain 9% OEPS growth for FY25 which includes the impact of the equity raising and without it growth guidance would have been increased to 10%.
Goodman shares (ASX: GMG) had finished at $35.98, up 75 cents (2.13%) on Tuesday, capitalising the company at $68.78 billion.
