Goodman Group Business

1. Company overview

• Founded: 1989

• Founder: Greg Goodman

• Headquarters: Sydney, Australia

• Listed: Australian Securities Exchange (ASX)

• Market cap: ~A$80–90 billion (varies with market)

• Index: ASX 20

Goodman operates globally across Australia, Europe, Asia, UK, Americas.

2. Business model (how Goodman makes money)

Goodman is not a traditional REIT. It runs a capital-light, fund-management model.

Core income streams

1. Property investment income

   • Rent from logistics & industrial properties

   • Long leases, high-quality tenants

2. Development profits

   • Builds warehouses, logistics hubs, data-related facilities

   • Often pre-leased before completion

3. Funds management fees

   • Manages capital for:

     • Pension funds

     • Sovereign wealth funds

     • Global institutions

   • Earns stable management & performance fees

 Goodman usually co-invests a small amount of its own capital alongside partners.

3. Property focus

• Logistics warehouses

• E-commerce fulfilment centres

• Cold storage

• Data-centric industrial assets

• Urban infill logistics (last-mile)

Tenants include:

• Amazon

• DHL

• FedEx

• Walmart

• Alibaba

• Major retailers & 3PLs

4. Competitive advantages

1. Prime locations

• Land close to major cities, ports, airports

• Very hard to replicate

2. Development capability

• One of the best logistics developers globally

• High pre-commitment reduces risk

3. Capital-light structure

• Lower balance-sheet risk

• Higher ROE vs traditional REITs

4. Long-term demand tailwinds

• E-commerce growth

• Supply-chain re-shoring

• Data & automation

5. Financial characteristics (typical)

(figures vary by year)

• Occupancy: 98–99%

• WALE (lease length): ~5–6 years

• Gearing: Low–moderate (~15–20%)

• Strong recurring cash flow

6. Risks

• Interest rate increases (property valuations)

• Construction & development risk

• Global economic slowdown

• Tenant concentration in logistics

7. Goodman vs other property groups

Goodman is closer to Prologis + Blackstone-style fund manager than a pure landlord.

8. Why investors like Goodman

• Structural growth (e-commerce, logistics)

• Global diversification

• Founder-led culture

• High ROE, low leverage

• Proven long-term compounding

9. Big-picture takeaway

Goodman Group is a global logistics real estate platform, not just a landlord:

• Owns some assets

• Develops many

• Manages huge pools of institutional capital

That’s why it’s often considered one of Australia’s highest-quality long-term property investments.