Goodman NZ "Growth story remains underpriced" (Buy) Murphy

Research evidence excerpt

Goodman NZ "Growth story remains underpriced" (Buy) Murphy

Global Research

26 May 2026ab

Goodman NZ Equities

New ZealandGrowth story remains underpriced

Real Estate

12-month rating Buy

GNZ reports an in-line result and strategic progress...

While today’s FY26 result was broadly in-line with our expectations, we believe the 12m price target NZ$2.30

market continues to underappreciate GNZ’s earnings growth potential from its funds Prior : NZ$2.40

management platform and development pipeline. Especially encouraging in today’s

Price (26 May 2026) NZ$1.95

result were: 1) continued strong leasing momentum, with >20% rental spreads driving

~5% LFL growth; 2) meaningful balance sheet strengthening following ~$700m of RIC: GNZ.NZ BBG: GNZ NZ

capital recycling, lowering look-through gearing to ~20%; 3) ongoing execution across

Trading data and key metrics

the development pipeline, including Felix Street (develop-to-sell), Mt Wellington

52-wk range NZ$2.29-1.85

regeneration and Waitomokia; and 4) tangible progress on power infrastructure at

Penrose supporting data centre optionality. Management did, however, also note that Market cap. NZ$2.98b/US$1.74b

while enquiry remains strong, decision-making timelines have lengthened in recent Shares o/s 1,531m (ORD)

months amid macro uncertainty. That said, with increased capital flexibility following the Free float 68%

transition to a corporatised and stapled structure, we see GNZ as well positioned to Avg. daily volume ('000) 937

deliver ~5% annual earnings growth in the near term; Maintain Buy. Avg. daily value (m) NZ$1.8

Common s/h equity (03/27E) NZ$3.31b

...though F27E guidance is below us... P/BV (03/27E) 0.9x

GNZ reported FY26 cash earnings of $123m, up +6% vs. pcp and broadly in-line with EPS (UBS, diluted) (NZ$)

our expectations.