Goodman Group (GMGSF) Earnings Call Transcript & Summary

Well, good morning, ladies and gentlemen, and welcome to the 2025 Annual General Meetings of Goodman Group. I'm Stephen Johns, your Chairman. I extend a warm welcome to those of you who are in the room with us here today as well as to the people who are online. Today, as you probably know, is also Remembrance Day, and we will observe a minute silence at 11:00 a.m. to honor the service and sacrifice of members of the Armed Forces who have died in the line of duty. I will now introduce your directors. To my left is Greg Goodman, our CEO. Our Company Secretary, Carl Bicego. Followed by independent directors, Belinda Robson, George Zoghbi and Mark Johnson. And on my far left, Anthony Rozic, our Executive Director. Also joining us from New York are independent directors Vanessa Liu, Chris Green and Hilary Spann. In Hong Kong, Independent Directors, David Collins and Kit Yi Chung; and in Europe, Executive Director, Danny Peeters. I now declare the meeting open. For those participating online, voting is also open. This year marks a significant milestone for the group, 30 years since Goodman listed on the ASX. And another significant milestone is that FY '25 was the 15th consecutive year in which the group has delivered growth in operating profit, which was up 12.8% on the prior year, and we achieved $2.3 billion of profit this year. Operating earnings per security increased by 9.8%, which included the dilutionary impact of our $4 billion capital raising in February this year. Goodman's focus is on generating sustainable returns over the long term and this is evidenced by the Total Share -- Securityholder Return or TSR, of 95% over 3 years and 143% over 5 years. The group has again demonstrated the ability to be agile and innovative in a challenging environment. This, together with the strategic location of our properties in major capital cities, have enabled the group to continue to successfully execute our strategies as providers of essential infrastructure. Throughout the year, there has been significant progress made in advancing the data center activities to bring forward substantial new development opportunities for future growth. Earlier this year, Goodman undertook a $4 billion public market capital raising. This was to support the next phase of the group's growth, particularly around data centers while maintaining a conservative debt profile. Goodman's balance sheet remains well positioned with low financial leverage. In June 2025, our gearing was 4.3%, and we had $6.6 billion of cash and undrawn lines with a further $9 billion available to the partnerships. Our partnership platform was expanded during FY '25 with the addition of new Data Center Partnerships in Hong Kong and Europe to facilitate the funding of our significant data center development program. Greg Goodman will provide more information on our data center progress in his CEO address. The logistics business continues to represent the majority of Goodman's property portfolio, which now stands at $85.9 billion. The quality of our properties in supply-constrained locations and customers who are seeking greater efficiency and productivity from their facilities continue to support high occupancy of over 96% and rental growth of 4.2%. Goodman is progressing a range of logistics and data center opportunities as customers increase their CapEx on technology and infrastructure. It's driving our development workbook, which is currently at $12.4 billion and is forecast to grow to over $17.5 billion by June 2026. Goodman is developing essential infrastructure for our customers across logistics and data centers in the major cities around the world with data centers presenting a significant growth opportunity. The planned execution of our data center program has significantly increased the complexity of our operations. Data centers take longer to build, are technically more challenging to develop and are significantly more capital intensive. The nature of our business, developing large infrastructure projects globally requires a highly specialized workforce with international skills and relationships and appropriate incentivization to deliver these complex, high quality facilities for our customers. Remuneration is an integral component of Goodman's business strategy, aligning long-term performances of the Group with pay outcomes for our people. There are several principles which underly our remuneration structure. We focus on cash-based earnings in our main performance metric, which is Operating profit, Operating EPS growth. All employees participate in the Long-term Incentive Plan. This creates a culture of ownership and true alignment with security holders. We emphasize pay for performance with a significant portion of executive pay at risk and the long-term nature of our long-term incentive plans, the longest in the S&P/ASX 100 accords with the life cycle of our development projects. The group has been very successful over many years in attracting and retaining employees at all levels of the organization globally. Approximately 70% of Goodman's earnings are generated outside Australia and approximately 70% of our people are employed outside Australia. As Goodman scales up the data center platform and makes strategic hires globally, the appeal of the Group's long-term incentive program has been -- has proven successful, not only in retaining our people, but in attracting new talent with specialized data center expertise. Goodman's focus on building highly capable teams and incentivizing outstanding performance has enabled us to generate strong returns for security holders over the long term. This is demonstrated by the group significantly outperforming peer groups over 3-, 5- and 10-year horizons. As the business has evolved, so too as the Board. We have created a contemporary international Board whose members bring a wealth of diversity in the form of skills, geography, age and gender with all key competencies and focus areas represented. Of our 9 non-executive directors, 4 are female and 5 are offshore residents. Of our full Board, which includes the 3 executive directors, 33% are female and 50% are located offshore. Standing for re-election today, we have 3 non-executive directors, Chris Green, Vanessa Liu and Hilary Spann and Executive Director, Anthony Rozic. They will address the meeting during the formal business section. Their experience and qualifications are set out in the Notice of Meeting. In closing, it's very good to be able to say that Goodman is well positioned as a provider of essential infrastructure globally. The group's global expertise, track record over 30 years as a listed entity and strong capital position provide a sound basis for sustainable growth in the future. On behalf of the Board, I sincerely thank our people for their commitment and determination in achieving excellent results in the '25 financial year. I also extend my gratitude to you, our Securityholders, for your ongoing support of Goodman. Before I hand over to Group CEO, Greg Goodman, we will show you a short video to highlight Goodman's strategy as providers of essential infrastructure for the digital economy. Thank you very much. [Presentation]

Good morning, and welcome. Goodman is delivering world-class infrastructure on a global scale. While our assets serve distinct industrial and data center customer groups, they have common requirements. Both seek similar locations with access to power and people and properties that help to optimize their operations. We provide this in the world's major cities across 15 countries. Our sites are in metropolitan areas, in close proximity to the consumers. For our logistics customers, it's important that they're close to transport infrastructure, while for our data center customers, it's about access to large-scale power. Industrial development is still driven by the continued rise of e-commerce. It's grown strongly over the last 10 years and is forecast to continue. Goodman is delivering infrastructure to support this evolution. To facilitate growth in productivity and efficiency, logistics facilities are increasingly integrated advanced technologies like artificial intelligence and importantly, robotics, which all require larger, more sophisticated pieces of infrastructure, a trend we're seeing play out with all our large customers. Many of the tools we use today rely on data. From the autonomous vehicles you see driving around cities like L.A. to the software running our warehouses. They're all creating an ecosystem of technology that needs data processing and storage. The data generated by 2027, will double what was created in the last 10 years, illustrating the extraordinary pace of this digital expansion. These services run on cloud computing, which is growing rapidly. As a result, customers are increasing their CapEx in technology and infrastructure. The cloud demand is converging with the explosion of the generative AI and accelerating global demand for data centers. Now this is all positive for Goodman, which is a large power bank on sites it already owns in 13 major cities around the world. 3.4 gigawatts of this is already secured, which makes it globally very significant. But what makes this infrastructure valuable is their location. Our sites are predominantly located in supply-constrained metropolitan markets such as Paris, Frankfurt, Amsterdam, Tokyo, Hong Kong, L.A. and Sydney. Given their proximity to consumers, power and fiber connectivity, they provide low latency to serve cloud-based customers. We also differentiate ourselves based on our financial strength. Global expertise in complex project delivery and the quality and value we provide. Goodman has the right sites, power, people and importantly, capital to build the infrastructure that speeds up time to market for our customers. As we do with industrial, we continue to roll out our regional capital partnering program alongside the development workbook. This is where Goodman co-invests with institutional investors. We're currently progressing partnerships specifically for data centers in Europe and in Australia. Our development work book is increasing from $12.7 billion (sic) [$12.4 billion] to greater than $17.5 billion by June 2026. This is largely due to the significant data center projects we're building in key markets around the world. The group is also progressing a number of acquisitions of multipurpose sites. Recent acquisition in Silicon Valley is a good example where we have data centers sitting alongside warehouse facilities. Sustainability remains a core value, and we work with our customers to support their ambitions and ours. Through the Goodman Foundation and staff contributions, we're working to improve social outcomes with almost $17 million contributed to support communities through FY '25. Goodman has positioned itself for the long term. We have sustainable capital structures that will help us realize our potential. We're focused on quality locations and importantly, executions. We see strong opportunities in both logistics and data centers to generate long-term value for you, our Securityholders and our capital partners. The Group's global opportunities and strong capital position should support future growth, which is targeted to deliver operating EPS growth of 9% for financial year '26. I would like to thank the Board, the Goodman team, some of them here today, our Securityholders as well as our customers and all our stakeholders for your continued support. Thank you very much and hand back to Stephen.

Well, thank you, Greg. We'll now commence the formal proceedings of the meeting. I intend to answer the questions from those attending in person first, then answer questions from online. I'm assisted by one of our senior executives, Alison Brink, who's at the back here in moderating and asking the questions that are submitted online. Item -- the first item is the annual report of Goodman Group. This is business in consideration of the Annual Report and the accounts of Goodman Limited, Goodman Industrial Trust and Goodman Logistics Hong Kong Limited. I table a copy of the annual report before the meeting. We have numerous copies here in case anyone is interested. But thank you very much. So from our auditors, we have Nigel Virgo, Sam Gross from KPMG, and they're available to answer any questions specifically relating to the audit. This is an opportunity to ask questions about the group's operations under the first item of business. You will have an opportunity to ask specific questions in relation to each resolution when those resolutions are formally put to the meeting later on. I'll now respond to any questions in relation to the annual report and the group's business generally. First questions from the floor, please.

Mr. Chairman, I have Brian Allison from New South Wales.

Hello. Mr. Allison.

Just in the presentations and the annual report, you talk about partnerships that you have in data centers. I'd just like a bit more information on the nature of the partnerships. Is it landlord and our part of the partnership? Or are we further involved with the running of the data centers?

Well, thank you very much. We have partnerships which fund most of Goodman's operations. They're not just for data centers. They're also for the industrial developments and properties that we own around the world. This has been a feature of Goodman's financing for many years. We typically Goodman has something like a 20% or 25% to 30% cornerstone investment in those partnerships. So we're the major shareholder, if you like. And our other -- and the rest of the partnership is made up of very, very substantial pension funds and investment institutions from around the world. So for our $85.9 billion worth of properties, the great majority of those are actually owned in partnerships, where typically, as I said, we own about 25%. We manage the partnerships However, the partners in those entities, they make decisions in conjunction with us about investment, about development, but they do typically act on the basis of the recommendations that we provide. So we are the active partner or party in the partnerships, but they provide very valuable equity contributions to the group. The partnerships have their own balance sheets. You might be aware from the annual report that they have about leverage of around averaging 20% across all these partnerships, but the majority of it is in equity. And we have, as I mentioned in my address at the moment, about $9 billion of available funding in those partnerships for future developments and future acquisitions. This is not just for data centers, it's very much for the industrial properties that we've owned for many years.

Well, those balance sheets keep someone very busy. The other question I have is about distributions. They've been static for many years now. And I just wanted to get a little bit of information on the attitude of the Board towards distributions. And secondly is franking credits. Do we have franking credits that haven't been distributed because franking credits have no value to the company, but they do to the shareholders.

Well, thank you very much. The distributions which we've made over recent years have been from our property trust, Goodman Industrial Trust and also the Hong Kong entity, which is also a trust. And so there are no franking credits to distribute from those. We have Goodman Limited, which is the third entity in our stable group, which does have some franking credits. They're not material at this stage. But if they were to become material, we would then distribute those as part of our annual distribution to securityholders. The distribution has been kept at $0.30 per security now for a number of years. You correctly point out, there hasn't been any increase in that. But what's important, the distribution policy is part of our overall financing property. We intend to maintain a very low leverage. At the moment, we've only got 4.3% leverage. Typically, over the recent years, we've been around about 10%, which is very, very low for a property group. We intend to keep it that way. And so the amount of retained earnings that we have funds the investments we make in our partnerships. To put that in some perspective, we have about $600 million or $700 million worth of distributions, and we had an operating profit of $2.3 billion in FY '25. That remaining $1.7 billion was reinvested in the partnerships. So as I mentioned before, we have, on average, about a 25% investment in those partnerships. So that has actually been funding our future investment and our ongoing investment in the partnership. So it's a very important part of our capital management. We will look at our investment profile going forward. But as we're looking at the investments and the opportunities in -- particularly in data centers and the fact that by 30th of June next year, we expect to have more than $17.5 billion of projects underway. Obviously, that's a big financing exercise. And so for FY '26, we expect to keep the distribution of $0.30. There's a question down the front here.

Mr. Chairman, I have [Bronwyn Underwood] from New South Wales.

Thank you for your presentation. I'm a little bit not concerned, but I noticed that nothing was mentioned about where the sites of your data centers are with the requirement of a lot of water. How are we going to deal with that in all of these locations that you pointed out are predominantly in cities or close to cities. And if you could give further information about that, I'd like to, please.

Yes, certainly. You're quite correct. Our data centers are -- we're concentrating on metropolitan sites. The big projects we have underway, which are in Tokyo at the moment and also have started in our Artarmon in Sydney, and we're about to start 4 projects in Europe. There are 2 in Paris, one in Amsterdam and one in Frankfurt. So we've got 4 projects underway about to start there. So they're all the metropolitan areas. And clearly, they require power and they require water. The design of the centers provides for that. That's a certain part where we're using best practices and most advanced engineering practices in order to achieve what we need to in those data centers. So there is water availability and there's power availability in the projects that we're undertaking.

Mr. Chairman, I have Lewis Gomes from the Australian Shareholders' Association.

Good morning, Louis. Welcome.

Thanks, Stephen. I'm here on behalf of the Australian Shareholders' Association. My name is Lewis Gomes. We have 102 proxies from ASA members totaling about just under 0.5 million securities that I'll be voting later today. Firstly, thanks again, Chairman, for spending time with myself and some of my colleagues at our pre-AGM meetings. We always find them very insightful, and we appreciate your openness. And you don't avoid the hard questions, which is what we like. It's a very constructive relationship, and we hope it continues. I think it's just worth acknowledging the fantastic success of the Goodman Group over 30 years. And in your annual report, you noted that when Goodman Group, which I think was in Macquarie Goodman, it may have been -- when it first listed, it had assets worth about $75 billion -- $75 million, and we're now up around $86 billion, $87 billion. I got to get my Ms and the Bs correct. That's fantastic growth. And you compound that over each year, and it's something like 25%, 26% annual compound growth rate, which is phenomenal. Some of us were here, I'm sure, were shareholders back in the Macquarie Goodman days. And during the GFC, of course, we went rapidly down the lift into the basement, but we've come back up the elevator for what, nearly 20 years now, going on 20 years, and it's been a fantastic journey. So congratulations to Greg and his team. It's remarkable. There aren't too many stories like that on the ASX. So well done. The question really comes to capital management. Obviously, a big issue looking forward into the data centers in particular. Work in progress back only in FY '19, FY '20 was around $4 billion. It then grew over 2 or 3 years to around $12 billion, $13 billion, and it stabilized at that for a few years. And as we heard, it was, I think, $12.4 billion at the start of this financial year, and it's looking to be $17.5 by the end of this financial. So that's a $5 billion increase in work in progress over 12 months. Now you had a very successful capital raising of around $4 billion early this year that we know about. But if you look at the 10 projects that we've got underway at the moment, I think the outturn value of those is estimated around $13 billion, thereabouts, probably a mix of operating data centers, but probably more like powered shells, I guess, is probably what most of them are. But that's for 500 megawatts of power and you're looking at 5 gigawatts, which is a factor of 10 over where we are today. So you -- the question becomes the end value of that 5 gigawatts, who knows what the end value is? I've seen reports of somewhere between $100 billion and $130 billion in today's dollars. Goodman Group will look to own probably about 25% of that. So let's say, $30 billion to $35 billion of investment from Goodman, which presumably would be a mix of capital and debt. You've got $4 billion of debt at the moment and you're down at 4%. So you could borrow to get up to 10%, you could borrow another $5 billion or $6 billion. But the funding need that will be required to get to 5 gigawatts is going to be almost order of magnitude greater than where we are today. And I just wonder, Goodman has got fantastic growth and a lot of confidence in the Board and in the management to get to that sort of level and define the funding and define the people to do it all. But you've got a lot of competition now in the data center space, a lot of big operators with a lot of experience. You've also got a lot of [ Johnny ] list who have got almost no experience, but I think they've got lots of capital, maybe they do, maybe they don't. But I just wonder if this 5 gigawatts is a realistic ambition and is Goodman in the position to be able to capitalize it. And it will be over many years, of course, it's not an overnight thing. So you've got to have people, capital and opportunities and clients, customers to get to that level. So I'm just wondering how confident are you and you're going to say you're very confident, but if you could just elaborate on how you think you're going to get to that 5 gigawatts.

Very confident. Thank you. First of all, Lewis and your colleagues, and I think all my colleagues appreciate the relationship we have with the Australian Shareholders' Association. It's very professional. We share what we can with you and you share your thoughts and comments with us, and that's a very healthy and productive way of going about things. Also, I was smiling up here a little bit when you're describing the history of Goodman and the current operations because you seem to know more than probably I do about the company and the homework you've done is obviously pretty impressive actually. And when you start to describe the financing challenges that we might have and the exercise that we have before us, Nick Vrondas, our Finance Director, is shifting his seat there because he knows exactly how much work he's got to do over the next 5 or 10 years. But seriously, it goes back to a bit of the earlier question about partnerships and distribution and the capital management of the group. We are currently looking to create the partnership in Sydney for the Artarmon center. That's well and truly underway, and we're confident that we'll be able to bring new partners into that entity. And we're looking to -- and we have just launched a partnership for Europe for the 4 centers in Europe, and that is going well, and we would hope that during the course of this financial year, we'll be able to make positive announcements that, that has been successfully implemented. So yes, the partnerships themselves will have some leverage in them, not a huge amount. Yes, the [ Westfield ] Group here, Goodman Group, it's actually -- we're down to 3% at the moment. We're 4.3% leverage at gearing at 30th of June. So we're now at 3%. We expect to go up to 10% or 12% leverage. We've got a financing policy of 0% to 25% leverage, but we're aiming for the midpoint of that. So we will be going back to around about the 10% level that we were in previous years, so using the capital raising funds that we obtained earlier this year in February. So yes, it's a the big excitement, very comfortable and confident that we will do that. I can say that as the Chairman as a Director, management have got to do it, but we're talking also over a period of probably up to 10 years. So there is -- for the right projects, we are confident and management is confident that the equity is there from the major pension funds and institutional investors around the world and in Australia and that we will get the appropriate support. So we will have cornerstone investments. That's the plan in all of those partnerships. We'll bring the biggest and best institutional investors with us. And we have to prove to them that the projects stack up, that they are viable, that we have the right tenants for them. Most of the projects, these are the ones we're currently talking about will not be powered shells. We're proposing to have fully fitted out projects that will make it -- make them more expensive, more capital intensive. That's the in Europe and also what we're doing here in Artarmon. And so yes, it is a big exercise, but that's the challenge, but it's also the great opportunity for us in the long term. And I think you've heard the word the term -- long term now from myself and from Greg quite a few times this morning, and that is what we're looking at, and we will be financing ourselves with the best projects where we can find in the best metropolitan centers around the world, and that will have, hopefully, the best tenants as well. We are focusing on hyperscalers, the AWSs, the Microsofts, the Googles of this world. And hopefully, those will be the people who will also be underwriting the rental streams from those properties. Are there any more questions from the floor? Yes, in the front row here.

Mr. Chairman, I have Jonathan Harrison from New South Wales.

My question goes to the AI-based demand. There's quite a lot of commentary circulating in the markets now that the seemingly limitless projections for AI computing demand may be overblown to the extent of a substantial market correction. And I wonder whether you could -- the Board could share with us its views on this possibility, particularly in the light of the fact that you just suggested that some of these new data centers or if not many of them will be fully fitted out. As I aim and I assume that means the risk of the demand not eventuating means that the company could find itself with occupancy levels of these data centers way below the 96% that prevails across the whole portfolio at the moment.

Well, thank you for the question. I think it's important to focus on what data centers Goodman plan to develop. Most of the data centers will be in metropolitan areas, not the AI training centers, which require far more power and can be in other areas. So we're looking at metropolitan areas where the land is properties are constrained and where we have the properties in the right locations. We plan to focus on the hyperscalers, as I mentioned a moment ago, the Microsoft and Google and AWS of this world, and they will be paying rent. So it's not that we will be operating centers in that regard. That's not the full plan. There are -- there's possibilities that we may operate some centers, but the focus at the moment is on dealing with hyperscalers so that we will have lease deals, long-term lease deals with them and for their usage. Now cloud computing in the metropolitan areas is not just AI, it's requirements, but it's also online retailing. There's a great demand. And we see that in the major cities that in which we are operating and on which we focus. So we're very confident that if we initiate the projects in the right locations with the right tenants, they'll be very successful. Greg, would you like to...

Yes. I think a really good question. I think there is a lot of conversation about AI and where it might be. And is it overblind? I think there's exaggeration, particularly when you're reading in the media without doubt. I think the reality is the infrastructure, the ability to get the ambition to fill and built is a lot harder than writing it in print. So I think you'll find over time, there will be a consistency, a leveling out of probably excitement to the point though where if you've got the infrastructure, you've got the people and the capital to deliver, you'll be in -- you put yourself in a very good position. I think as the Chairman pointed out, we're very focused on cloud metropolitan areas, which we think are the best, most sustainable investments for our long-term investors. That's where we will be doing business with big customers and the world's biggest companies. And those deals have been done and those deals are being done at the moment. So I think question is a really good one. Is it overdone? I think over time, AI is next 10 years changing the world, but let's not believe all the exaggeration, which you do read from time to time because it's harder to get done than it is to write it and print.

Thank you, Greg. Are there any more questions here on the floor? If not, Alison, we'll go online. Are there questions online?

Yes, Mr. Chairman. Firstly, I've got a question from Andrew Walton. What is your differentiation to win data center build contracts and partnerships in the U.S.A.?

I think we've got properties in the right location. We've got very good people and we understand the business. Greg, do you want to make...

Look, another good question. It's about having the capital and the infrastructure and a lot of that infrastructure is actually people that know what they're doing. Once again, it's easy to talk about it to the question we were chatting about before. The other is actually delivering it. And in many instances, the average cost of these projects is USD 1 billion effectively in the world we live in. So yes, it's -- we're well positioned -- we're well positioned globally, in fact, and the sites we've talked about in the 3.4 gigawatts are sites we already own. So that part of it capital stack is taken care of. And effectively, that is a massive advantage having the capital and the ability to fund through without pre-commitments and things like that, all without a lot of banking and debt finance. And I said that we had a quarterly last week, and I made some comments about that the amount of leverage going in the sector all around the world is, in my view, extreme. I don't think it's sustainable and I don't think it will be sustainable. So I think big corporations that have big balance sheets, have long-term aspirations in a world where you get the exaggerations and things like that, you drive through it, you'll do very, very well over the next 10 years in the sector. Because I think the demand is there. It's strong. There's no turning the dial back on the digital revolution that's going on around the world. The speed of it, we might be able to debate and argue with, but it's happening and it's happening every day and it's happening consistently. Pretty well every product Goodman Group is now buying, particularly from Microsoft, I suspect, is laced with AI products and innovations and digital expense. But yes, it's alive, it's creating productivity efficiencies as we speak, and that will continue.

Thank you, Greg. Allison, more questions online?

Yes, Mr. Chairman, I've got a question from Stephen Mayne. Why didn't we do a best practice [Pri ] capital raising in February, which treated all shareholders equally? It was disappointing that the SPP didn't have a secondary VWAP-based pricing like other companies have done in the past. The fees paid to the investment bank seemed excessive. Did we run a proper competitive tender to keep the fees down? And wouldn't it have been better to do a floating price placement rather than the $4 billion fixed price offer at $33.50.

Well, Stephen, thank you very much for the question, and welcome to the meeting online. It's a very broad question. We had a very successful capital raising. I think we did it exceptionally well with little free publicity. We've got a very good price for the company. It was a very fair price at the time. As you pointed out, we did have the SPP, which was designed for retail shareholders. We were not aware that April is going to come around with tariffs and we're going to have Liberation Day, which actually affected all the share market. And that the price of all securities of certain equipment securities then reduced and went -- declined and went below the actual issue price. And so it was actually a benefit for the retail shareholders not to have participated as it turned out. But it was very successful capital raising. We went through all the processes. And as a Board, we are delighted with the result. Alison, any more questions?

Yes, Mr. Chairman, I've got a question from Mr. Adam [indiscernible]. The company's total gas consumption grew 35% in the last financial year, and Goodman's Australian properties consume the highest amount of gas from the global portfolio, mainly from heating, ventilation and cooling. While noting that gas isn't a huge part of the company's energy mix, gas is a fuel characterized as volatile and uncertain. Share price increases are highly possible as the East Coast gas market in Australia is predicted to face a shortfall in supply by 2026 in states where Goodman has numerous properties, exposing the company to gas price increases. The company is also moving quickly to house data centers, which require huge amounts of energy, including gas peaking plants in Australia. The 2 questions are, can the Board confirm if it has a plan to transition off gas by a specific date? And have you modeled out the cost of BAU use of gas in your capital expenditure scenarios?

Well, thank you for the question. Before maybe handing over to Greg to answer in a bit more detail. Obviously, power consumption is a big thing for everybody in the economy in Australia and globally. We have a requirement for power for our industrial and logistics properties as well as for our data centers. And we would take power from the grid. We have power commitments with the suppliers and who generate the power and so that we don't specifically have any particular arrangements with gas or other forms of power. But Greg, do you want to maybe just refer to our [match].

Yes, a really good topic because I think everywhere we're in the world, grids are getting, particularly with the data center growth, getting under pressure and there's new infrastructure being built pretty well in all the markets we are around the world. And for example, in Paris, 70% of the energy that will come from the data centers we're building in Paris is nuclear. Then there's gas in certain markets, there's coal in other markets, and then there's solar and renewables in other markets as well. I think the point I think you made is a good one. The Chairman, I think, answered it primarily around the customers are paying for the energy. Our customers who are big customers, big industrial customers or big customers around data centers, are very aware. They do a lot of diligence on the grid before they commit to a piece of real estate to make sure that they feel comfortable they can get consistent pricing. They have big contracts with the energy providers. But I think it's a big question for the world around energy. It's the biggest topic pretty much globally. I don't think it's necessarily solved either. And the amount of pressure that's going on the grid over the next 5 to 10 years around the evolution of technology is large. Hopefully, there will be technologies and chips and other things that evolve that will use less energy and create more power. That's, I think, what the Microsoft and NVIDIA and others are working on around the world. Some of the biggest capital in the world is putting their minds to how do we get more out of -- how do we get more out of less. But it is an issue, but it's an issue globally and grids are under pressure. Everywhere we go now, it's becoming 1 million a megawatt to create new infrastructure, which means 300 megawatts is going to cost you $300 million. That is new infrastructure going in to make it possible to keep driving the evolution, revolution we're seeing in regards to technology. So a big issue, good question.

Thank you. Alison, any more questions online?

No more questions.

No more questions. Okay. Thank you. Well, we'll now continue the meeting. Item B. I'll now return to the -- turn to the formal resolutions set out in the Notice of Meeting. My fellow directors and I support resolutions 1 to 9. Please note that where open proxies are held by me as Chairman, I intend to vote these proxies in favor of each of those resolutions 1 to 9. All of the resolutions are proposed as ordinary resolutions and will be approved if passed by more than 50% of the votes cast. For transparency in the benefit of the meeting, I'll now present the results of the proxy votes on resolutions 1 to 9. You can see them here on the screen. As can be seen with the proxy votes received, which account for about 78% of our share register, I expect that resolutions 1 to 9 will be passed on the casting of the proxy votes. And I also expect that there will be no strike on the remuneration report, in which case we will not be required to put Resolution 10 to the meeting. As mentioned at the commencement of the meeting for Securityholders participating online, polling has opened and will close at the end of the meeting. For those of you who are with us here in the room today, we will vote on resolutions 1 to 9 after they have been put to the meeting. In accordance with the Corporations Act and determinations made under the constitutions, each of today's resolutions will be decided by way of poll. The first resolution for members to consider as an ordinary resolution of Goodman Logistics Hong Kong Limited is to appoint KPMG as auditors of Goodman Logistics Hong Kong to hold office until the next AGM and the directors be authorized to fix the auditor's remuneration. As explained in the Notice of Meeting, as a result of the technical stretch of holding Hong Kong securities on the ASX, securityholders cannot vote personally at the meeting in respect of Logistics Hong Kong, these resolutions in respect of the auditor. Rather, CHESS Depositary nominees will vote these interest in accordance with the voting and proxy form directions that they have received prior to 10:00 a.m. on the 9th of November 2025. This applies only to Resolution 1. I now move that Resolution 1 be approved. Are there any questions on the floor? If not, are there any resolution -- are there any questions online?

[indiscernible] Mr. Chairman.

Thank you. So I'll now move to the next resolution. The second resolution for members to consider as an ordinary resolution of Goodman Limited is that Chris Green, a director retiring by rotation in accordance with the constitution and the listing rules, be reelected as a Director. I now invite Chris to say a few words in support of his reelection.

Thank you, Chairman, and good morning, ladies and gentlemen. My name is Chris Green, and I am seeking your support for reelection to the Goodman Group Board, having served as a Director since April 2019. Goodman Group is a very special company, a true global provider of essential infrastructure. Goodman has long been renowned for its ability to anticipate customer demand and adapt its business to seize emerging opportunities. Over the years, this has been demonstrated through the strategic repositioning of its portfolio toward key global markets close to large urban populations. This strategy has meet not only the needs of e-commerce and logistics customers who require rapid transit times, but also the growing demand for data centers, facilities that need vast amounts of power for cloud computing and AI, and that can only exist in the kinds of locations Goodman owns. If I may share a little of my background. I'm the Founder and CEO of GreenPoint, a global real asset investment firm established in New York in 2019 with USD 1.1 billion in equity under management. GreenPoint invests at the convergence of real asset and technology with 2 platforms supporting the evolution of transport including electrification, autonomous vehicles and drones. Prior to founding GreenPoint, I spent 16 years with Macquarie Group, where I served as Global Head of Real Estate. During that time, I led the firm's investment in and growth of real estate operating companies, including several logistics businesses across Asia Pacific, the U.K. and the U.S. During my 6 years as a director, I have sought to bring my skills and expertise to the group and its management team, particularly around technology, infrastructure and evolving real estate business models. I currently serve as a member of the Remuneration and Nomination Committee and previously as Chair of the Sustainability and Innovation Committee. Under the strategy led by Greg Goodman and his team, I believe the group is exceptionally well positioned to play a significant role in the digital future in a sustainable and responsible way. My experience across institutional capital, technology, real asset investing and sustainability, particularly in North America, brings perspectives that I hope continue to be valuable to the Board and the group's ongoing success. Goodman Group is my only public company directorship. As noted in the annual report, 2 investments have been made by Goodman in partnership with GreenPoint. There have been no new commitments during my current 3-year Board term, and Goodman's investments represent a very small proportion of the overall GreenPoint business. I recognize the trust -- that securityholders place in directors to uphold the highest standards of conduct and diligence. I'm committed to doing so on your behalf. With your endorsement today, I hope to continue to provide advice, perspective and stewardship to the Board and senior leadership of Goodman Group as we navigate the future together. Thank you.

Thank you very much, Chris. I'll now move that Resolution 2 be approved. Are there any questions? Any questions on the floor? Lewis?