HomeCo Daily Needs REIT (ASX:HDN) Announces 1H FY25 Results
Financial Performance
HomeCo Daily Needs REIT reported a FFO per unit of 4.3 cents for 1H FY25, a 1.3% increase compared to 1H FY24. The DPU rose by 2.5% to 4.3 cents. The net tangible asset per unit reached $1.45, supported by robust asset revaluations. Gearing stood at 34.6%, within the target range of 30-40%. Occupancy remained above 99%, in line with FY24 figures. Rent collection also exceeded 99%, with contracted rent increasing by 4.0%. Net operating income grew by 6.1%. The portfolio secured 129 new leases and renewals, maintaining low incentives of approximately 5%.
Portfolio Update
HomeCo maintains a diversified portfolio valued at $4.8 billion, spanning multiple subsectors, tenants, and geographies. The landbank covers 2.4 million sqm, with an occupancy rate exceeding 99%. The model portfolio targets stable and growing property income with minimal correlation to traditional sectors. The portfolio includes high-quality assets across major Australian markets.
Outlook & Guidance
HomeCo Daily Needs REIT reaffirms its FY25 guidance with FFO projected at 8.8 cents per unit and DPU at 8.5 cents, representing growth of 2.3% and 2.4% respectively over FY24. The development pipeline is set to commence projects valued at $100-$120 million, targeting a 7% ROIC. The company remains focused on asset recycling and organic growth through its development strategy.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended HomeCo Daily Needs REIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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