HomeCo Daily Needs (HDN) H2 2026 earnings summary

Executive summary

• FY26 results delivered in line with guidance, with FFO per unit at 9.0 cents (AUD 0.09) and DPU at 8.6 cents (AUD 0.086), reflecting strong operational performance and portfolio resilience.

• Portfolio value increased to AUD 5.2 billion ($5.2bn), with occupancy and rent collection rates above 99%, supported by a diversified tenant base and focus on daily needs retail assets.

• Comparable NOI grew 4% year-over-year, driven by strong leasing spreads and low incentives.

• Strategic focus on defensive, daily needs community hubs and disciplined capital allocation, with asset recycling reinforcing balance sheet flexibility.

Financial highlights

• FFO totaled AUD 187.1 million, up 2% year-over-year; property NOI increased 3.6% to AUD 298.7 million.

• NTA per unit rose 6.1% to AUD 1.56, mainly from income-driven valuation gains.

• Gearing at 35.7%, within the 30%-40% target range.

• Statutory profit increased to AUD 361.6 million, up from AUD 250.3 million in FY25.

• Interest rate hedging at 68.4% as of June 2026, rising to 75% by June 2027.

Outlook and guidance

• FY27 guidance: FFO per unit of 8.8 cents (AUD 0.088) and DPU of 8.6 cents (AUD 0.086), with comparable NOI growth of 4% expected but higher financing costs anticipated to reduce FFO.

• No divestments or acquisitions assumed in FY27 guidance; continued focus on selective asset sales and capital recycling to support gearing reduction.

• Flexible balance sheet and liquid assets position the business to navigate a volatile interest rate environment.