HomeCo Daily Needs REIT (ASX: HDN) today released its results for the full year ended 30 June 2026, achieving FFO per unit and DPU of 9.0 cents and 8.6 cents, respectively. The result highlights the resilience of HDN’s strategically located metropolitan daily needs portfolio, underpinned by strong operating performance and positive valuation momentum. Disciplined asset recycling continues to support balance sheet flexibility and reinforces the strength of HDN’s model and differentiated position in the Australian real estate sector.
Investment and development highlights
- Positive Jun-26 asset revaluations, delivering a +$311m gross increase (+$180m net) on the Jun-25 portfolio value, representing a 6.2% uplift
- $81m of acquisitions completed with 10%+ IRR target, offset by $168m of disposals at an exit cap rate of 5.25% and a 1.6% premium to book value
- Replaced secured debt facility with new senior unsecured debt facility, upsized by $300m and supported by inaugural credit rating of BBB+
- $120m of active FY26 development projects targeting ~7%+ ROIC1
- $650m+ development pipeline identified targeting ~7%+ ROIC
Operational highlights
- 99% occupancy maintained since IPO
- >99% cash rent collections maintained since IPO
- +4.0% comparable property NOI growth
- +5.9% market leading leasing spreads2
Financial highlights
- FY26 FFO per unit of 9.0 cents (FY25: 8.8 cents)
- FY26 DPU of 8.6 cents (FY25: 8.5 cents)
- Jun-26 gearing of 35.7%3, at the midpoint of the 30-40% target range
- Jun-26 interest rate hedging of 68.4%, 75.0% hedged as at Jun-274
- NTA per unit of $1.56 (+6.1% vs. Jun-25)
FY27 Guidance
The property portfolio continues to perform well, with comparable property NOI growth of 4.0% forecast for FY27. However, higher financing costs are expected to reduce FY27 FFO by approximately 2%, with HDN maintaining distribution guidance. HDN expects FY27 FFO per unit of 8.8 cents and DPU of 8.6 cents.
HDN Fund Manager, Paul Doherty said, “HDN’s FY26 result demonstrates the strength and resilience of our daily needs portfolio, underpinned by strong operating performance and disciplined capital allocation. Tenant demand across our strategically located metropolitan portfolio remains strong, reflecting the essential goods and services our tenants provide and supporting consistently high occupancy and cash collections. The sector continues to attract strong demand from private and institutional investors, reinforcing the liquidity and value of high-quality daily needs assets and HDN’s differentiated market position,” said Mr Doherty.
HMC Capital Managing Director, Real Estate & HDN CEO, Sid Sharma said, “HDN expects continued top-line revenue growth, strong operational execution and market-leading leasing outcomes to underpin FY27 FFO per unit guidance of 8.8 cents and DPU guidance of 8.6 cents, while absorbing material interest rate headwinds and positioning HDN for the next cycle of growth. Consistent with this approach, we will continue to assess selective asset sales and capital recycling opportunities to support gearing reduction and balance sheet flexibility,” Mr Sharma said.
For additional information please refer to the FY26 financial results presentation which was also released on the ASX today.
Investor and analyst briefing teleconference call
An investor and analyst briefing teleconference, followed by a Q&A session, will be held on Thursday 13 August 2026 at 10:00am (AEST).
Investors and analysts wishing to participate in the Q&A should pre-register for the teleconference via the following link: https://s1.c-conf.com/diamondpass/10055886-asm33aaa.html
A live webcast of the briefing will also be available at: https://webcast.openbriefing.com/hdn-fyr-2026/
A playback of the FY26 results webcast will be made available on HMC Capital’s website at www.hmccapital.com.au.
This announcement is approved for release by the Board of the Responsible Entity.
1 Return on invested capital (ROIC) represents cash yield on cost once development is fully stabilised. Estimated ROIC is based on assumptions relating to future income, valuation and capex is and calculated on a fully stabilised basis.
2 For new leases and renewals.
3 Pro forma gearing is defined as Borrowings (excluding unamortised debt establishment costs) less cash divided by Total Assets less right of use assets and cash and cash equivalents.
4 Based on Jun-26 drawn debt.
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