HomeCo delivers on FY23 guidance

17 August 2023

HomeCo (ASX: HDN) released Funds From Operations results of $177.1 million, with distributions of 8.3 cents per unit, in line with guidance.

The group’s portfolio is valued at almost $4.7 billion, with financial results offset by major tenants across the retail space. The occupancy rate across the portfolio is at cica 99%, with a WALE of 4.8 years.

HDN has identified a development pipeline of $600 million as part of their growth strategy, with $120 million of developments to commence and 22 projects in planning stages.

Sid Sharma, CEO of HDN, said: “HDN successfully absorbed a material increase in interest costs and statutory charges in FY23 with these headwinds offset by strong underlying rental growth and development completions. This strong result reflects our strategically located assets which have limited exposure to cyclical and discretionary retail expenditure.”

Will McMicking, HDN Capital Group CFO, said: “HDN has a robust balance sheet at Jun-23 with net assets of $3.1 billion and gearing of 33.8%. This robust balance sheet combined with resilient portfolio valuations provides a strong platform to continue to undertake asset recycling and organic growth.

“Furthermore, interest rate hedging has increased to 91.5% at Jun-23 and remain elevated which provides strong interest rate protection in FY24 and FY25.”

HDN forecasted guidance of 8.6 cents per unit for FY24.