Highlights

• HomeCo Daily Needs REIT delivered higher FY26 revenue and profit, supported by stronger property income and a larger fair-value uplift across its investment portfolio.
• Funds from operations improved to AU$187.1 million, while FFO per unit and annual distributions both increased from FY25 levels.
• The property portfolio reached more than AU$5 billion in value, while refinancing expanded available debt capacity and strengthened liquidity.

FY26 Results Show Stronger Earnings

HomeCo Daily Needs REIT (ASX: HDN) released its FY26 financial results on 12 August 2026 for the 12-month period ended 30 June 2026. The Australian property trust reported growth in revenue, underlying earnings and statutory profit, alongside a higher portfolio valuation and improved net tangible assets.

Revenue from ordinary activities increased 4% to AU$379.4 million, compared to AU$365.7 million in FY25. Profit for the year climbed 44% to AU$361.6 million, from AU$250.3 million previously. The increase was largely influenced by a AU$188.8 million net fair-value gain, compared to AU$85.0 million in the prior year.

Underlying Earnings Continue to Improve

Funds from operations rose to AU$187.1 million from AU$182.5 million, while FFO per unit increased to 9.0 cents from 8.8 cents. Higher property income after expenses supported the result, although increased financing costs partly offset the improvement.

Full-year distributions reached 8.6 cents per unit, compared to 8.5 cents in FY25. The final quarterly distribution of 2.15 cents per unit was scheduled for payment on 21 August 2026.

Portfolio Valuation Moves Higher

HDN finished FY26 with 46 daily-needs properties across Australia, carrying a combined value of AU$5,092.5 million, up from AU$4,830.2 million a year earlier. The portfolio’s average capitalisation rate improved to 5.5%, compared to 5.6% in the previous year.

Net tangible assets increased to AU$1.56 per unit from AU$1.47, while total net assets rose to AU$3,260.5 million.

Refinancing Expands Financial Capacity

During FY26, HDN transitioned its secured borrowings to an unsecured debt structure and increased total facility limits by AU$300 million to AU$2.15 billion. Available liquidity stood at AU$288 million, while gearing was 35.7% at year-end.

Outlook

Looking ahead, HomeCo Daily Needs REIT enters FY27 with a AU$5.09 billion property portfolio, AU$288 million of available liquidity and gearing of 35.7%. Its exposure to convenience-based daily-needs assets should continue to support recurring rental income, while portfolio valuations, leasing conditions and interest rates remain important variables. The shift to unsecured funding and expanded debt facilities provide additional financial flexibility; however, disciplined capital allocation will remain important as borrowing costs stay elevated. Continued growth in property income and careful balance-sheet management will be central to sustaining FFO and distributions over the coming period.

Note- All data presented is based on information available at the time of writing.

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