HomeCo Daily Needs REIT posts $219m gain and refinances $810m debt

The HomeCo Daily Needs REIT (ASX: HDN) share price is in focus today, after the company posted a $219 million preliminary unaudited valuation gain for the half-year ended 31 December 2025, representing a 4.5% lift in portfolio value, and completed an $810 million debt refinancing.

What did HomeCo Daily Needs REIT report?

• Preliminary unaudited valuation gain of $219 million, up 4.5% on June 2025 portfolio value
• Gearing remains within target range at the midpoint of 30–40%
• Refinanced $810 million of debt, now maturing July 2028, with a 42.5 basis point margin improvement
• Distribution of 2.15 cents per unit for the December quarter declared
• FY26 distribution guidance reaffirmed at 8.6 cents per unit; FFO guidance at 9.0 cents per unit

What else do investors need to know?

The valuation increase was driven by strong net operating income growth, solid tenant demand, and a slight tightening of capitalisation rates to 5.51%. This is the fourth straight period HomeCo Daily Needs REIT has posted positive net revaluation gains, bolstered by ongoing tenant-led developments.

Approximately 70% of HomeCo Daily Needs REIT’s debt is hedged until December 2026, helping manage interest rate risk. The December quarter distribution comes with an active Distribution Reinvestment Plan, allowing unitholders to reinvest with no discount.

What did HomeCo Daily Needs REIT management say?

HomeCo Daily Needs REIT Fund Manager Paul Doherty said:

This is the fourth consecutive period HDN has recorded positive net revaluation gains. The positive valuation gain has been driven by strong net operating income growth, accretive tenant led developments and capitalisation rate tightening.

What’s next for HomeCo Daily Needs REIT?

Looking ahead, HomeCo Daily Needs REIT has reaffirmed its guidance for FY26, expecting distributions of 8.6 cents per unit and FFO of 9.0 cents per unit. The company will continue focusing on high occupancy, tenant-led development opportunities, and maintaining a strong balance sheet.

HomeCo Daily Needs REIT is also a strategic investor in the Last Mile Logistics fund, aiming to further grow its footprint in convenience-based, non-discretionary retail and essential last mile infrastructure.

HomeCo Daily Needs REIT share price snapshot

Over the past 12 months, HomeCo Daily Needs REIT shares have risen 15%, outpacing the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.

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The post HomeCo Daily Needs REIT posts $219m gain and refinances $810m debt appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.