The HomeCo Daily Needs REIT (ASX: HDN) share price is in focus today after the company posted half-year FFO per unit growth and reaffirmed its FY26 guidance, powered by positive property revaluations and strong portfolio performance.
What did HomeCo Daily Needs REIT report?
- First-half FY26 FFO per unit of 4.4 cents, up from 4.3 cents a year ago
- First-half FY26 distribution per unit (DPU) steady at 4.3 cents
- Net asset value (NTA) per unit of $1.55, up 5.4% since June 2025
- Dec-25 proforma gearing at 34.6%, within management’s 30â40% target
- Asset revaluations delivered a $219 million gross uplift (+4.5%) on June 2025 values
- FY26 guidance reaffirmed: FFO of 9.0 cents per unit and DPU of 8.6 cents per unit
What else do investors need to know?
HomeCo Daily Needs REIT maintained occupancy and cash rent collections above 99% since its IPO, demonstrating ongoing tenant demand and stable cashflow. The REIT also reported $87 million of asset disposals during the half, locking in a 1.6% premium to book value and providing flexibility for future acquisitions and developments.
The company has a development pipeline exceeding $650 million, targeting a return on invested capital of around 7%. Active projects worth $100 million are currently underway, aiming to drive earnings and future growth. Management highlighted disciplined asset recycling, focusing on high-quality centres and tenant-led opportunities.
What did HomeCo Daily Needs REIT management say?
Managing Director and CEO Sid Sharma said:
HDN has delivered another strong half, with robust top-line revenue growth driving an increase in FFO per unit and continued NTA growth. Operational excellence remains the cornerstone of our performance, with occupancy and cash collections above 99%, consistently positive leasing spreads and comparable NOI growth of 4%.
What’s next for HomeCo Daily Needs REIT?
Looking ahead, HomeCo Daily Needs REIT remains focused on delivering sustainable income growth for investors, leveraging its well-capitalised balance sheet and active development pipeline. The trust intends to continue strategic asset recycling and reinvesting in neighbourhood centres that support future valuation upside and improved earnings quality.
Management reaffirmed full-year FY26 guidance for FFO and distributions, underpinned by stable rental income and disciplined capital deployment. The portfolio’s exposure to leading national tenants and high-growth metropolitan areas supports HomeCo Daily Needs REIT’s strategy for resilient, long-term growth.
HomeCo Daily Needs REIT share price snapshot
Over the past 12 months, HomeCo Daily Needs REIT shares have risen 8%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.
The post HomeCo Daily Needs REIT posts 1H FY26 FFO growth and reaffirms guidance 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.