HomeCo Daily Needs (HDN) investor relations material

Executive summary

• Delivered consistent top-line revenue and earnings growth, with FFO per unit up 2.5% and distributions per unit up 1.2% year-over-year, supported by strong asset revaluations and operational excellence.

• Achieved fourth consecutive period of positive net valuation gains, with comparable NOI growth of 4% and occupancy above 99%.

• Portfolio is highly defensive, diversified, and strategically located in high-growth metropolitan areas, with no single tenant exceeding 10% of revenue.

• Profit for the half-year was $243.5 million, up from $116.8 million year-over-year, driven by higher property income and significant net fair value gains.

• Portfolio value rose to $5.1bn, with net assets increasing to $3,229.0 million.

Financial highlights

• FFO for the half was $92.4 million, or 4.4 cents per unit, up 2.5% year-over-year; DPU was 4.3 cents, up 1.2%.

• NOI grew 4.6% year-over-year, with comparable NOI growth of 4.0%.

• NTA per unit increased to $1.55, up from $1.47 at 30 June 2025, reflecting strong asset revaluations.

• Weighted average cap rate at 5.5%; weighted average cost of debt steady at 4.8% per annum.

• Gearing at 34.6%–35.2% post-asset disposals, within target range.

Outlook and guidance

• FY26 FFO per unit guidance reaffirmed at 9.0 cents and DPU at 8.6 cents, with payout ratio targeted to move from 96% to 90% over the next 2–3 years.

• Targeting comparable NOI growth of 4.0% in FY26 and planned investments of $100m–$120m.

• Development pipeline deployment to be moderated in the near term, reflecting interest rate outlook and prudent capital management.

• No significant changes in the state of affairs or material events after the reporting period.