HomeCo Daily Needs (HDN) investor relations material

Executive summary

• Delivered strong 1H FY26 FFO growth, with FFO per unit rising to 4.4 cents from 4.3 cents year-over-year, supported by disciplined execution and operational excellence.

• 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 remains focused on high-quality, convenience-based retail assets with strong tenant demand, high occupancy above 99%, and a defensive, diversified mix.

• Achieved fourth consecutive period of positive asset revaluations, highlighting portfolio strength.

• Reaffirmed FY26 guidance for FFO and distributions per unit, reflecting confidence in ongoing performance.

Financial highlights

• 1H FY26 FFO per unit was 4.4 cents (AUD 0.044), up from 4.3 cents (AUD 0.043) in the prior period; total FFO increased to AUD 148.7 million.

• Distributions per unit were 4.3 cents for the half, maintained year-over-year.

• NTA per unit rose to $1.55, up from $1.47 at June 2025, reflecting asset revaluations and favorable derivative movements.

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

• Weighted average cap rate/capitalisation rate was 5.5%–5.51%.

Outlook and guidance

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

• Targeting comparable NOI growth of 4.0% in FY26.

• Planned FY26 investments of $100m–$120m, with active capital recycling to fund organic growth.

• Development pipeline deployment timing under review due to interest rate outlook; prudent capital management remains a priority.

• Interest rate risk mitigated with ~70.5% of debt hedged.