HomeCo Daily Needs (HDN) investor relations material

Executive summary

• Delivered consistent earnings and FFO per unit growth in 1H FY26, rising to 4.4 cents from 4.3 cents year-over-year, supported by operational excellence and strong asset revaluations.

• Maintained occupancy and cash rent collections above 99%, with a highly defensive and diversified portfolio focused on daily needs retail assets.

• Portfolio strategically weighted towards high-growth metropolitan areas, with significant exposure to Sydney, Melbourne, and Brisbane/Gold Coast.

• No single tenant contributed more than 10% of revenue, with a diversified tenant base and strong national retailer presence.

• 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.

Financial highlights

• 1H FY26 FFO per unit was 4.4 cents, up 2.5% year-over-year; DPU was 4.3 cents, up 1.2%; total FFO reached $92.4 million.

• NTA per unit increased to $1.55, up 5.1% since June 2025, reflecting strong asset revaluations.

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

• Pro forma gearing at 34.6%, within the 20-40% target range; weighted average cost of debt at 4.8% p.a., with 70.5% of debt hedged.

• Over 99% occupancy and rent collection maintained.

Outlook and guidance

• FY26 FFO per unit guidance reaffirmed at 9.0 cents; DPU at 8.6 cents, with payout ratio targeted to move from 96% to 90% over 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.

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

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