Region Group (RGN) H1 2026 earnings summary

Executive summary

• Delivered strong earnings growth in 1H FY26, supported by robust operational performance and a fully hedged debt position.

• Net profit after tax for the half year was AUD 180 million, up from AUD 81.8 million year-over-year, reflecting fair value gains on investment properties.

• Funds from operations (FFO) rose 3.9% to AUD 0.079 per security, and adjusted FFO (AFFO) increased 3% to AUD 0.069 per security compared to December 2024.

• Assets under management increased 3.9% to AUD 5.4 billion since June 2025.

• Focused on defensive, resilient cash flows from convenience-based, non-discretionary retail centres with long leases to quality anchor tenants.

Financial highlights

• Comparable MAT growth was 3.1% per annum, with supermarkets, discount department stores, and specialties all contributing.

• Comparable NOI growth was 3.7% year-over-year; total net operating income grew 5.3%.

• Distribution per security matched AFFO at AUD 0.069, with a 100% payout ratio.

• NTA per security increased 3.6% to AUD 2.56.

• Gearing at 32.7%, at the lower end of the target range.

Outlook and guidance

• Upgraded FY26 guidance: FFO of AUD 0.16 per security (up 3.2% on FY25), AFFO of AUD 0.141 per security (up 2.9%).

• Medium to long-term FFO and AFFO growth targeted at 3%-4% per annum.

• No debt expiries until FY28, with AUD 355.5 million in available liquidity.

• CEO transition announced, with Greg Chubb to succeed Anthony Mellowes in March 2026.

• Proactive capital management and disciplined acquisitions/disposals to continue.