Region Group (RGN) H1 2026 earnings summary

Executive summary

• Statutory net profit after tax reached $180 million, reflecting fair value gains on investment properties and more than doubling year-over-year.

• FFO per security rose 3.9% to 7.9 cents, AFFO per security increased 3.0% to 6.9 cents, and distributions matched AFFO.

• Portfolio occupancy improved to 97.7%, with a strong focus on nondiscretionary tenants and geographic diversification.

• Assets under management grew 3.9% to $5.4 billion; net tangible assets per security up 3.6% to $2.56.

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

Financial highlights

• FFO per security up 3.9% year-over-year to 7.9 cents; AFFO per security up 3.0% to 6.9 cents; distribution per security also 6.9 cents.

• Net tangible assets per security increased 3.6% to $2.56 since June 2025.

• Assets under management rose 3.9% to $5.4 billion since June 2025.

• Comparable net operating income (NOI) grew 3.7%; total NOI up 5.3% year-over-year.

• Gearing at 32.7%, at the lower end of the 30-40% target range.

Outlook and guidance

• FY26 FFO guidance upgraded to 16.0 cents per security (up 3.2% on FY25); AFFO guidance raised to 14.1 cents per security (up 2.9%).

• Target payout ratio: ~90% of FFO and ~100% of AFFO.

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

• Comparable NOI growth guidance maintained at 3.3% for the full year.

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