Region Group (RGN) H1 2026 earnings summary

Executive summary

• Statutory net profit after tax reached $180.0 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, and AFFO per security increased 3.0% to 6.9 cents.

• Distribution per security was 6.9 cents, representing 87% payout of FFO and 100% of AFFO.

• Assets under management increased 3.9% to $5.4 billion, with net tangible assets per security up 3.6% to $2.56.

• Portfolio occupancy improved to 97.7%, with a strong focus on non-discretionary tenants and resilient operational performance.

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%.

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

• Weighted average cap rate compressed by 10 bps to 5.87%.

• 6.7 million securities repurchased for $16.0 million at an average price of $2.39 as part of an on-market buy-back.

Outlook and guidance

• FY26 FFO guidance upgraded to 16.0 cents per security (up 3.2% from 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.

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

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