Region Group (RGN) H2 2025 earnings summary

Executive summary

• Statutory net profit after tax reached AUD 212.5 million, driven by valuation growth and resilient operational metrics, up from AUD 17.3 million in the prior year.

• FFO per security was AUD 0.155 (15.5 cps), AFFO per security was AUD 0.137 (13.7 cps), both in line with guidance.

• Distribution was AUD 0.137 per security, representing a 100% payout of AFFO and 88%-100% payout of FFO.

• Portfolio occupancy remained high at 97.5%, with a strong focus on non-discretionary tenants and proactive leasing.

• Sustainability initiatives advanced, with 21.7 MW of solar PV installed across 33 sites and $14 million invested towards Net Zero.

Financial highlights

• Statutory profit for the year was AUD 212.5 million, up from AUD 17.3 million, driven by property revaluations.

• FFO grew 0.6% year-over-year; comparable NOI increased by 3.2%; property income rose 1.9% to AUD 390.6 million.

• NTA per security rose to AUD 2.47, supported by an 8.7% increase in total assets under management to AUD 5.2 billion.

• Weighted average cost of debt stable at 4.3%, with 97% of debt hedged or fixed; gearing at 32.5%, at the lower end of the target range.

• Portfolio valuation increased by AUD 92 million, with cap rates firming by 10 bps to 5.97%.

Outlook and guidance

• FY 2026 FFO guidance is at least AUD 0.159 (15.9 cps) per security, with AFFO at least AUD 0.14 (14.0 cps) per security.

• Targeting medium to longer-term FFO and AFFO growth of at least 3%-4% per annum, supported by NOI growth and disciplined capital deployment.

• Distribution payout ratio expected at ~90% of FFO and ~100% of AFFO.

• Weighted average cost of debt expected to rise to 4.6% in FY 2026.

• Guidance assumes no significant market changes and no additional acquisitions or buy-backs beyond those disclosed.