Region Group (RGN) H2 2026 earnings summary

Executive summary

• Delivered strong FY26 results with statutory net profit after tax of AUD 268.8 million, resilient performance from a supermarket-led essential retail portfolio, and a 9.8% total security holder return, outperforming key benchmarks.

• Portfolio occupancy reached 98.1%, with over 70% of sales from supermarkets and 88% of income from non-discretionary retailers.

• Achieved high occupancy, positive leasing spreads, and robust specialty and supermarket sales growth, reinforcing defensive income and portfolio resilience.

• Strategic capital recycling included divesting two centres for AUD 32.8 million and acquiring a centre for AUD 53.0 million, expanding funds under management.

• Sustainability initiatives advanced, with 21.8MW of solar PV installed and progress toward Net Zero by FY30.

Financial highlights

• Statutory net profit after tax rose to AUD 268.8 million for FY26, up from AUD 212.5 million year-over-year.

• FFO per security grew 3.2% year-over-year to AUD 0.16; AFFO per security increased to AUD 0.141, with 100% payout.

• NTA per security rose 4% to AUD 2.57; total assets under management reached AUD 5.53 billion, up 5.5%.

• Portfolio occupancy increased to 98.1%; comparable NOI growth of 3.3%.

• Over AUD 1 billion of debt refinanced at improved margins; weighted average cost of debt at 4.5%.

Outlook and guidance

• FY27 guidance targets 3% growth in FFO to AUD 0.165 per security and AFFO to AUD 0.145 per security, with 100% payout ratio.

• Strategy aims for 3%-4%+ sustainable AFFO growth per security, driven by organic asset management and selective inorganic opportunities.

• Guidance assumes no material change in market conditions and excludes undisclosed transactional activity.

• Favourable market conditions and sector fundamentals expected to support continued growth.