HomeCo Daily Needs Reit (HDN) has reported an increase in portfolio valuation for the past six months, marking its fourth consecutive period of growth.
The company’s preliminary unaudited portfolio valuation rose 4.5 per cent to $5.095 billion as at December, compared to $4.961 billion recorded in June.
Net of disposals and capital expenditure incurred during the period was $76 million, representing a net valuation increase of 2.9 per cent.
“This is the fourth consecutive period HDN has recorded positive net revaluation gains,” said HDN fund manager Paul Doherty.
“The positive valuation gain has been driven by strong net operating income growth, accretive tenant led developments and capitalisation rate tightening.”
According to Doherty, investor demand for daily needs retail property remains strong, underpinned by the non-discretionary focus of the income and high-quality tenant covenants.
“Over the five years since listing in November 2020, the portfolio has consistently delivered industry leading operational performance with high occupancy and rent collection of >99 per cent, complemented by our developments delivering both incremental net operating income and valuation gains,” he added.
During the period, the company completed a successful refinance of an $810 million tranche of its debt facility that was due to expire next July. This tranche has been extended and will now mature in July 2028.
For FY26, HDN continues to expect distribution per unit (DPU) of 8.6 cents and funds from operations (FFO) of 9.0 cents per unit.
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