HomeCo Daily Needs Reit has reported an uplift in funds from operations (FFO) for the last fiscal year as its occupancy rate remained above 99 per cent.
For the year ended June 30, the company’s FFO per unit increased 2.3 per cent to 8.8 cents, while distribution per unit (DPU) rose 2.4 per cent to 8.5 cents. Net tangible assets (NTA) per unit improved 1.4 per cent to $1.47, driven by strong asset revaluations.
The company noted it maintained occupancy and cash rent collections at over 99 per cent since its IPO. Comparable net operating income rose 4 per cent and re-leasing spreads increased 6 per cent.
Gross valuation gain was approximately $270 million, while like-for-like asset value was up 6 per cent.
The company said it has about 18 projects in the pipeline, which are worth more than $650 million.
“The strong set of FY25 results reflects our strategically located metropolitan assets which have limited exposure to cyclical and discretionary retail expenditure,” said HomeCo CEO Sid Sharma.
“The strong rental reversion we are achieving demonstrates the inherent value proposition of our real estate, which is predominantly leased to leading national tenants.”
For FY26, the company expects FFO per unit of 9 cents and DPU of 8.6 cents.
HomeCo has total assets of approximately $4.9 billion, spanning approximately 2.5 million square metres of land in Sydney, Melbourne, Brisbane, Perth and Adelaide.
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