HomeCo Daily Needs REIT - 1H FY24 Results

HomeCo Daily Needs REIT (ASX: HDN) today released its results for the half year ended 31 December 2023 with the REIT delivering FFO/unit of 4.3 cents and DPU of 4.2 cents. Today's result reinforced HDN’s strong operational performance, solid leasing metrics and active asset recycling strategy.

Key highlights include:
1. >99% occupancy and >99% cash rent collections maintained since IPO 
2. +4.0% comparable property NOI growth
3. Dec-23 gearing of 34.3% at the lower end of the 30-40% target range 
4. Dec-23 interest rate hedging of 92.4% 
5. Capital recycling with $302m of traditional LFR asset sales partially recycled into the acquisition of two brand new Woolworths anchored daily needs assets: Leppington and Kellyville West

HDN CEO Sid Sharma said: “Our assets continue to outperform, which is translating into strong re-leasing spreads of 6.4% whilst importantly maintaining low incentives of ~5%. This is underpinned by HDN’s exposure to a predominantly national tenant base, metropolitan locations and focus on essential retail and services, which are noncyclical. Development remains a key strategic focus where we can generate attractive risk adjusted returns. ” 
 
FY24 guidance has been reaffirmed at FFO/unit of 8.6 cents and DPU of 8.3 cents.

For additional information please refer to the 1H FY24 financial results presentation here or visit the investor centre.