HomeCo Daily Needs REIT (ASX: HDN) today released its full year FY24 results

HomeCo Daily Needs REIT (ASX: HDN) today released its results for the full year ended 30 June 2024 delivering FFO/unit of 8.6 cents and DPU of 8.3 cents in line with guidance. 

Today’s result underscores the strong rationale behind HDN’s Model portfolio strategy. Key highlights for the period include; 

1. Continued strong operational performance with +4.0% comparable property NOI growth, >99% occupancy and >99% cash rent collections maintained since IPO. 
2. Sector leading +6.0% positive releasing spreads underpinned by strategic network of sites located across metropolitan growth corridors. 
3. Development pipeline upscaled to >$700m and expected to deliver compelling risk-adjusted returns. 
4. Active asset recycling strategy with $420m of traditional LFR asset sales at blended yield ~6% with proceeds partially reinvested into $293m of high quality daily needs assets acquisitions at a ~7% target yield. 

HDN CEO Sid Sharma said: “The strong set of FY24 results reflect our strategically located metropolitan assets which have limited exposure to cyclical and discretionary retail expenditure. The strong rental reversion we are achieving demonstrates the inherent value proposition of our real estate, which is predominately leased to leading national and ASX listed tenants.”

FY25 guidance has been provided at FFO of 8.8cpu and DPU of 8.5cpu.

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