Key points
- ~$200m of acquisitions
- ~$250m of traditional LFR disposals and contracted asset sales
- ~$75m of pre-committed development projects commenced in 1H FY25 targeting ~7%+ ROIC
- Identified development pipeline of $650m+ targeting ~7%+ ROIC
Full summary
HomeCo Daily Needs REIT (HDN) has released its results for the half year ended 31 December 2024, showcasing a strong first half performance. The key highlights for the period include ~$200m of acquisitions, ~$250m of traditional LFR disposals and contracted asset sales broadly in line with book value, and ~$75m of pre-committed development projects commenced in 1H FY25 targeting ~7%+ ROIC. HDN also has an identified development pipeline of $650m+ targeting ~7%+ ROIC. The company has maintained over 99% occupancy and cash rent collections since its IPO, and delivered +4.0% comparable property NOI growth, consistent with FY25 guidance. Financially, HDN reported 1H FY25 FFO/unit of 4.3 cents ($89.9m) and 1H FY25 DPU of 4.3 cents. The company's Dec-24 pro-forma gearing is 34.6% at the midpoint of the 30-40% target range, with 80% of drawn debt hedged. HDN's NTA/unit increased to $1.45, up 1% versus Jun-24. The company has reaffirmed its FY25 FFO guidance of 8.8cpu, representing 2.3% growth versus FY24, and its FY25 Distribution guidance of 8.5cpu, representing 2.4% growth versus FY24.
Guidance
FY25 FFO guidance of 8.8cpu, representing 2.3% growth versus FY24. FY25 Distribution guidance of 8.5cpu, representing 2.4% growth versus FY24.
Outlook
HDN's development pipeline remains robust at over $650 million, with both commenced and future projects targeting ~7%+ ROIC. The company plans to commence between $100-120 million of development projects in FY25, which includes projects already underway at Tuggerah and Castle Hill.