HomeCo Daily Needs REIT (HDN) AI Stock Analysis

• Market Cap: AU$2.92B
• Dividend Yield: 6.09%
• Average Volume (3M): 3.95M
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.43
• Revenue Growth: 2.70%
• EPS Growth: 205.08%
• Country: AU
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Retail
• EPS (TTM): 0.04
• Shares Outstanding: 2,088,098,600
• 10 Day Avg. Volume: 2,456,934
• 30 Day Avg. Volume: 3,951,876
• PEG Ratio: 0.05
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 7.14
• P/FCF Ratio: 14.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$1.46
• Price Target Upside: 4.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: AU$1.50 ▲(7.14% Upside)

HomeCo Daily Needs REIT is supported by strong financial performance and attractive valuation. The technical indicators show positive momentum, though caution is advised due to potential overbought conditions. The absence of earnings call and corporate events data does not impact the overall positive outlook.

Positive Factors

Healthy Balance Sheet

A healthy balance sheet with moderate leverage provides financial flexibility, allowing the company to pursue growth opportunities and manage economic downturns effectively.

High Profit Margins

High profit margins indicate efficient operations and strong pricing power, enhancing the company's ability to reinvest in growth and withstand market fluctuations.

Stable Cash Flows

Long-term lease agreements with diverse tenants ensure stable cash flows, supporting financial stability and enabling strategic growth initiatives.

Negative Factors

Decreasing Return on Equity

A declining return on equity suggests inefficiencies in utilizing shareholder funds, which may hinder the company's ability to deliver strong returns in the future.

Negative Free Cash Flow Growth

Negative free cash flow growth can constrain the company's ability to invest in new projects or return capital to shareholders, affecting long-term growth prospects.

Modest Revenue Growth

Modest revenue growth may limit the company's ability to scale rapidly, potentially impacting its competitive positioning in a dynamic retail market.

HomeCo Daily Needs REIT Business Overview & Revenue Model

Company Description

HomeCo Daily Needs REIT (HDN) is a real estate investment trust focused on acquiring, owning, and managing a diversified portfolio of retail properties that cater to everyday consumer needs. Primarily investing in retail centers anchored by essential services such as grocery stores, pharmacies, and convenience stores, HDN aims to provide stable income and long-term capital appreciation through its holdings in high-demand locations across various markets.

How the Company Makes Money

HomeCo Daily Needs REIT generates revenue primarily through rental income from its retail properties. The company leases space to a variety of tenants, including national and regional retailers, which pay rent on a monthly or quarterly basis. These leases often include provisions for rent escalations over time, contributing to revenue growth. Additionally, HDN may benefit from percentage rent agreements, where tenants pay a percentage of their sales in addition to base rent, providing an added revenue stream during high-performing sales periods. The strategic focus on daily needs retail ensures high occupancy rates, as these types of stores tend to have consistent demand. Furthermore, HDN may engage in partnerships with local businesses and community organizations to enhance tenant engagement and drive foot traffic, which can positively impact rental income.

HomeCo Daily Needs REIT Financial Statement Overview

Summary

HomeCo Daily Needs REIT demonstrates strong profitability with high margins and a solid balance sheet. However, modest revenue growth and negative free cash flow growth are concerns.

Income Statement

HomeCo Daily Needs REIT shows strong profitability with a consistently high gross profit margin around 68% and a remarkable net profit margin of 68.6% in the latest year. Revenue growth is modest at 2.2%, indicating stable but slow expansion. EBIT and EBITDA margins are exceptionally high, reflecting efficient operations.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.57, indicating moderate leverage. The equity ratio is strong, suggesting a solid capital structure. However, the return on equity has decreased over the years, signaling potential challenges in generating returns from equity.

Cash Flow

Operating cash flow is robust, with a coverage ratio of 1.33, indicating good cash generation relative to net income. However, free cash flow growth is negative, which could be a concern if it persists. The free cash flow to net income ratio is stable at 1.0, showing efficient cash conversion.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	364.70M	364.70M	355.40M	347.80M	198.30M	45.20M
Gross Profit	251.10M	251.10M	241.00M	240.10M	135.90M	28.50M
EBITDA	108.80M	331.70M	210.00M	238.80M	358.10M	27.20M
Net Income	250.30M	250.30M	82.00M	102.20M	335.10M	31.30M
Balance Sheet
Total Assets	4.96B	4.96B	4.79B	4.83B	4.86B	1.39B
Cash, Cash Equivalents and Short-Term Investments	18.00M	18.00M	12.40M	16.20M	23.20M	249.50M
Total Debt	1.75B	1.75B	1.68B	1.64B	1.60B	425.80M
Total Liabilities	1.89B	1.89B	1.79B	1.75B	1.72B	457.30M
Stockholders Equity	3.07B	3.07B	2.99B	3.08B	3.14B	933.10M
Cash Flow
Free Cash Flow	180.70M	174.70M	169.10M	-25.70M	141.00M	22.90M
Operating Cash Flow	180.70M	174.70M	169.10M	169.70M	146.90M	22.90M
Investing Cash Flow	-74.70M	-66.70M	-53.90M	-49.50M	-905.80M	-722.00M
Financing Cash Flow	-102.40M	-102.40M	-119.00M	-127.20M	534.90M	948.60M

HomeCo Daily Needs REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:HDN, the sentiment is Positive. The current price of 1.4 is above the 20-day moving average (MA) of 1.37, above the 50-day MA of 1.37, and above the 200-day MA of 1.28, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 58.11 is Neutral, neither overbought nor oversold. The STOCH value of 85.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:HDN.

HomeCo Daily Needs REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HDN	80 Outperform	AU$2.92B	11.65	8.25%	6.09%	2.70%	205.08%
HMC	79 Outperform	AU$1.64B	10.80	10.22%	3.02%	206.14%	101.96%
RGN	69 Neutral	AU$2.86B	13.46	7.29%	5.61%	0.03%	1135.14%
BWP	68 Neutral	AU$2.93B	10.85	9.58%	4.87%	16.53%	36.39%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
CQR	64 Neutral	AU$2.39B	11.17	8.13%	7.72%	-9.69%	1142.57%
DXC	64 Neutral	AU$388.47M	9.87	7.93%	7.46%	-3.97%	1057.09%

HomeCo Daily Needs REIT Corporate Events

HomeCo Daily Needs REIT Issues New Securities to Strengthen Market Position

HomeCo Daily Needs REIT has announced the issuance of 1,280,264 fully paid ordinary units, which will be quoted on the Australian Securities Exchange (ASX) under the code HDN. This move is part of a dividend or distribution plan and reflects the company’s strategy to enhance its financial flexibility and potentially expand its portfolio, thereby reinforcing its market position and offering value to its stakeholders.

HomeCo Daily Needs REIT Announces Quarterly Distribution

HomeCo Daily Needs REIT announced a cash distribution of 2.150000 cents per unit for the quarter ending September 30, 2025. This distribution includes a fund payment component of 0.878483 cents per unit, aligning with its status as an attribution managed investment trust for the fiscal year ending June 2026. The announcement reinforces HDN’s commitment to providing consistent returns to its unitholders and highlights its strategic positioning in the Australian real estate market.

HomeCo Daily Needs REIT Announces DRP Issue Price

HomeCo Daily Needs REIT announced the Distribution Reinvestment Plan (DRP) issue price of $1.37 per unit for the quarter ending 30 September 2025. The DRP units will be issued on or around 24 November 2025 and will rank equally with existing securities, reflecting HDN’s ongoing efforts to provide value to its stakeholders and maintain its position as a leading player in the Australian real estate investment sector.

HomeCo Daily Needs REIT Appoints New Director Sid Sharma

HomeCo Daily Needs REIT has announced the appointment of Sid Sharma as a director, effective October 6, 2025. Sharma holds 54,311 units through SBSF Co Pty Ltd, trading as SBS Family Trust, where he serves as a director. This appointment could potentially influence the company’s strategic direction and stakeholder interests, given Sharma’s involvement in the trust holding a significant number of units.

HomeCo Daily Needs REIT Appoints Sid Sharma to Board

HomeCo Daily Needs REIT has appointed Sid Sharma as a Director to its Board, recognizing his significant contributions to the company’s growth and success. Sid Sharma, who has been with HMC Capital since 2019 and currently serves as the CEO of HDN and Managing Director of Real Estate at HMC Capital, brings extensive real estate experience to the board, which is expected to strengthen HDN’s strategic positioning in the market.

HomeCo Daily Needs REIT Releases 2025 Annual Report

HomeCo Daily Needs REIT has released its Annual Report for the year ending 30 June 2025, highlighting its continued focus on convenience-based real estate investments. With assets valued at approximately $4.9 billion, the company maintains a strong presence in Australia’s major metropolitan areas, aiming to deliver consistent growth and returns to its unitholders. The report underscores HDN’s strategic investments and its role as a leading player in the daily needs real estate sector.

HomeCo Daily Needs REIT Declares September 2025 Distribution

HomeCo Daily Needs REIT has announced a quarterly distribution of 2.150 cents per unit for the period from July to September 2025. The Distribution Reinvestment Plan is active for this period, with key dates set for the ex-distribution, record, and payment dates. This declaration reflects HDN’s commitment to providing consistent and growing distributions to its unitholders, reinforcing its position as a leading player in the Australian real estate market.

HomeCo Daily Needs REIT Announces Quarterly Distribution

HomeCo Daily Needs REIT has announced a new distribution of AUD 0.0215 per ordinary unit for the quarter ending September 30, 2025. The ex-date for this distribution is set for September 29, 2025, with a record date of September 30, 2025, and payment scheduled for November 24, 2025. This announcement reflects the company’s ongoing commitment to providing returns to its stakeholders, potentially enhancing its market position within the REIT sector.

BlackRock Group Ceases Substantial Holding in HomeCo Daily Needs REIT

HomeCo Daily Needs REIT has announced that BlackRock Group, including BlackRock Inc. and its subsidiaries, has ceased to be a substantial holder in the company as of September 8, 2025. This change in substantial holding could impact the company’s voting securities and potentially alter its market dynamics, reflecting shifts in stakeholder interests and investment strategies.