HomeCo Daily Needs REIT (AU:HDN)
ASX:HDN
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HomeCo Daily Needs REIT
(Sydney:HDN)
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Rating:76Outperform
Price Target:
AU$1.50
â–²(15.38% Upside)
Action:ReiteratedDate:02/11/26
The score is driven primarily by strong underlying financial performance and a supportive valuation (low P/E and high dividend yield). Earnings call updates reinforced operational strength and reiterated guidance, but elevated interest costs and an above-target payout ratio temper the outlook. Technical signals remain weaker, with the stock trading below key moving averages and negative MACD.
Positive Factors
Portfolio scale, location and steady demand
A large, concentrated portfolio in metropolitan catchments creates durable footfall and tenant demand for daily-needs retail. The scale and dense population reach (12.7m within 10km) plus long-term population growth support stable occupancy, rental reversion potential and predictable cashflows over multiple years.
Negative Factors
Payout ratio above AFFO target
Distributions funded above AFFO are not sustainable long-term and can erode balance sheet flexibility. Management intends to right-size payouts over 2–3 years, but until achieved the high payout rate constrains retained capital for reinvestment and increases sensitivity to any earnings or valuation setbacks.
Read all positive and negative factors
Positive Factors
Negative Factors
Portfolio scale, location and steady demand
A large, concentrated portfolio in metropolitan catchments creates durable footfall and tenant demand for daily-needs retail. The scale and dense population reach (12.7m within 10km) plus long-term population growth support stable occupancy, rental reversion potential and predictable cashflows over multiple years.
Read all positive factors
HomeCo Daily Needs REIT (HDN) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$2.51B
Dividend Yield6.09%
Average Volume (3M)3.95M
Price to Earnings (P/E)2.9
Beta (1Y)0.55
Revenue Growth2.70%
EPS Growth205.08%
CountryAU
EmployeesN/A
SectorReal Estate
Sector Strength53
IndustryREIT - Retail
Share Statistics
EPS (TTM)0.12
Shares Outstanding2,089,299,000
10 Day Avg. Volume2,456,934
30 Day Avg. Volume3,951,876
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)0.85
Price to Sales (P/S)7.14
P/FCF Ratio14.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$1.40Price Target Upside7.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)0.09
Revenue Forecast (FY)AU$334.56M
HomeCo Daily Needs REIT Business Overview & Revenue Model
Company Description
HomeCo Daily Needs REIT is an Australian Real Estate Investment Trust listed on the ASX with a mandate to invest in convenience-based assets across the target sub-sectors of Neighbourhood Retail, Large Format Retail and Health & Services. HomeCo D...
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. Thes...
HomeCo Daily Needs REIT Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q2-2026)
| Next Earnings Date:Aug 13, 2026
Earnings Call Sentiment Positive
The call presented a solid operational and financial performance: FFO and NOI growth, strong leasing metrics, high occupancy and cash collection, positive valuation uplifts and reaffirmed guidance. The balance sheet shows prudent capital management with successful refinancing and increased hedging. Key risks highlighted were higher interest costs, a payout ratio above targeted levels (~106% of AFFO), and a cautious stance on near-term development deployment due to macro and rate uncertainty. On balance, the positives around portfolio quality, execution, valuation gains and reiterated guidance outweigh the challenges, though interest-rate-driven constraints and the need to right-size distributions are notable caveats.Positive Updates
FFO and Earnings Growth
FFO for the half was $92.4 million (FFO per unit $0.044), up from $0.043 in the prior corresponding period (management cited ~+2.5% FFO per unit growth). FY'26 FFO guidance reaffirmed at $0.09 per unit.
Negative Updates
Higher Interest Costs and Finance Expense Increase
Net interest expense rose in the half reflecting the higher interest rate environment; management noted increased net finance costs (timing/roll-off effects cited) including an incremental ~$16.5 million increase versus the prior comparable period, partially offset by stronger revenue and higher hedging.
Read all updates
Q2-2026 Updates
Positive
Negative
FFO and Earnings Growth
FFO for the half was $92.4 million (FFO per unit $0.044), up from $0.043 in the prior corresponding period (management cited ~+2.5% FFO per unit growth). FY'26 FFO guidance reaffirmed at $0.09 per unit.
Read all positive updates
Company Guidance
Management reaffirmed FY‑26 guidance of FFO $0.09 per unit and distributions $0.086 per unit, after H1 results of FFO $92.4m ($0.044/unit) and H1 distributions $0.043/unit; H1 property NOI was $148.7m (+4.6%) with comparable NOI growth of 4%, leasing spreads of 6.2% across 97 deals, WALE 4.9 years, occupancy and cash collection >99%, and sustainable rents of $440/sqm; NTA rose to $1.55/unit (from $1.47), portfolio value is $5.1bn (2.3m sqm, 36% site coverage), gross valuation uplift $212m ($143m net), gearing 35.2% (34.6% pro forma, target range 30–40%), 70% hedged, WACD 4.8%, weighted average cap rate 5.51%, pro forma liquidity $80m, development pipeline $650m targeting ROIC ≥7% (historic completions >8.4%), and trading metrics show MAT +2.4% (non‑supermarket +3.7%) with 88% of income indexed at a WA 3.5% annual increase.HomeCo Daily Needs REIT Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
75
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 375.30M | 364.70M | 355.40M | 347.80M | 198.30M | 45.20M |
| Gross Profit | 260.80M | 251.10M | 241.00M | 240.10M | 135.90M | 28.50M |
| EBITDA | 396.80M | 331.70M | 210.00M | 238.80M | 358.10M | 27.20M |
| Net Income | 377.00M | 250.30M | 82.00M | 102.20M | 335.10M | 31.30M |
Balance Sheet | ||||||
| Total Assets | 5.19B | 4.96B | 4.79B | 4.83B | 4.86B | 1.39B |
| Cash, Cash Equivalents and Short-Term Investments | 25.40M | 18.00M | 12.40M | 16.20M | 23.20M | 249.50M |
| Total Debt | 1.84B | 1.75B | 1.68B | 1.64B | 1.60B | 425.80M |
| Total Liabilities | 1.96B | 1.89B | 1.79B | 1.75B | 1.72B | 457.30M |
| Stockholders Equity | 3.23B | 3.07B | 2.99B | 3.08B | 3.14B | 933.10M |
Cash Flow | ||||||
| Free Cash Flow | 145.00M | 174.70M | 169.10M | -25.70M | 141.00M | 22.90M |
| Operating Cash Flow | 145.00M | 174.70M | 169.10M | 169.70M | 146.90M | 22.90M |
| Investing Cash Flow | -13.40M | -66.70M | -53.90M | -49.50M | -905.80M | -722.00M |
| Financing Cash Flow | -121.60M | -102.40M | -119.00M | -127.20M | 534.90M | 948.60M |
HomeCo Daily Needs REIT Technical Analysis
Negative
1.30
Price Trends
1.28
Negative
1.31
Negative
1.30
Negative
Market Momentum
-0.03
Positive
36.46
Neutral
29.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:HDN, the sentiment is Negative. The current price of 1.3 is above the 20-day moving average (MA) of 1.23, above the 50-day MA of 1.28, and above the 200-day MA of 1.30, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 36.46 is Neutral, neither overbought nor oversold. The STOCH value of 29.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:HDN.
HomeCo Daily Needs REIT Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | AU$2.51B | 2.94 | 11.96% | 6.09% | 2.70% | 205.08% | |
70 Outperform | AU$2.52B | 3.79 | 10.68% | 5.61% | 0.03% | 1135.14% | |
69 Neutral | AU$2.65B | 3.21 | 11.25% | 4.87% | 16.53% | 36.39% | |
67 Neutral | AU$378.83M | 2.70 | 11.81% | 7.46% | -3.97% | 1057.09% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | AU$2.21B | 2.46 | 12.47% | 7.72% | -9.69% | 1142.57% | |
57 Neutral | AU$961.22M | 24.03 | -0.16% | 3.17% | 206.14% | 101.96% |
* Real Estate Sector Average
AU:HDN
HomeCo Daily Needs REIT
1.20
0.06
5.08%
AU:RGN
Region Group
2.19
0.19
9.72%
AU:CQR
Charter Hall Retail REIT
3.80
0.45
13.33%
AU:DXC
Dexus Convenience Retail REIT
2.75
0.00
0.00%
AU:BWP
BWP Trust
3.66
0.33
9.98%
AU:HMC
Home Consortium Ltd
2.33
-4.26
-64.62%
HomeCo Daily Needs REIT Corporate Events
HomeCo Daily Needs REIT Sets Agenda for 1H FY26 Results Update
Feb 10, 2026
HomeCo Daily Needs REIT has outlined its 1H FY26 results agenda, signaling an upcoming detailed update on performance, portfolio activity, growth initiatives, and financial metrics. The presentation, led by senior executives from HMC Capital and t...
HomeCo Daily Needs REIT posts higher 1H FFO and reaffirms FY26 outlook
Feb 10, 2026
HomeCo Daily Needs REIT reported first-half FY26 growth in funds from operations, supported by positive asset revaluations, disciplined asset recycling and a sizeable development pipeline. The trust achieved a 4.5% uplift in portfolio value, dives...
HomeCo Daily Needs REIT doubles half-year profit and lifts NTA
Feb 10, 2026
HomeCo Daily Needs REIT reported revenue from ordinary activities of $190.4 million for the half-year ended 31 December 2025, up 6% from a year earlier. Profit after tax surged 108% to $243.5 million, reflecting stronger operating performance and ...
HMC Capital Sets February Dates for Half-Year Results Across REIT Platform
Jan 19, 2026
HMC Capital has issued an advance schedule for the release of half-year financial results to 31 December 2025 for itself and its listed vehicles HomeCo Daily Needs REIT, DigiCo Infrastructure REIT and HealthCo Healthcare Wellness REIT, with resul...
HomeCo Daily Needs REIT Sets DRP Issue Price at $1.36 per Unit
Jan 12, 2026
HomeCo Daily Needs REIT has set the issue price for its Distribution Reinvestment Plan at $1.36 per unit for the quarter ended 31 December 2025. The new units, to be issued on or around 26 February 2026, will rank equally with existing securities,...
HomeCo Daily Needs REIT Announces Quarterly Distribution
Dec 12, 2025
HomeCo Daily Needs REIT has announced a new distribution for its ordinary units, set at AUD 0.0215 per unit. The distribution relates to the quarter ending December 31, 2025, with the ex-date on December 30, 2025, and the payment date scheduled fo...
HomeCo Daily Needs REIT Achieves $219 Million Valuation Gain and Refinances Debt
Dec 10, 2025
HomeCo Daily Needs REIT announced a significant gross valuation gain of $219 million, reflecting a 4.5% increase in portfolio value, driven by strong net operating income growth and cap rate tightening. The company successfully refinanced $810 mil...
HomeCo Daily Needs REIT Issues New Securities to Strengthen Market Position
Nov 24, 2025
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 c...
HomeCo Daily Needs REIT Announces Quarterly Distribution
Nov 20, 2025
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 ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.