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HomeCo Daily Needs REIT
(Sydney:HDN)
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Rating:68Neutral
Price Target:
AU$1.50
â–²(20.00% Upside)
Action:Downgraded
Date:08/17/26
The score is driven primarily by a healthy underlying financial profile and constructive earnings-call fundamentals (high occupancy/collections, NOI and NTA growth), plus an attractive valuation (low P/E and high yield). These positives are tempered by weak technical momentum (price below major moving averages and very low RSI) and financial statement risks around earnings volatility and uneven cash-flow conversion.
Positive Factors
High Profitability
Exceptionally high gross and net margins reflect an efficient operating model and low variable costs across the portfolio. Durable margins support internal cash generation, provide a buffer against rising financing costs, and underpin longer-term distribution capacity despite modest revenue growth.
Negative Factors
Distribution Sustainability
Payouts exceeding AFFO indicate distributions are partly funded by non‑recurring items or capital flows. Sustained payouts above earnings increase the risk of distribution cuts or forced reliance on asset sales or higher leverage as management moves to right‑size distributions over a 2–3 year horizon.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
Exceptionally high gross and net margins reflect an efficient operating model and low variable costs across the portfolio. Durable margins support internal cash generation, provide a buffer against rising financing costs, and underpin longer-term distribution capacity despite modest revenue growth.
Read all positive factors
HomeCo Daily Needs REIT (HDN) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$2.41B
Dividend Yield7.45%
Average Volume (3M)3.95M
Price to Earnings (P/E)6.3
Beta (1Y)0.54
Revenue Growth3.75%
EPS Growth44.09%
CountryAU
EmployeesN/A
SectorReal Estate
Sector Strength53
IndustryREIT - Retail
Share Statistics
EPS (TTM)0.18
Shares Outstanding2,090,705,000
10 Day Avg. Volume2,456,934
30 Day Avg. Volume3,951,876
Financial Highlights & Ratios
PEG Ratio0.18
Price to Book (P/B)0.82
Price to Sales (P/S)6.48
P/FCF Ratio18.77
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$1.34Price Target Upside7.20% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)0.09
Revenue Forecast (FY)AU$348.46M
HomeCo Daily Needs REIT Business Overview & Revenue Model
Company Description
HomeCo Daily Needs REIT (ASX:HDN) is an Australian Real Estate Investment Trust focused on acquiring convenience-oriented properties across various sub-sectors, including Neighbourhood Retail, Large Format Retail, and Health & Services. The trust'...
How the Company Makes Money
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HomeCo Daily Needs REIT Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Feb 16, 2027
Earnings Call Sentiment Neutral
The call presents a broadly resilient operational performance with strong occupancy, rent collection, NOI growth, NTA uplift and a well-diversified, defensive portfolio. Liquidity, a stronger unsecured debt platform and an inaugural BBB+ rating support balance sheet flexibility. However, near-term profitability and distributable earnings are constrained by a choppy interest rate environment, higher net interest expense and a deliberate pause on some development activity while yield thresholds are reassessed. Management positions the business defensively with capital recycling options open, producing a balanced outlook between solid fundamentals and clear macro-driven headwinds.Positive Updates
FFO and Distribution Delivered to Guidance
FFO of $187.1m or $0.09 per unit (up 2% on FY'25) and distributions of $0.086 per unit, both in line with guidance.
Negative Updates
Choppy Interest Rate Environment and Earnings Headwind
Weighted average cost of debt rose to 5.0% (from 4.8% a year earlier); management flags a material step-up in interest expense expected to offset NOI growth and drive FY'27 earnings pressure, noting drawn debt is ~A$100m higher due to development rollout.
Read all updates
Q4-2026 Updates
Positive
Negative
FFO and Distribution Delivered to Guidance
FFO of $187.1m or $0.09 per unit (up 2% on FY'25) and distributions of $0.086 per unit, both in line with guidance.
Read all positive updates
Company Guidance
HDN's FY'27 guidance is for FFO of $0.088 per unit and distributions of $0.086 per unit, driven by continued top‑line income growth but offset by a step‑up in borrowing costs (weighted average cost of debt ~5% at June '26, up from 4.8%, and management expecting c.50bps higher over the next 12 months) and roughly $100m of additional drawn debt; the guidance assumes no acquisitions or divestments. Key balance‑sheet metrics supporting the outlook are portfolio value $5.2bn, NTA $1.56 (up 6.1% from $1.47), gearing 35.7% (midpoint of a 30–40% target), liquidity $288m ($250m undrawn + $38m cash), weighted‑average debt tenor 3.1 years, blended margin ~120bps, hedge coverage 68% (rising to 75% in December) and the next $800m maturity in FY'28. Operationally the business points to FY'26 comparables that underpin the guidance: property NOI $298.7m (comparable NOI +4.0%), leasing spreads 5.9% (incentives 4.9%), occupancy ~99%, rent collection >99%, average gross rent $448/sqm, weighted average rent review 3.6%, ~126m customer visits, and a $650m tenant‑led development pipeline targeting >7% ROIC.HomeCo Daily Needs REIT Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
61
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 412.60M | 364.70M | 355.40M | 347.80M | 198.30M |
| Gross Profit | 295.00M | 251.10M | 241.00M | 240.10M | 135.90M |
| EBITDA | 262.70M | 331.70M | 210.00M | 238.80M | 358.10M |
| Net Income | 361.60M | 250.30M | 82.00M | 102.20M | 335.10M |
Balance Sheet | |||||
| Total Assets | 5.26B | 4.96B | 4.79B | 4.83B | 4.86B |
| Cash, Cash Equivalents and Short-Term Investments | 38.00M | 18.00M | 12.40M | 16.20M | 23.20M |
| Total Debt | 1.89B | 1.75B | 1.68B | 1.64B | 1.60B |
| Total Liabilities | 2.00B | 1.89B | 1.79B | 1.75B | 1.72B |
| Stockholders Equity | 3.26B | 3.07B | 2.99B | 3.08B | 3.14B |
Cash Flow | |||||
| Free Cash Flow | 142.40M | 174.70M | 169.10M | -25.70M | 141.00M |
| Operating Cash Flow | 142.40M | 174.70M | 169.10M | 169.70M | 146.90M |
| Investing Cash Flow | -78.10M | -66.70M | -53.90M | -49.50M | -905.80M |
| Financing Cash Flow | -44.30M | -102.40M | -119.00M | -127.20M | 534.90M |
HomeCo Daily Needs REIT Technical Analysis
Negative
1.25
Price Trends
1.27
Negative
1.24
Negative
1.25
Negative
Market Momentum
>-0.01
Positive
23.21
Positive
39.66
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 1.25 is below the 20-day moving average (MA) of 1.27, below the 50-day MA of 1.27, and below the 200-day MA of 1.25, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 23.21 is Positive, neither overbought nor oversold. The STOCH value of 39.66 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | AU$2.73B | 8.81 | 10.68% | 6.00% | 24.34% | 131.89% | |
73 Outperform | AU$2.42B | 6.21 | 13.47% | 6.57% | 31.33% | 82.16% | |
72 Outperform | AU$1.61B | 8.33 | 21.02% | 6.30% | -0.79% | 54.01% | |
72 Outperform | AU$370.39M | 6.66 | 16.58% | 7.80% | -5.59% | 43.56% | |
71 Outperform | AU$939.08M | 6.22 | 11.87% | 5.14% | 13.45% | 75.99% | |
68 Neutral | AU$2.41B | 6.28 | 11.96% | 6.88% | 3.75% | 44.09% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
AU:HDN
HomeCo Daily Needs REIT
1.16
-0.08
-6.17%
AU:RGN
Region Group
2.38
0.13
6.01%
AU:CQR
Charter Hall Retail REIT
4.16
0.35
9.19%
AU:WPR
Waypoint REIT Ltd.
2.47
0.06
2.36%
AU:DXC
Dexus Convenience Retail REIT
2.73
-0.13
-4.45%
AU:ARF
Arena REIT
2.30
-1.39
-37.65%
HomeCo Daily Needs REIT Corporate Events
HomeCo Daily Needs REIT Files Updated Corporate Governance Statement with ASX
Aug 13, 2026
HomeCo Daily Needs REIT has lodged its updated corporate governance statement for the year ended 30 June 2026, confirming that the document is current as of that date and has been approved by the board. The REIT has also submitted the required App...
HomeCo Daily Needs REIT Outlines FY26 Update with Emphasis on Risk and Disclosure Limits
Aug 13, 2026
HomeCo Daily Needs REIT has released a presentation summarising its activities and financial information as at 13 August 2026, emphasising that the material is high-level and not a complete basis for investment decisions. The trust highlights that...
HomeCo Daily Needs REIT boosts profit 44% and lifts asset backing
Aug 13, 2026
HomeCo Daily Needs REIT reported a 4% rise in revenue to $379.4 million for the year to 30 June 2026, while profit after tax jumped 44% to $361.6 million, highlighting strong operational performance. Net tangible assets per unit increased to $1.56...
HMC Capital Sets August Timetable for 2026 Full-Year Results and Investor Briefings
Jul 14, 2026
HMC Capital and its associated listed vehicles HomeCo Daily Needs REIT, DigiCo Infrastructure REIT and HealthCo Healthcare Wellness REIT have scheduled the release of their full-year financial results for the period ended 30 June 2026 across four...
HomeCo Daily Needs REIT sets $1.26 DRP issue price for June quarter
Jul 9, 2026
HomeCo Daily Needs REIT has set the issue price for its Distribution Reinvestment Plan at $1.26 per unit for the quarter ended 30 June 2026, in line with previously disclosed plan rules. New DRP units will be issued on or around 21 August 2026 and...
HomeCo Daily Needs REIT Updates Director’s Indirect Unit Holdings
Jun 30, 2026
HomeCo Daily Needs REIT has disclosed changes in director David Di Pilla’s relevant interests in its securities, detailing his indirect holdings through multiple controlled and related entities. The notice confirms no new HDN units were acqu...
HomeCo Daily Needs REIT Seeks ASX Quotation for New Units Under Distribution Plan
May 22, 2026
HomeCo Daily Needs REIT has applied to the ASX for quotation of 1,405,794 fully paid ordinary units, to be issued on 22 May 2026. The new units are being issued under a distribution plan, modestly increasing the REIT’s equity base and unit c...
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.