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HomeCo Daily Needs REIT (AU:HDN)
ASX:HDN
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HomeCo Daily Needs REIT (HDN) AI Stock Analysis

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AU:HDN

HomeCo Daily Needs REIT

(Sydney:HDN)

Rating:69Neutral
Price Target:
AU$1.50
▲(20.00%Upside)
The overall score is driven primarily by strong financial performance and appealing valuation metrics. Despite declining revenue and net income, solid operational margins, a stable balance sheet, and improved cash flow position enhance the company's financial health. The technical analysis reflects a neutral market sentiment, neither strongly bullish nor bearish.

HomeCo Daily Needs REIT (HDN) vs. iShares MSCI Australia ETF (EWA)

HomeCo Daily Needs REIT Business Overview & Revenue Model

Company DescriptionHomeCo 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 Daily Needs REIT aims to provide unitholders with consistent and growing distributions. HomeCo Daily Needs REIT(ASX:HDN) operates independently of Home Consortium Limited as of December 31, 2020.
How the Company Makes MoneyHomeCo Daily Needs REIT generates revenue primarily through the rental income derived from its portfolio of properties. These properties are leased to a diverse range of tenants, including major supermarket chains, healthcare providers, and service station operators. HDN benefits from long-term lease agreements that provide stable and predictable cash flows. Additionally, the company seeks to enhance its earnings through strategic property acquisitions, development, and asset management initiatives that increase the value and rental potential of its portfolio. Partnerships with key retail and service brands also contribute to its revenue stability and growth.

HomeCo Daily Needs REIT Financial Statement Overview

Summary
HomeCo Daily Needs REIT shows robust operational margins and a stable balance sheet, despite declining revenue and net income. Improved cash flow indicates strong cash management, with effective cost and debt management maintaining financial stability.
Income Statement
65
Positive
The company shows a declining revenue trend with a negative revenue growth rate of -5.18% from 2023 to 2024. The gross profit margin is solid at 65.32%, indicating efficient cost management. However, the net profit margin decreased to 24.86%, reflecting lower profitability. The EBIT and EBITDA margins remain strong at 64.11% and 63.68%, respectively, suggesting robust operational performance.
Balance Sheet
70
Positive
The balance sheet is stable with a moderate debt-to-equity ratio of 0.56, indicating a balanced leverage position. The equity ratio stands at 62.54%, showing strong equity financing. Return on equity is relatively low at 2.74%, reflecting moderate returns on shareholders' investments. Overall, the balance sheet is healthy with manageable debt levels.
Cash Flow
75
Positive
The cash flow statement shows a significant improvement in free cash flow, which turned positive in 2024, indicating better cash management. The operating cash flow to net income ratio is 2.06, reflecting efficient cash conversion from profits. The free cash flow to net income ratio is 2.06, highlighting strong cash generation relative to profits.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021
Income Statement
Total Revenue355.40M347.80M198.30M45.20M
Gross Profit241.00M240.10M135.90M28.50M
EBITDA210.00M238.80M358.10M27.20M
Net Income82.00M102.20M335.10M31.30M
Balance Sheet
Total Assets4.79B4.83B4.86B1.39B
Cash, Cash Equivalents and Short-Term Investments12.40M16.20M23.20M249.50M
Total Debt1.68B1.64B1.60B425.80M
Total Liabilities1.79B1.75B1.72B457.30M
Stockholders Equity2.99B3.08B3.14B933.10M
Cash Flow
Free Cash Flow169.10M-25.70M141.00M22.90M
Operating Cash Flow169.10M169.70M146.90M22.90M
Investing Cash Flow-53.90M-49.50M-905.80M-722.00M
Financing Cash Flow-119.00M-127.20M534.90M948.60M

HomeCo Daily Needs REIT Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.25
Price Trends
50DMA
1.26
Negative
100DMA
1.22
Positive
200DMA
1.19
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
46.19
Neutral
STOCH
61.90
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 1.26, below the 50-day MA of 1.26, and above the 200-day MA of 1.19, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.19 is Neutral, neither overbought nor oversold. The STOCH value of 61.90 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

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
AU$2.61B12.516.98%6.80%-1.08%
54
Neutral
$1.23B3.780.67%6.14%-2.39%-129.28%
$1.72B22.344.80%4.26%
€1.23B11.926.37%6.56%
74
Outperform
AU$2.50B8.6010.93%5.33%19.08%
65
Neutral
AU$1.50B6.5715.75%3.24%107.77%257.12%
63
Neutral
AU$409.14M20.644.00%6.95%-0.80%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:HDN
HomeCo Daily Needs REIT
1.25
0.11
9.65%
SCPAF
Shopping Centres Australasia Property Group RE
1.68
-0.21
-11.11%
DE:MQV
Charter Hall Retail REIT
2.08
0.24
13.04%
AU:DXC
Dexus Convenience Retail REIT
2.97
0.42
16.47%
AU:BWP
BWP Trust
3.50
0.16
4.79%
AU:HMC
Home Consortium Ltd
3.70
-4.00
-51.95%

HomeCo Daily Needs REIT Corporate Events

HMC Capital Schedules Release of 2025 Full-Year Financial Results
Jul 16, 2025

HMC Capital has announced the release dates for the full-year financial results for its entities, including HomeCo Daily Needs REIT, DigiCo Infrastructure REIT, and HealthCo Healthcare & Wellness REIT, scheduled between August 14 and August 19, 2025. This announcement is significant as it provides stakeholders with a timeline for financial disclosures, which could impact investor decisions and market positioning for these entities.

The most recent analyst rating on (AU:HDN) stock is a Hold with a A$1.40 price target. To see the full list of analyst forecasts on HomeCo Daily Needs REIT stock, see the AU:HDN Stock Forecast page.

HomeCo Daily Needs REIT Announces Quarterly Distribution
Jun 18, 2025

HomeCo Daily Needs REIT has announced a new distribution for its ordinary units, with a payment of AUD 0.02125 per unit. The distribution is for the quarter ending June 30, 2025, with the payment scheduled for August 22, 2025. This announcement reflects the company’s ongoing commitment to providing returns to its investors, potentially enhancing its attractiveness in the REIT market.

The most recent analyst rating on (AU:HDN) stock is a Buy with a A$1.40 price target. To see the full list of analyst forecasts on HomeCo Daily Needs REIT stock, see the AU:HDN Stock Forecast page.

HomeCo Daily Needs REIT Achieves $142 Million Valuation Gain
Jun 18, 2025

HomeCo Daily Needs REIT has reported a preliminary unaudited valuation gain of $142 million, marking a 3.0% increase in portfolio value as of 30 June 2025 compared to the end of 2024. This growth is attributed to strong net operating income and capital expenditure on developments, alongside a slight tightening of the capitalization rate. The REIT has maintained a robust balance sheet with gearing within its target range and confirmed its distribution and funds from operations guidance for the fiscal year 2025, indicating stable financial health and potential for continued investor returns.

The most recent analyst rating on (AU:HDN) stock is a Buy with a A$1.40 price target. To see the full list of analyst forecasts on HomeCo Daily Needs REIT stock, see the AU:HDN Stock Forecast page.

HomeCo Daily Needs REIT Issues New Securities on ASX
May 22, 2025

HomeCo Daily Needs REIT has announced the issuance of 1,115,936 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, potentially enhancing the company’s liquidity and market presence, and offering stakeholders an opportunity to participate in the company’s growth.

The most recent analyst rating on (AU:HDN) stock is a Buy with a A$1.40 price target. To see the full list of analyst forecasts on HomeCo Daily Needs REIT stock, see the AU:HDN Stock Forecast page.

HomeCo Daily Needs REIT Announces Quarterly Fund Payment
May 20, 2025

HomeCo Daily Needs REIT announced a fund payment notice for the quarter ending March 31, 2025, with a total cash distribution rate of 2.125 cents per unit. The distribution includes taxable income and capital gains components, and the REIT intends to operate as an attribution managed investment trust for the fiscal year ending June 30, 2025. This announcement underscores HDN’s commitment to providing consistent returns to its investors and highlights its strategic positioning in the Australian real estate market.

The most recent analyst rating on (AU:HDN) stock is a Buy with a A$1.40 price target. To see the full list of analyst forecasts on HomeCo Daily Needs REIT stock, see the AU:HDN Stock Forecast page.

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.Date of analysis: Jul 26, 2025