HomeCo Daily Needs REIT (HDN) AI Stock Analysis

• Market Cap: AU$2.61B
• Dividend Yield: 6.8%
• Average Volume (3M): 3.86M
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.69
• Revenue Growth: -1.08%
• EPS Growth: N/A
• Country: AU
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 66
• Industry: REIT - Retail
• EPS (TTM): 0.06
• Shares Outstanding: 2,086,214,800
• 10 Day Avg. Volume: 3,113,448
• 30 Day Avg. Volume: 3,861,723
• PEG Ratio: 0.08
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.20
• 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$1.37
• Price Target Upside: 9.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 69 Neutral
• 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 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 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 Money

HomeCo 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

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

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

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.

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

HomeCo Daily Needs REIT Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.25
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HDN	69 Neutral	AU$2.61B	12.51	6.98%	6.80%	-1.08%	―
Sector *	54 Neutral	$1.23B	3.78	0.67%	6.14%	-2.39%	-129.28%
SCPAF	―	$1.72B	22.34	4.80%	4.26%	―	―
MQV	―	€1.23B	11.92	6.37%	6.56%	―	―
BWP	74 Outperform	AU$2.50B	8.60	10.93%	5.33%	19.08%	―
HMC	65 Neutral	AU$1.50B	6.57	15.75%	3.24%	107.77%	257.12%
DXC	63 Neutral	AU$409.14M	20.64	4.00%	6.95%	-0.80%	―

HomeCo Daily Needs REIT Corporate Events

HMC Capital Schedules Release of 2025 Full-Year Financial Results

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

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

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

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

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.