HomeCo Keysborough Vic
HomeCo Keysborough, Victoria. Photo – HomeCo.
  • ASX-listed HomeCo Daily Needs REIT (ASX: HDN) has raised earnings guidance by 9%
  • A year-end distribution of 4.5 cents was reaffirmed, fully covered
  • 98.7% occupancy rate, 19% increase in foot traffic and 1.6 million visits per month

Newly ASX-listed HomeCo Daily Needs REIT (ASX: HDN) saw its share price return to its December 2020 IPO level today as it announced improved earnings guidance.

The real estate investment trust (REIT) made a net loss of $22.2M, mainly caused by ASX listing costs and property acquisitions.

REITs tend to quote ‘funds from operations’ (FFO) in order to describe how they are performing cash-wise. FFO adds depreciation and amortisation to earnings (net income) and then subtracts any gains from sales.

HomeCo invests in convenience-based assets such as neighbourhood retail stores, large format retail and health and services. Anchor tenants typically include Spudshed, Chemist Warehouse, Spotlight, Aldi and Bunnings.

Their updated guidance of $20.5 million FFO released to the ASX included a 9% improvement to their financial year 2021 of $18.85 million. A year-end distribution of 4.5 cents was reaffirmed, fully covered, barring any “unforeseen circumstances or further extended COVID-19 lockdowns and government-mandated restrictions.”

Across their 17 properties, they reported a 98.7% occupancy rate and a 19% increase in foot traffic with 1.6 million visits per month across December and January.

As of the time of publication, the share price was $1.34, back to its initial public offering (IPO) price in November 2020.

You May Also Like

“Sydney setting the pace”: CBD office rents march higher

Cushman & Wakefield’s quarterly Office Marketbeat reveals 2.9% quarter-on-quarter uplift in Sydney

Canberra office market shows impressive resilience and growth

The market is underpinned by low vacancy, large developments in the pipeline and strong rental growth

Federal Government renews $67.5 million funding for homelessness services

Over 200 support staff in Victoria to continue their crucial work, with $23.5 million allocated for their wages

Accenture and Lendlease to expand data insights platform

The platform which uses AI and virtual reality will be expanded to increase digital and in-store visits.

Top Articles

PropertyGuru Asia Property Awards (Australia) returns for its 7th edition, including several brand new award ...

This year's awards include several brand new categories, with entries closing 2 August 2024.

Housing crisis survival guide: How to buy your first Australian property

Three property experts give the low down on how to nab a home in this tough housing market.

Strata properties as investments: All you need to know about investing in a Perth unit

As the cost of renting approaches the cost of a mortgage, more people are investing in units to escape the rental trap.