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.

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