HomeCo Daily Needs REIT trebles full-year profit
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The news: HMC Capital’s listed fund HomeCo Daily Needs REIT delivered a 205% jump in full-year net profit after tax as funds from operations (FFO) and distributions hit the company's annual guidance.
The numbers: Net profit after tax came in at $250.3 million for the 2025 financial year, compared to the $82 million reported a year earlier.
The market estimate consensus for net profit after tax was $335.5 million, according to Visible Alpha data.
Revenue was $365.7 million, up 3% from the $356.1 million reported in the prior year. FFO came in at $182.5 million, or 8.8 cents per share, a 2.3% uptick from $178.1 million and 8.6 cents in the previous year. Distributions per unit (DPU) came in at 8.5 cents, compared to 8.3 cents in the previous year.
FFO and DPU both met HomeCo's full-year guidance. The company has guided FFO of 8.8 cents per unit, and DPU of 8.6 cents per unit in FY26, reflecting growth of 2.3% and 1.2% over FY25 respectively.
The context: HomeCo, which owns and manages shopping centres across Australia, said the result reflects the company's strategically located metropolitan assets, which have limited exposure to cyclical and discretionary retail expenditure.
"The unique portfolio composition and location along with continued delivery of our development pipeline continues to differentiate [HomeCo] in the Australian real estate sector and support earnings growth going forward," the company said in the earnings release.
