HomeCo notches 3% gain in property valuations
Make us a preferred source
Make us a preferred source on Google
The news: HomeCo Daily Needs REIT reported a 2.7% increase in its portfolio value over the last six months and reaffirmed its full-year guidance.
The numbers: HomeCo posted an unaudited valuation gain of $131 million for the half-year period to December, comprising a $79 million net valuation gain and $53 million of capital expenditure.
This takes valuations for all its 49 owned properties in the portfolio to $4.94 billion, compared to $4.79 billion in June.
The company also said it maintained a strong balance sheet with gearing at the midpoint of its 30% to 40% target range.
HomeCo declared a distribution of 2.125 cents per unit for the quarter ending 31 December. It reaffirmed its FY25 distribution per unit guidance of 8.5 cents and funds from operations guidance of 8.8 cents per unit.
The context: HomeCo, which owns shopping centres across five Australian states, noted that the result marked the second consecutive period of positive net revaluation gains.
What they said: "[HomeCo]'s portfolio is now benefitting from both positive net operating income growth and cap rate stabilisation, reflecting the attractive investment characteristics of the daily needs asset class," HomeCo fund manager Paul Doherty said.
"[HomeCo]'s point of difference remains our value accretive and tenant-demand led development pipeline, underpinning future growth over the long-term."
The source: ASX announcement
