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Highlights

  • HomeCo Daily Needs is an ASX-listed real estate investment trust
  • In 1HFY24, the company reported 7% YoY increase in its revenue to AUD 179 million
  • Di Pilla (David) has the highest stake in the company with a shareholding of 13.55%

Australia-based HomeCo Daily Needs REIT (ASX: HDN) is a real estate investment trust with a mandate to invest in convenience-based assets in the target sub-sectors of health & services, large format retail and neighbourhood retail.

In the first half of the financial year 2024 (1HFY24), the company posted 7% YoY rise in revenue to AUD 179 million and 6.7% YoY increase in EBITDA to AUD 121.4 million. During the reported period, loss after tax stood at AUD 10.7 million.

In 1HFY24, properties of the company continued to perform well, with cash collection and occupancy rate consistently above 99%. This resulted in surge in rental rates when properties were re-leased, averaging 6.4%. These outcomes were underpinned by the focus on locations in cities, national tenants, and service and retail sectors that are less affected by economic cycles.  

Top 10 shareholders of HDN

The top 10 shareholders of HDN have around 34.64% shareholding in the company, while the top four have 24.85% of the shareholding. Di Pilla (David) has the highest stake in the company with a holding of 13.55%, followed by Vanguard Investments Australia Ltd. with a holding of 5.05%.

Recent business update

Through an ASX-filing dated 7 June 2024, the company informed that in June 2024, the initial unaudited valuation gain reached AUD 77 million, representing 2% surge over the value of portfolio in December 2023. The gain comprises AUD 27 million increase in net valuation.

The group has maintained healthy balance sheet with debt levels falling in the middle of the target range of 30-40%.

Outlook

In FY24, the company expects to deliver distribution per unit of 8.3 cents as mentioned previously. Further, during the stated period, the anticipated funds from operations stand at 8.6 cents per unit.

On the back of tenant demand in 2HFY24, the company expects to conclude around AUD 70 million worth of development projects, which are forecasted to achieve a cash-on-cash return of nearly 7%.

Moreover, the company has numerous projects in pipeline which are expected to commence in the latter part of FY24, targeting for more than AUD120 million in total commencements.

Share performance of HDN

HDN shares closed 1.63% higher at AUD 1.245 on 25 June 2025. HDN’s share price has increased by 8.73% in the last one year and has recorded a fall of 2.35% in the last three months.

The 52-week high of HDN is AUD 1.315, recorded on 15 March 2024 and the 52-week low is AUD 1.028, recorded on 30 October 2023.

HDN Daily Technical Chart, Source: REFINITIV

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 25 June 2024. The reference data in this report has been partly sourced from REFINITIV.