Highlights

  • Consensus rating of Buy from 11 analysts: 4 Buy or equivalent, 6 Hold, 1 Sell or equivalent.
  • Mean price target of A$2.51 against a share price of A$2.20 on 8 October 2026, an implied upside of 14.0%.
  • Analyst targets range from A$2.24 to A$2.68.
  • Statutory net profit after tax was $268.8 million, Funds From Operations (FFO) were 16.0 cents per security, up 3.2%, and adjusted FFO (AFFO) was 14.1 cents per security, up 2.9%, with 100% distributed to security holders.

Region Group (ASX:RGN) carries a consensus analyst rating of Buy. Of the 11 analyst recommendations recorded, 4 are Buy or equivalent, 6 are Hold and 1 is Sell or equivalent. The mean price target is A$2.51, with targets ranging from A$2.24 to A$2.68, against a current share price of A$2.20 (8 October 2026). Region Group is an Australian real estate group that owns and manages an essential retail portfolio, including supermarket-anchored centres.

Company name

Region Group

Ticker

(ASX:RGN)

Exchange

ASX (Australian Securities Exchange)

Current share price

A$2.20

Price date

8 October 2026

Number of analysts

11

Rating consensus

Buy

Consensus price target (mean)

A$2.51

Highest target

A$2.68

Lowest target

A$2.24

Implied upside/downside to mean target

Implied upside of 14.0%

Latest developments

Region Group (ASX:RGN) announced its FY26 results for the year ended 30 June 2026 on 17 August 2026. Statutory net profit after tax was $268.8 million, funds from operations (FFO) were 16.0 cents per security, up 3.2%, and adjusted FFO (AFFO) was 14.1 cents per security, up 2.9%, with 100% distributed to security holders. NTA was $2.57 per security, up 4.0%. The company refinanced over $1 billion of Debt at improved borrowing margins, with a weighted average cost of debt of 4.5% and 100% of debt hedged or fixed at an average rate of 2.9% before margin.

Comparable net Operating Income growth was 3.3%, and comparable moving annual turnover growth was 3.3%, driven by supermarket growth of 4.1%. In total, 58% of supermarkets were generating turnover rent, with a further 15% within 10% of the turnover rent threshold. The company completed 380 specialty leases at average leasing spreads of 4.0% and average annual rent increases of 4.4%, with new Lease terms averaging 6.3 years. Occupancy was 98.1%, compared with 97.5%. The security holder return over the year was 9.8%.

The company said pro forma gearing is below the midpoint of its 30% to 40% target range, with over $200 million of undrawn debt capacity. FY27 guidance is for FFO growth of 3.0% to 16.5 cents per security and AFFO growth of 3.0% to 14.5 cents per security, with a Payout Ratio of about 100% of AFFO, assuming no significant change in market conditions.

Risks and what to watch

FY27 guidance assumes no significant change in market conditions, and the distribution payout of about 100% of AFFO links distributions closely to earnings. Earnings depend on tenant sales, leasing outcomes, interest rates and property valuations. The company's debt costs include margins on refinanced facilities, and its portfolio is concentrated in essential retail.

Next milestones

Items to watch include delivery of FY27 FFO guidance of 16.5 cents and AFFO of 14.5 cents per security, supermarket turnover rent progress, leasing spreads, the Metro Fund Partnership and gearing relative to the 30% to 40% range.