HomeCo Daily Needs REIT has reported a preliminary unaudited valuation gain of $219 million for the December quarter. This represents a 4.5 per cent increase compared to June levels. The gains were attributed to net operating income growth and a 5 basis point tightening in capitalisation rates, which now stand at 5.51 per cent. HomeCo Daily Needs REIT owns and manages a portfolio of convenience-based assets across Australia, focusing on daily needs and services. The company aims to provide sustainable and growing income for its investors through its diversified property portfolio.
The trust successfully refinanced $810 million of debt, originally due in July 2026, extending the maturity date to July 2028. This refinancing also secured a 42.5 basis point improvement in margin. The company also reported that approximately 70 per cent of its debt is hedged until December 2026. Gearing for the REIT remains at the midpoint of its target range of 30–40 per cent.
For the December quarter, HomeCo Daily Needs REIT declared a distribution of 2.15 cents per unit. The fund reaffirmed its fiscal year 2026 guidance, projecting a distribution per unit (DPU) of 8.6 cents and funds from operations (FFO) per unit of 9.0 cents. The preliminary portfolio value has risen to $5.095 billion, reflecting net valuation gains of $143 million after accounting for disposals and capital expenditure.
