HomeCo Daily Needs REIT reaffirms FY26 guidance

HomeCo Daily Needs REIT (ASX:HDN) has reaffirmed its full-year 2026 guidance following a resilient first-half performance, thanks to steady income growth and rising asset values.

For the six months ended Dec. 31, 2025, the retail landlord reported funds from operations of 4.4 cents per unit, a slight uptick from the 4.3 cents recorded in the prior corresponding period.

The distribution per unit remained stable at 4.3 cents.

The REIT’s balance sheet showed increased strength, with net tangible assets climbing 5.4% since June 2025 to reach $1.55 per unit.

The growth was supported by a robust interest rate hedging position of 70.5%, providing a buffer against market volatility.

Management confirmed it remains on track to meet its FY26 FFO guidance of 9.0 cents and a distribution target of 8.6 cents per unit.

"This is the fourth consecutive period of positive valuation gains," said HomeCo CEO Sid Sharma. "This reflects the inherent strength of our strategically located metropolitan portfolio and the defensive nature of daily needs retail."

At the time of reporting, HomeCo Daily Needs REIT's share price was $1.29.