Homeco Daily Needs Reit · ASX:HDN
Homeco Daily Needs Reit — H1 2025 Earnings Presentation
31 slides from Homeco Daily Needs Reit's earnings presentation, Feb 13, 2025
Slide 1: 1H FY25 Results Presentation
1H FY25 Results Presentation 13 February 2025
Slide 2: Acknowledgement of Country
Acknowledgement of Country HomeCo. Daily Needs REIT acknowledges the Traditional Custodians of Country throughout Australia and celebrates their diverse culture and connections to land, sea and community. We pay our respect to their Elders part and present and extended that respect to all Aboriginal
Slide 3: Agenda
Agenda 01 02 03 04 05 06 Results Portfolio Growth Financial Outlook & Supplementary Overview Update Opportunities Results Guidance Information Paul Doherty Sid Sharma Will McMicking HDN Fund Manager HMC Capital Managing Director, HMC Capital Group CFO Real Estate & HDN CEO 3
Slide 4: Results Overview
01 Results Overview 4
Slide 5: 1H FY25 Performance
1H FY25 Performance Strong top line revenue performance driving FFO/unit & DPU growth Financials Operations Growth 4.3 cents 4.3 cents >99% >99% $250m $200m FFO per unit DPU Occupancy3 Rent collection Traditional LFR asset Acquisition of high +1.3% vs. 1H FY24 +2.5% vs. 1H FY24 In-line with FY24 1H
Slide 6: Investment strategy
Investment strategy Owner and developer of strategic last mile infrastructure focused on daily needs & services Model Portfolio Strong Fundamental Accretive Strategic Real Estate Construction investments Development Pipeline Infrastructure Portfolio Target $417/sqm $650m+ ~13m people ~50% ~30% ~20%
Slide 7: Portfolio Update
02 Portfolio Update 7 Williams Landing (VIC)
Slide 8: Property portfolio summary
Property portfolio summary $4.8bn portfolio diversified by subsector, tenant and geography Portfolio Target Tenant mix Rent composition Key portfolio metrics Supermarket Portfolio value $4,819m 40% 11% Landbank (sqm) 2.4m sqm Neighbourhood Site coverage 36% 16% WACR1 5.62% CPI WALE2 4.8 years 40% 20
Slide 9: Highly defensive and diversified income streams
Highly defensive and diversified income streams High quality and diversified portfolio delivering secure and growing cash flow Top 10 tenants – by gross income2 Portfolio subsectors – gross income split and key tenants1 1 7.3% 2 4.5% 40% Neighbourhood 3 3.9% 4 3.9% 2.9% 40% 5 Large format 6 2.6% Ret
Slide 10: Property portfolio summary
Property portfolio summary $4.8bn portfolio diversified by subsector, tenant and geography HDN has a leading strategic network of sites located across metropolitan 48 21% growth corridors Properties1 QLD: $1.1bn Properties1 12 Total portfolio NT Greater Brisbane & 18% Portfolio value $4.8bn Gold Coa
Slide 11: HDN’s model portfolio strategy
HDN’s model portfolio strategy Continuing to execute on re-weighting back to the model portfolio HDN at IPO1 HDN at Aventus Merger HDN today > > 34% 40% 56% Neighbourhood CPI 19% 50% 16% 20% Health & Large Format Services Retail 40% Fixed 25% Significant rebalancing back to model portfolio since mer
Slide 12: Sustainability achievements
Sustainability achievements Implementing HMC Capital’s Sustainability Commitments across our real estate portfolios1 Environment Social Governance On track to exceed FY25 target of 65% of feasible sites to 50% gender diversity maintained for HDN awarded 2025 ESG Regional Top-Rated have solar install
Slide 13: Growth Opportunities
03 Growth Opportunities 13 Lutwyche (QLD)
Slide 14: 1H FY25 Leasing
1H FY25 Leasing Strong rental reversion & affordable portfolio rents underpin long-term outlook for sustainable and non-cyclical income growth Releasing spreads Average portfolio rents1 HDN’s average portfolio rents are ~30% below Australian (Supermarket & Sub HDN continues to generate leading relea
Slide 15: Development projects under construction
Development projects under construction Tenant demand-led development strategies expected to achieve +7% ROIC1 Tuggerah, NSW Castle Hill, NSW Daily Needs + Leisure & Lifestyle expansion on existing excess land Daily Needs + Leisure & Lifestyle expansion within existing centre ~$45m ~11,200sqm 1H FY2
Slide 16: Development projects under construction
Development projects under construction Southlands remixing strategy delivers a 30% valuation gain since acquisition Southlands, WA • The value accretive remix strategy that was identified on acquisition has been implemented • A Speciality Supermarket Operator has opened and underpins a revitalised
Slide 17: FY25 Development commencements
FY25 Development commencements Targeting $100-$120m of pre-committed1 development commencements in FY25 at ~7%+ ROIC2 Armstrong Creek, VIC • Tenant led demand from Woolworths for both a Supermarket and new generation E-Store. Woolworths leases to account for 69% of the GLA • Greater Geelong is the f
Slide 18: FY25 Development commencements (cont.)
FY25 Development commencements (cont.) Targeting $100-$120m of pre-committed1 development commencements in FY25 at ~7%+ ROIC2 Caringbah Childcare Centre & Medical facility development on existing excess land ~$15m 100% ~2,700sqm Capex pre-committed1 Incremental GLA ✓ On track to complete in 2H FY26
Slide 19: Financial Results
04 Financial Results 19 Gregory Hills Town Centre (NSW)
Slide 20: Earnings summary
Earnings summary 1H FY25 FFO of 4.3 cents per unit $ million 1H FY24 1H FY25 – Strong comp NOI Growth of 4.0% driven by positive Property NOI 136.1 142.2 leasing spreads of 6.1%, weighted average rent reviews of 3.6% and active expense management Distribution from equity-accounted investees 1.0 1.3
Slide 21: Balance sheet
Balance sheet Resilient portfolio provides platform for continued asset recycling & organic growth $ million 30 Jun 24 31 Dec 24 – HDN has a robust balance sheet at Dec-24 with net Cash and cash equivalents 12.4 15.4 assets of $3.0bn Assets held for sale 54.0 115.0 – Dec-24 gearing of 36.0% will red
Slide 22: Capital management
Capital management Strong liquidity of $75.3m and 36.0% gearing (reducing to 34.6% pro-forma) $ million 30 Jun 24 31 Dec 24 – Dec-24 gearing of 36.0% will reduce to 34.6% adjusted for Debt summary the post Dec-24 contracted sale of Logan and will be 1,850.0 below the midpoint of the target gearing r
Slide 23: Outlook & Guidance
05 Outlook & Guidance 23 Gregory Hills Home (NSW)
Slide 24: FY25 Outlook and guidance
FY25 Outlook and guidance HDN reaffirms FY25 FFO and DPU guidance of 8.8cpu and 8.5cpu, representing 2.3% growth and 2.4% growth over FY24, respectively 8.8 cents 8.5 cents 4.0% ~$100-120m FY25 development FY25 FFO/unit FY25 DPU Comp NOI growth commencements FY25 Outlook – Strong top-line revenue gr
Slide 25: Supplementary Information
06 Supplementary Information 25 West Ryde (NSW)
Slide 26: Additional financial information
Additional financial information Statutory profit to FFO reconciliation Portfolio value to balance sheet reconciliation $ million 1H FY24 1H FY25 $ million 31 Dec 24 Property income 178.7 178.8 Portfolio valuation 4,818.8 Share of (loss)/profit of equity-accounted investees (0.1) 0.8 Right of use as
Slide 27: Portfolio summary metrics
Portfolio summary metrics Occupancy WALE Asset State GLA (sqm) Site area (sqm) Site Coverage (%)1 Fair Value ($m) Cap rate (%) (by area)2 (by income)3 Operating Armstrong Creek VIC 12,537 59,065 21% 98% 6.3 110 5.20% Bankstown NSW 17,422 40,240 43% 100% 5.5 96 5.75% Belrose NSW 36,816 44,265 83% 100
Slide 28: HDN owns strategic last mile infrastructure
HDN owns strategic last mile infrastructure Strategic footprint spanning 2.4m sqm in Australia’s leading metropolitan markets & growth corridors with 86% of assets located in capital cities Greater Melbourne Greater Sydney Greater Brisbane & Gold Coast Murrindindi Woy Woy Rosenthal Coral Sea Sunshin
Slide 29: Further Information
Further Information Investors and Analysts Media Sid Sharma Andrew Dodds John Frey HMC Capital HMC Capital Corporate communications Managing Director Corporate Finance and HMC Capital Real Estate Investor Relations Manager +61 434 361 318 +61 423 810 851 +61 411 361 361 sid.sharma@hmccapital.com.au
Slide 30: Disclaimer
Disclaimer This presentation (Presentation) has been prepared by HMC Funds Management Limited (ACN 106 078 635, AFSL 237 257) (Responsible Entity) as responsible entity of HomeCo Daily Needs REIT (ARSN 645 086 620). Summary information This Presentation contains summary information about the current
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