Region Group (RGN) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you very much and welcome to our first half FY26 results for Region Group. My name is Anthony Mellows. I'm the Chief Executive Officer. Presenting these results with me today is David Salmon, our Chief Financial Officer. Also in the room with me is Erica Rees, our Chief Operating Officer. I'm really pleased with this set of results. We have increased our earnings growth, which is underpinned by some really strong operational results and our fully hedged interest position. Let me take you to slide four, which sets out our first half FY26 highlights. Our funds from operations or FFO was 7.9 cents per security, which increased by 3.9% from December 2024. The distribution per security was 6.9 cents per security, which was the same as our adjusted funds from operation, or AFFO, which increased by 3% from December 2024. Our statutory net profit after tax of $180 million, including an increase in the fair value of our investment properties. Our assets under management has increased by 3.9% from June 25 to $5.4 billion. Our operational metrics remained resilient. Our comparable MAT growth was 3.1% per annum. Our average annual fixed rent reviews were 4.3% per annum. Our average specialty leasing spreads were 3.4% and our comparable NOI growth was 3.7%. With respect to capital management, our weighted average cap rate had firmed by 10 basis points to 5.87% since June 25. We've continued the on-market security buyback program. 6.7 million securities have been purchased during the half year at an average price of $2.39, for a consideration of around $16 million. And our NTA per security has increased 3.6% to $2.56, off the back of that valuation growth. Our weighted average cost of debt of 4.6% per annum, with 100% of debt hedged or fixed for FY26 at an average rate of 2....