HomeCo Daily Needs REIT delivers against FY22 guidance following merger with Aventus
Today’s result underscores the strong strategic rationale for the transformational merger with Aventus Group and the significant progress being made to capitalise on HDN’s enhanced growth pipeline following the merger.
HDN delivered FY22 FFO of 8.85 cpu, a 30% increase on FY21 and ahead of our February guidance. The June 22 NTA of $1.52 was up by 23% from the proforma NTA announced at merger, underpinned by strong portfolio valuation gains. The portfolio continues to perform strongly with >99% occupancy, maintained 99% cash collection, strong leasing spreads of 5.7%, and comp NOI growth of 5.1%.
HDN Chair, Simon Shakesheff said, “Today’s result builds on HDN’s strong track record since listing in November 2020 and delivers against the REIT’s core objective to provide stable and growing distributions notwithstanding increased macroeconomic volatility since the beginning of the year. The transformational merger with Aventus has been successfully integrated and the management team has maintained strong operational momentum.”
HDN CEO, Sid Sharma said, “The portfolio recorded strong valuation gains of $203m over 2H FY22 which underscores the growing demand for daily needs assets from both private and increasingly, institutional investors. Investors remain attracted to high quality daily needs assets offering defensive income streams underpinned by attractive long-term megatrends. As we move into FY23, HDN is well positioned with pro forma gearing of 30.6% which is at the bottom end of our 30-40% target gearing range. The REIT is in a strong position to fund its accretive development pipeline and capitalise on attractive acquisition opportunities which may emerge with ongoing macroeconomic uncertainty and market volatility.”
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