This article is from the Australian Property Journal archive
THE HomeCo Daily Needs REIT (ASX: HDN) has posted valuation gains of $77 million for the first half of the year.
The June 2024 preliminary unaudited valuation gain represents a circa 2% increase on the December 2023 portfolio value.
This is comprised of a $27 million net valuation gain (up circa 1%), driven by strong net operating income growth, which was partially offset by minor capitalisation rate easing of circa 6bps to 5.64%.
In addition to $50 million of capital expenditure over the first half.
“The positive revaluation gains for the half reflects HDN’s high exposure to defensive and non-cyclical expenditure and megatrends driving tenant and customer demand for our assets,” said Sid Sharma, CEO at HDN.
“Whilst the existing asset base is generating strong underlying net income growth, HDN’s accretive development pipeline continues to create additional value for our unitholders. Our tenant demand led development strategy remains a key focus for HDN and continues to deliver attractive risk adjusted returns.”
HDN has maintained a strong balance sheet over the period, with gearing at the midpoint of the 30%-40% target range.
Back in February, HDN announced $165 million of acquisitions across two brand-new Woolworths-anchored neighbourhood centres in Sydney.
The group has declared distribution of 2.075 cents per unit for the quarter ended 30 June.
HDN has reaffirmed a FY24 DPU guidance of 8.3 cents and a FY24 FFO guidance of 8.6 cents per unit.
