Full Year 2024 HomeCo Daily Needs REIT Earnings Call Transcript
Key Points
- HomeCo Daily Needs REIT (ASX:HDN) maintained a high occupancy rate of over 99% since IPO.
- The company achieved sector-leading cash collections at 99% since IPO.
- Leasing spreads were consistently strong, with over 6% for the FY24 period.
- The development pipeline has grown to over $700 million, indicating future growth potential.
- The company maintained a conservative balance sheet with gearing at the midpoint of the target range.
- Net tangible assets (NTA) per unit saw a modest 3% reduction versus June '23.
- Higher interest expenses offset the property net income growth of 4% in FY24.
- The company had to adjust its development commencements to $85 million, below the targeted $120 million.
- There is a potential risk of income drag or loss of income from capital expenditures.
- The cost of debt is expected to be around 4.5%, which could impact future profitability.
Good morning, everyone, and thank you for attending today's conference call. Joining me on the call today is HMC Group CFO, Will McMicking; and HCM Fund Manager, Paul Doherty. Before we commence today's presentation, we want to acknowledge the traditional custodians of country throughout Australia.
We celebrate their diverse culture and connections to land, sea and community. We pay our respects to elders, past, present and emerging and extend our respect to all Aboriginal and Torres Strait Islander people today.
Let's begin on slide 4. As many of you that have been following the HomeCo Daily Needs story know, HomeCo Daily Needs REIT is approaching 4 years since IPO. We are proud of its continued resilient performance and growth.
The HomeCo Daily Needs REIT focuses on assets that provide convenient essentials for local communities along with last mile solutions for our retailers. We always set out to say what we're going to do and then deliver what we say. Today is no different.
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