HomeCo REIT's (ASX:HDN) FY22 profit catapults 971%

Image Source: © Terovesalainen | Megapixl.com

Highlights: 

  • HomeCo REIT announced its full-year FY22 financial results on the ASX today. 
  • The company’s FY22 result reflects that its operations gained momentum in FY22 after recovering from the impacts of COVID-19.
  • HomeCo’s statutory profit for the year stand at AU$335.1 million against AU$31.3 million in 2021, a massive jump of 971%.
  • Also, the company has generated AU$105.6 million as Funds from Operations in the given period, much ahead of its guidance.

Australian real estate firm HomeCo Daily Needs REIT (ASX:HDN) shared financial results for full-year FY22 on the ASX today (18 August 2022). For the period ended on 30 June 2022, the company has registered a huge profit of AU$335.1 million as compared to AU$31.3 million.

The company believes that strategic merger with Aventus supported the results. 

Key highlights of HomeCo’s financial performance in FY22: 

  • HomeCo reported generating AU$105.6 million as Fund from Operations (FFO) in FY22, up by 30% from the previous corresponding period and beyond the company’s FY22 guidance. 
  • The real estate firm’s Distribution Per Unit (DPU) stood at 8.28 cpu in FY22, up by 18% from the previous corresponding period. 
  • In FY22, HomeCo’s pro forma geared by 30.6%, compared to 32.2% in December 2021. Furthermore, the interest rate was hedged by of 73.5% in FY22.  
  • The company reported an NTA/unit of AU$1.52 in June 2022, up by 23% compared to the proforma NTA of AU$1.24 at the merger announcement, driven by strong portfolio valuation gains. 

Key highlights from HomeCo’s operational performance in FY22: 

  • HomeCo reported an occupancy rate of 99% in FY22. 
  • Cash rent collections rose to 99% in FY22.  
  • The company reported a 5.1% growth in its comparable property NOI in FY22. 
  • In FY22 results, HomeCo reported 5.7% positive leasing spreads across 200 leasing deals.

Image source: © Feverpitched | Megapixl.com

 Key highlights from HomeCo’s investments in FY22: 

  • HomeCo’s identified development pipeline increased by over AU$500 million in FY22, including several large-scale opportunities.  
  • The company successfully completed AU$37 million of developments in FY22 with approximately 10% Return on Investment Capital (ROIC).  
  • The real estate firm has also announced development projects worth more than AU$75 million to begin in FY23 with a target ROIC of around 7%.   

HomeCo’s guidance for FY23: 

The commercial real estate managing firm is expecting to deliver a pro forma FFO of 8.6 cpu in FY23. Additionally, HomeCo is also anticipating its DPU to stand at 8.3 cents in FY23, reflecting a payout ratio of 97% in the given financial year. 

The share price performance of HomeCo on the ASX: 

HomeCo shares opened trading in red today. The share price of HomeCo was quoted at AU$1.277 per share, down 3.219% at 2:15 PM AEST on the ASX today (18 August).

In last 12 months, HomeCo’s share price has fallen by 11.64% on the ASX. On the other hand, HomeCo’s YTD-based share price fell by 17.31% (as of 11:36 PM AEST on the ASX today).  


 


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