Fund Manager Summary
HomeCo Daily Needs REIT (ASX:HDN) is positioned as a resilient investment opportunity, with a recent share price of approximately $1.36 offering a distribution yield exceeding 6%. Fund managers highlight that the REIT benefits from a stable tenant mix, anchored primarily by major supermarkets like Coles and Woolworths, ensuring consistent rental income even in challenging economic conditions. Recent stabilisation in long-term bond yields has led to an appreciation in REIT valuations, reinforcing the appeal of HDN as a lower-risk alternative for yield-seeking investors, especially as hybrid securities lose traction. However, the stock currently trades below its net tangible asset backing, prompting some caution amid increasing demand for retail assets. While occupancy rates and rental growth remain strong, the overall market pressures and interest rate environment are considerations for potential investors.
Source: Trading View
Commentary From The Managers
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Thesis Tracker gives investors direct access to professional fund-manager commentary on ASX-listed companies, all in one structured database.
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By reporting on thousands of qualitative investment insights, Thesis Tracker helps investors make better decisions beyond just financial metrics.
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Trusted by active, Retail and Professional ASX investors, Thesis Tracker saves research time by surfacing institutional-grade perspectives that are difficult to find elsewhere.
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Share Price
Summary
Date
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Thesis Tracker gives investors direct access to professional fund-manager commentary on ASX-listed companies, all in one structured database.
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By reporting on thousands of qualitative investment insights, Thesis Tracker helps investors make better decisions beyond just financial metrics.
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Trusted by active, Retail and Professional ASX investors, Thesis Tracker saves research time by surfacing institutional-grade perspectives that are difficult to find elsewhere.
Updates are made available to members within 12 hours of being released. The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Auscap Asset Management
9 Oct 2025
$1.36
Summary
- Auscap Asset Management highlights that many may not recognize HomeCo Daily Needs REIT, but its signage is familiar at home-focused retail shopping centres.
- HomeCo Daily Needs REIT owns a selection of large format retail and neighbourhood shopping centres.
- The company is yielding over 6 percent, with expectations for growth exceeding 4 percent per annum.
- The stock is currently trading below its net tangible asset backing, which is viewed as conservative in the current environment.
- With interest rates decreasing and increasing demand for retail shopping assets, Auscap sees potential for further appreciation.
- As hybrids are phased out, retail investors seeking yield may consider HomeCo Daily Needs REIT as a viable alternative.
- The REIT pays quarterly dividends, and there is perceived upside in capital growth.
Auscap Asset Management
24 Sept 2025
$1.38
Summary
- Auscap Asset Management notes that HomeCo Daily Needs REIT (HDN) share price has performed well in October, increasing by 11%.
- Currently, HDN trades at a 6.5% distribution yield.
- The recovery in REIT valuations is attributed to the stabilisation of long-term bond yields.
- Previously, REITs faced heavy sell-offs due to rising long-term interest rates.
- As bond yields peaked, valuations began to recover.
- HomeCo's portfolio is considered resilient, primarily anchored by supermarkets like Coles and Woolworths.
- This supermarket anchoring provides stable rental income across various economic conditions.
- High occupancy rates and consistent rental growth contribute to its appeal.
- The balance sheet is strong, enhancing the investment case.
- The combination of reasonable valuation, high distribution yield, and stable fundamentals makes HDN an attractive holding.
- Vertium holds a significant position in HDN, recognizing it as a dependable REIT with defensive cashflows.
Cooper Investors
30 Sept 2024
$1.25
Summary
- Cooper Investors has increased its position in HomeCo Daily Needs REIT (HDN).
- HDN aligns with key objectives of balancing returns and downside protection.
- HDN exhibits VOF attributes: Stalwarts, Asset Plays, and Improving Operating Trends.
- Investment reflects confidence in HDN's performance during the current economic cycle.
The completeness, accuracy or current status of the investments referenced are not guaranteed.
Frequently Asked Questions
Who is investing in HomeCo Daily Needs REIT (ASX:HDN)?
Fund managers including Cooper Investors and Auscap Asset Management have invested in HomeCo Daily Needs REIT (ASX:HDN).
Why do fund managers invest in HomeCo Daily Needs REIT?
Fund managers invest in HomeCo Daily Needs REIT due to its stable portfolio of large format and neighborhood shopping centers, primarily anchored by supermarkets like Coles and Woolworths, which provide consistent rental income. The REIT offers a distribution yield exceeding 6%, with expectations for growth over 4% per annum. Its current trading price is below net tangible asset backing, indicating potential value. With high occupancy rates and a strong balance sheet, it presents a favorable risk/reward profile amidst stabilizing interest rates.
What happened to HomeCo Daily Needs REIT (ASX:HDN)?
Fund managers are investing in HomeCo Daily Needs REIT due to its strong fundamentals and attractive valuation. The REIT offers a distribution yield of over 6%, with expectations for growth exceeding 4% per annum. Its portfolio, anchored by resilient tenants like Coles and Woolworths, ensures stable rental income and high occupancy rates. Furthermore, the stock trades below its net tangible asset value, presenting a conservative investment opportunity as interest rates decline and retail demand rises. The combination of dependable cash flows, quarterly dividends, and significant upside potential makes HomeCo an appealing choice for yield-seeking investors.
What is the short interest in HomeCo Daily Needs REIT (ASX:HDN)?
The short interest in HomeCo Daily Needs REIT (ASX:HDN) is 0.64% which makes it the 255th most shorted stock on the ASX. Of the 2.1B shares that HomeCo Daily Needs REIT has on issue, 13.4M have been sold short.
What does HomeCo Daily Needs REIT (ASX:HDN) do?
HomeCo Daily Needs REIT is a real estate investment trust that invests in convenience-based retail properties. It focuses on neighborhood retail, large format retail, and health and services assets. The company aims to provide stable income and capital growth for its unit holders. Founded in November 2020, it is headquartered in Sydney, Australia.