Fund Manager Summary
The fund managers believe that the outlook for HomeCo Daily Needs REIT remains positive, presenting a compelling opportunity for investors. In their opinion, the current share price of approximately $1.25 reflects a favorable entry point, particularly as the fund has increased its position. They highlight that HDN exhibits volatility of fundamentals (VOF) attributes, including Stalwarts, Asset Plays, and Improving Operating Trends, which align with their strategy of balancing returns and downside protection. This strategic positioning suggests a confidence in the REIT's resilience and potential for growth in the prevailing economic environment.
Source: Trading View
Commentary From The Managers
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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.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Auscap Asset Management
24 Sept 2025
$1.38
- 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.
Summary
Cooper Investors
30 Sept 2024
$1.25
- 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.
Summary
Auscap Asset Management
9/10/25
$1.36
- 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.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"In a landscape where balancing returns with downside protection is paramount, increasing our stake in HomeCo Daily Needs REIT seems to align well with our strategy, showcasing potential as a stalwart amidst evolving market dynamics."
Last Updated: 09 Oct 2025
Query The Data
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 strong balance of returns and downside protection. The REIT exhibits valuable characteristics such as stability, asset potential, and improving operational trends, making it an attractive option in the current economic climate.
What happened to HomeCo Daily Needs REIT (ASX:HDN)?
Fund managers are investing in HomeCo Daily Needs REIT due to its attractive yield of over 6%, expected annual growth of more than 4%, and strong fundamentals. The REIT's portfolio, anchored by major supermarkets, offers stable rental income and high occupancy rates. With the stock trading below its net tangible asset backing and favorable market conditions, it presents a compelling alternative for yield-seeking investors.