Yesterday, Region Group Ltd (ASX: RGN) held its annual general meeting (AGM), where its FY25 result was discussed.
What did Region Group report in FY25?
- FFO of 15.5 cents per security, up from 15.4 cents in FY24
- Adjusted FFO (AFFO) of 13.7 cents per security, up from 13.6 cents in FY24
- Distribution of $159.1 million, equating to 13.7 cents per security (100% of AFFO)
- Statutory profit after tax of $212.5 million, up from $17.3 million last year
- Assets Under Management of $5.2 billion, an 8.7% increase on FY24
- Net Tangible Asset (NTA) per security increased to $2.47
What else do investors need to know?
Region Group's portfolio now spans 100 retail properties, anchored heavily by major supermarkets like Woolworths and Coles. The business reported comparable net operating income growth of 3.2% thanks to strong leasing and expense management.
During FY25, Region acquired a new neighbourhood centre, divested non-core assets, and invested $75 million into portfolio developments, sustainability projects, and value creation opportunities. Occupancy remains high at 97.5%, with the majority of expiring tenants retained.
What's next for Region Group?
Looking forward, Region Group plans to drive sustainable earnings by maintaining strong leasing performance, increasing fixed rent reviews, and focusing on expense management. Management aims to strategically grow the portfolio through selective acquisitions and divestments while continuing capital management initiatives such as the ongoing security buy-back.
Assuming market conditions remain steady, the company has reaffirmed FY26 guidance for at least 15.9 cents per security in FFO and 14.0 cents per security in AFFO.
Region Group share price snapshot
Over the past 12 months, the Region Group shares have increased 7%, running slightly behind the S&P/ASX 200 Index (ASX: XJO) which has increased 8% over the same period.
