REA Group Ltd (ASX: REA) has boosted its final dividend payout by 25% after reporting net profit from core continuing operations of $682.1 million, up 14%.
But the operator of Realestate.com.au has warned that new national buy listings are expected to be "flat to down low single digits" in FY27, owing to higher-than-expected listings in the last quarter of FY26.
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Solid results from REA Group
For the full year, REA Group posted revenue of $1,793 million, up 7% on the prior year, with operating expenses flat.
Net profit came in at $552 million, down 19%, "largely reflecting the $111m impairment of REA India in FY26 and $117m reversal of impairment on sale of PropertyGuru in FY25''.
The $682.1 million net profit figure was calculated excluding the impact of REA India.
REA Group will pay a final dividend of $1.73 per share to shareholders on the register on 27 August, with the dividend to be paid on 11 September.
REA Group to be an AI winner
REA Group Chief Executive Officer Cameron McIntyre said it was an "excellent" performance underpinned by double-digit yield growth.
Mr McIntyre added:
REA's unparalleled audience and proprietary data firmly position the business as a leading beneficiary of AI. In FY26 this translated into real commercial value for the business, customers, consumers and brokers.
Mr McIntyre said national house price growth started to moderate in the last quarter of the year; however, the company did not experience an impact from the various headwinds facing the housing market.
He added:
Despite proposed federal taxation changes, global events and interest rate increases affecting overall sentiment, vendors continued to bring their properties to market, and national listing volumes remained in line with the prior year.
Mr McIntyre admitted the housing market could cool, but said he expected REA Group's leading market position to stand it in good stead.
As he said:
Market fundamentals remain sound as we look further into the new year. Softening levels of buyer demand will see customers and vendors continue to turn to REA as they seek to differentiate their properties with our products and ensure their properties reach the largest and most engaged audience of Australian property seekers. As the rapid pace of technological advancement continues, we are increasing our speed to market and embracing opportunities for new value creation. The business is well positioned for future growth with a strong foundation and balance sheet, growing audience and engagement, and an exciting product pipeline accelerated and supported by new AI applications.
REA Group shares were 2.9% higher on the news at $171.19. REA Group is valued at $21.76 billion.
