The Region Group (ASX: RGN) share price is in focus today after the company reported a statutory net profit after tax of $268.8 million and lifted funds from operations (FFO) by 3.2% to 16.0 cents per security.
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What did Region Group report?
- Statutory net profit after tax (NPAT) of $268.8 million
- FFO of 16.0 cents per security, up 3.2% on FY25
- Adjusted FFO (AFFO) of 14.1 cents per security, up 2.9%, with 100% distributed
- Net tangible assets (NTA) rose 4.0% to $2.57 per security
- Debt portfolio of over $1 billion refinanced at improved margins
- Portfolio occupancy up to 98.1% from 97.5% a year ago
What else do investors need to know?
Region Group achieved comparable net operating income (NOI) growth of 3.3%, helped by strong demand in its essential retail assets. Supermarket comparable MAT grew by 4.1%, and 58% of supermarkets are now generating turnover rent. Over the year, 380 specialty leasing deals were completed at an average leasing spread of 4.0% and average rent increases of 4.4%.
The group also optimised its portfolio through active management including acquisitions, divestments, and growth of its Metro Fund partnership with a global investor.
What did Region Group management say?
RGN CEO and Managing Director Greg Chubb said:
FY26 was a strong year for RGN with comparable NOI growth of 3.3%. There is significant opportunity and momentum to pursue further organic growth across the RGN essential retail portfolio where our scale, focus and expertise create advantage.
What's next for Region Group?
Looking ahead, Region Group's board expects to keep generating defensive and resilient cash flows from its assets. For FY27, guidance is for 3.0% FFO growth to 16.5 cents per security and 3.0% AFFO growth to 14.5 cents per security, with the distribution payout ratio staying near 100% of AFFO. Gearing is below the midpoint of the target range, and undrawn debt of over $200 million provides flexibility.
The company says it remains focused on maximising performance and returns from its leading essential retail property portfolio.
Region Group share price snapshot
Over the past 12 months, Region shares have declined 1%, trailing the All Ordinaries Index (ASX: XAO), which is flat over the same period.
