Earnings release
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Level 6 , 50 Pitt Street Sydney NSW 2000 regiongroup.au Region RE Limited ABN 47 158 809 851 AFS Licence 426603 as responsible entity of Region Retail Trust ARSN 160612788 and as responsible entity of the Region Management Trust ARSN 160612626 1 9 February 2026 ASX Announcement Region Group (RGN) Announces 1H FY26 Results Financial performance • Statutory net profit after tax of $ 180.0 million including an increase in the fair value of investment propert ies • FFO of 7.9 c ents p er s ecurity , an increase of 3.9% from 31 December 2024 • A FFO of 6.9 c ents p er s ecurity , an increase of 3.0% from 31 December 2024 , after additional capital from leasing up of vacancies • Distribution of 6.9 cents per security representing a payout ratio of 8 7 % of FFO and 10 0 % of AFFO • Assets Under Management of $5.4 billion, an increase of 3.9 % from 30 June 202 5 • Net tangible assets of $2. 56 per security represents 3.6% increase from 30 June 2025 , with a portfolio weighted average market cap italisation rate of 5. 8 7 % • G earing of 3 2 . 7 % and pro forma gearing of 33.5% including the acquisition of Treendale Home & Lifestyle Centre, at the lower end of our target range of 30 - 40% • WACD of 4.6% pa with 100 % of debt hedged or fixed at an average rate of 2. 8 9% before margin • Issued $300m 6 - year Medium Term Note with a borrowing margin of 1.22% • No debt expiries until FY2 8 with $ 3 5 5. 5 million of available liquidity • 6.7 million securities purchased during the half year at an average price of $2.3 9 for a total consideration of $ 16. 0 million as part of an on - market security buy - back program Operational perfo rmance • Comparable portfolio MAT growth of 3.1% driven by supermarket sales growth of 3. 1 % and non - discretionary specialty sales growth of 3. 3 % • Portfolio occupancy of 97. 7 % , up from 97.5% at Jun e 2025. S pecialty vacancy has improved to 4.5 % at December 2025 , compared to 5.4 % at June 2025 • Average specialty rent increased to $9 30 per sqm , representing annualised growth of 5 % since December 202 2 • 177 specialty leasing deals completed with 3. 4 % average leasing spreads and 79 % of expiring tenants retained • Average annual fixed rent reviews of 4. 3 % a r e applied across 9 6 % of specialty and kiosk tenants
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RGN ASX Announcement 2 Value creation performance • Continued cu ration of the portfolio with the acquisition of Treendale Home & Lifestyle Centre for $ 53.0 million settled in January 2026 • $ 32 .0 million of capital expenditure invested in developments, centre repositioning, sustainability and partnering with our anchor tenants • Funds Under Management have increased by 5.7% to $7 52.1 million following the settlement of Dalyellup Shopping Centre for $35.8 million in November 2025 • During the period , the Metro Fund exchanged contracts for the a cquisition of three additional strata properties valued at $89.0m at West Village , which will further contribute funds management growth in the future . Two of these properties settled in January 2026 with the remaining property expected to settle by June 2026 Outlook and Earnings Guidance We remain concentrated on delivering defensive, resilient cashflows to support secure and growing distributions to our security holder s . To achieve this, our focus will be on: • Improving our comparable NOI through strong leasing, increased fixed rent review s and proactive expense managemen t • Curating our portfolio through selective acquisitions and disposals • Reinvesting in our centres to drive value • Growing our funds under management • Maintaining a proactive approach to capital management • CEO transition Assuming no significant change in market conditions, o ur FY2 6 earnings guidance has been upgraded to be : • F FO of 16.0 c ents per security , up from prior guidance of 15.9 cents per security , represents a growth of 3.2% from FY25 • AFFO of 1 4. 1 c ents p er security , up from prior guidance of 14.0 cents per security, represents a growth of 2.9 % from FY25 Target distribution per security payout ratio is expected to be approximately ~ 90% of FFO and ~ 100 % of AFFO . This document has been authorised to be given to the ASX by the Board of RGN. ENDS Media, Institutional investor and analysts, contact: David Salmon Greg Inkson Chief Financial Officer Chief Corporate Officer Region Group Region Group (02) 8243 4900 (02) 8243 4900 Security holders should contact the R G N Information Line on 1300 318 976 with any queries.