Earnings call transcript: Region Group posts stronger FY 2026, shares slip 3.4%
In the company's earnings call transcript, Region Group reported stronger FY 2026 results, with profit and operating income rising due to robust supermarket sales, improved occupancy, and higher leasing spreads. However, the shares fell 3.39% to $2.28 as investors considered slowing specialty sales in the second half and cautious outlook for inorganic growth.
The company's profit was AUD 268.8 million, with FFO and AFFO per security at AUD 0.16 and AUD 0.14, respectively. Comparable NOI increased 3.3%, and supermarket sales grew by 4.1%. Specialty sales, led by food retail, services, and medical categories, rose 2.5%. Management highlighted steady underlying operating improvement, with FFO and AFFO per security growing by 3.2% and 3%, respectively.
The stock closed near the lower end of its 52-week range, indicating investor caution. Region Group forecasted FY 2027 FFO and AFFO per security growth of about 3%, with similar expected capital spending in the upcoming years. The company aims for sustainable AFFO growth of 3% to 4% plus over the medium term.
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