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HomeCo Daily Needs REIT (HDN.AX)

Company Dividend Discount ModelIndustry: REIT - RetailSector: Real Estate

Valuation Snapshot

Stable Growth$1.14 - $1.74$1.42
Multi-Stage$2.47 - $2.71$2.59
Blended Fair Value$2.00
Current Price$1.25
Upside60.27%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR20252024202320222021
DPS0.00%0.00%0.060.060.060.030.010.000.000.000.000.00
YoY Growth--2.12%0.49%105.49%413.46%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--5.20%5.35%5.37%2.41%0.45%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)332.30
(-) Cash Dividends Paid (M)209.20
(=) Cash Retained (M)123.10
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)66.4641.5424.92
Cash Retained (M)123.10123.10123.10
(-) Cash Required (M)-66.46-41.54-24.92
(=) Excess Retained (M)56.6481.5698.18
(/) Shares Outstanding (M)2,599.242,599.242,599.24
(=) Excess Retained per Share0.020.030.04
LTM Dividend per Share0.080.080.08
(+) Excess Retained per Share0.020.030.04
(=) Adjusted Dividend0.100.110.12
WACC / Discount Rate6.81%6.81%6.81%
Growth Rate-2.00%-1.00%0.00%
Fair Value$1.14$1.42$1.74
Upside / Downside-8.98%13.45%38.94%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)332.30328.98325.69322.43319.21316.01325.49
Payout Ratio62.96%68.36%73.77%79.18%84.59%90.00%92.50%
Projected Dividends (M)209.20224.90240.27255.31270.02284.41301.08

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.81%6.81%6.81%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)208.44210.56212.69
Year 2 PV (M)206.38210.61214.89
Year 3 PV (M)203.24209.53215.94
Year 4 PV (M)199.22207.47215.98
Year 5 PV (M)194.47204.60215.14
PV of Terminal Value (M)5,404.535,685.955,978.98
Equity Value (M)6,416.276,728.727,053.63
Shares Outstanding (M)2,599.242,599.242,599.24
Fair Value$2.47$2.59$2.71
Upside / Downside97.48%107.10%117.10%

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