Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

HomeCo Daily Needs REIT (HDN.AX)

Company Dividend Discount ModelIndustry: REIT - RetailSector: Real Estate

Valuation Snapshot

Stable Growth$0.93 - $1.35$1.14
Multi-Stage$1.63 - $1.79$1.71
Blended Fair Value$1.42
Current Price$1.25
Upside13.79%
DecisionDon't Buy

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 Rate8.74%8.74%8.74%
Growth Rate-2.00%-1.00%0.00%
Fair Value$0.93$1.14$1.35
Upside / Downside-25.34%-9.04%8.25%

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 Rate8.74%8.74%8.74%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)204.74206.83208.92
Year 2 PV (M)199.11203.20207.32
Year 3 PV (M)192.61198.56204.64
Year 4 PV (M)185.44193.13201.05
Year 5 PV (M)177.81187.07196.71
PV of Terminal Value (M)3,279.433,450.203,628.01
Equity Value (M)4,239.144,438.984,646.65
Shares Outstanding (M)2,599.242,599.242,599.24
Fair Value$1.63$1.71$1.79
Upside / Downside30.47%36.62%43.02%

High-Yield Dividend Screener

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