HomeCo Daily Needs REIT's (ASX:HDN) fiscal first-half results are operationally sound, though aggressive positioning of the hedge book in its August 2025 results removed the potential for an earnings upgrade, according to a Wednesday report by Jefferies.
On Wednesday, the company reported fiscal first-half funds from operations (FFO) of AU$0.044 per share, up from AU$0.043 a year earlier.
The FFO was below expectations, due to lower-than-expected net property income, Jefferies said.
However, its fiscal first-half distribution per unit met expectations, Jefferies added.
Jefferies has a buy rating on the company and lowered its price target to AU$1.48 from AU$1.58.
Shares of the company fell nearly 2% on market close.