UPDATE: Region Group Ltd (ASX: RGN) has just concluded its annual general meeting (AGM), revealing a surge in profits and robust performance for the fiscal year 2025 (FY25). The company reported a staggering $212.5 million in statutory profit after tax, a remarkable leap from just $17.3 million last year.
Key highlights from the AGM demonstrate Region Group’s resilience, with funds from operations (FFO) climbing to 15.5 cents per security, up from 15.4 cents in FY24. Adjusted funds from operations (AFFO) also rose to 13.7 cents per security, reflecting a consistent growth strategy. Investors will be pleased to note that the company announced a total distribution of $159.1 million, equating to 100% of AFFO.
Region Group’s assets under management have reached an impressive $5.2 billion, marking an 8.7% increase compared to FY24. The company now manages a diverse portfolio of 100 retail properties, primarily anchored by major supermarkets such as Woolworths and Coles. The firm reported a 3.2% growth in comparable net operating income, thanks to effective leasing strategies and stringent expense management.
The AGM highlighted key developments, including the acquisition of a new neighborhood center, the divestment of non-core assets, and a significant investment of $75 million into portfolio enhancements and sustainability initiatives. Occupancy rates remain strong at 97.5%, with the majority of expiring tenants retained.
Looking ahead, Region Group is committed to maintaining sustainable earnings through robust leasing performance and increased fixed rent reviews. The management is strategizing to grow the portfolio further through selective acquisitions and divestments, while also executing capital management initiatives, including an ongoing security buy-back program.
In a forward-looking statement, Region Group reaffirmed guidance for FY26, projecting at least 15.9 cents per security in FFO and 14.0 cents per security in AFFO, assuming stable market conditions.
Investors should take note that over the past year, Region Group shares have increased by 7%, slightly lagging behind the S&P/ASX 200 Index, which saw an 8% rise during the same period.
This AGM marks a pivotal moment for Region Group as it continues to navigate the challenging retail landscape while delivering value to its shareholders. With a strong focus on strategic growth and sustainability, Region Group is poised to make significant strides in the coming year.
Stay tuned for further updates as Region Group executes its ambitious plans to enhance shareholder value and expand its market presence.
