Tax Complexities Loom as HomeCo Confirms Fund Payment in Latest Distribution

Quarterly Distribution Announcement

HomeCo Daily Needs REIT (ASX: HDN) has declared a cash distribution of 2.125 cents per unit for the quarter ended 31 March 2025. This payment is scheduled to be made on 22 May 2025, with the record date set for 31 March 2025. The distribution reflects the REIT's ongoing focus on providing consistent income streams to its unitholders.

Tax Components and Compliance

The distribution includes a fund payment amounting to 2.122975 cents per unit, issued under Subdivision 12-H of Schedule 1 of the Taxation Administration Act 1953. This technical classification is important for non-resident withholding tax purposes and highlights the REIT's compliance with Australian tax regulations. Notably, no portion of this fund payment is attributed to a clean building MIT, which can have different tax implications.

AMIT Status and Withholding Tax

HomeCo Daily Needs REIT has confirmed its intention to operate as an Attribution Managed Investment Trust (AMIT) for the financial year ending 30 June 2025. This status allows for more transparent and efficient tax treatment for investors. Additionally, the REIT will continue as a withholding MIT under the relevant tax legislation, ensuring appropriate withholding tax treatment for non-resident investors.

Portfolio Overview and Strategic Positioning

With total assets valued at approximately $4.9 billion, HomeCo Daily Needs REIT holds a substantial portfolio spanning around 2.5 million square metres of land. Its properties are strategically located in Australia's key metropolitan growth corridors, including Sydney, Melbourne, Brisbane, Perth, and Adelaide. The REIT focuses on convenience-based assets such as neighbourhood retail, large format retail, and health and services, sectors that tend to offer resilient demand.

In addition, HomeCo maintains a strategic investment in the Last Mile Logistics (LML) unlisted fund, which targets core plus transition assets with potential upside through repositioning into essential last mile infrastructure. This complementary investment aligns with broader trends in e-commerce and supply chain evolution, potentially enhancing long-term value for unitholders.

Investor Communications and Next Steps

Investors are reminded that the detailed tax components provided in this notice are primarily for withholding tax purposes and should not be used for individual income tax returns. Full year tax information will be available in the Attribution Managed Investment Trust Member Annual Statement (AMMA Statement) expected in early September 2025. The REIT's management team remains accessible for investor inquiries, underscoring their commitment to transparency and engagement.