Region Group Boosts Profit and Distribution in Strong Half-Year Result
Region Group has reported a solid half-year financial performance ending December 2025, with increased revenue, net profit, and distributions, backed by an unqualified auditor review.
- Revenue rose to $195.8 million, up from $191.9 million
- Net profit after tax increased to $180 million
- Funds from Operations (FFO) improved to 15.5 cents per security
- Interim distribution declared at 6.9 cents per security, paid January 2026
- Distribution Reinvestment Plan (DRP) suspended for this period
Solid Financial Growth
Region Group has released its half-year results for the period ending 31 December 2025, showcasing a steady increase in key financial metrics. Revenue climbed modestly to $195.8 million, compared to $191.9 million in the previous corresponding period. More notably, net profit after tax attributable to security holders surged to $180 million, marking a significant improvement over the $81.8 million recorded a year earlier.
Improved Earnings and Distributions
The company’s Funds from Operations (FFO), a key measure of underlying performance in property trusts, rose to 15.5 cents per security, up from 7.9 cents previously. This translated into a basic earnings per security figure of 6.9 cents, slightly higher than the prior 6.7 cents. Reflecting this stronger performance, Region Group declared an interim distribution of 6.9 cents per security, which was paid on 30 January 2026.
Distribution Reinvestment Plan Suspended
Interestingly, the Distribution Reinvestment Plan (DRP), which allows security holders to reinvest distributions into new securities, was suspended for this interim period. While the announcement did not elaborate on the reasons, such a move often signals a strategic decision to manage capital structure or liquidity more conservatively amid market conditions.
Auditor’s Unqualified Review
The half-year financial statements were reviewed by KPMG, with partner Paul Thomas confirming an unqualified review report. This means the financial reports comply with Australian accounting standards and the Corporations Act 2001, providing investors with confidence in the accuracy and integrity of the reported figures. No changes in control of entities or significant joint ventures were noted during the period.
Outlook and Market Implications
Region Group’s portfolio includes interests in several joint ventures such as the SCA Metro Convenience Shopping Centre Fund and Matrix Trust, which continue to underpin its earnings base. The positive half-year results reinforce the trust’s resilience in the current real estate environment. However, the suspension of the DRP and lack of forward guidance leave some questions about the group’s near-term capital management strategy.
Bottom Line?
Region Group’s half-year strength sets a positive tone, but investors will watch closely for clarity on capital plans and growth prospects.
Questions in the middle?
- What prompted the suspension of the Distribution Reinvestment Plan this period?
- How will Region Group’s joint ventures contribute to future earnings growth?
- Will the group provide guidance on full-year distributions and capital management?
