Tax Components Highlighted in HomeCo’s Latest Distribution Announcement

Quarterly Distribution Announcement

HomeCo Daily Needs REIT (ASX – HDN), a leading Australian real estate investment trust focused on convenience-based retail assets, has declared a cash distribution of 2.15 cents per unit for the quarter ended 30 September 2025. This announcement provides investors with the latest income return details as the REIT continues to deliver consistent distributions aligned with its mandate.

Tax Components and Fund Payment

Notably, the distribution includes a "fund payment" component of approximately 0.8785 cents per unit, which is a specific tax-related amount pursuant to Australian tax legislation (Subdivision 12-H of Schedule 1 of the Taxation Administration Act 1953). This fund payment is relevant for non-resident withholding tax purposes and reflects the REIT's compliance with evolving tax requirements. Importantly, no part of this payment is attributable to a clean building MIT, a detail that may influence certain investor tax treatments.

Tax Structure Intentions for 2026

HomeCo Daily Needs REIT has confirmed its intention to operate as an Attribution Managed Investment Trust (AMIT) for the financial year ending 30 June 2026. This structure is designed to provide transparency and efficiency in tax attribution to unitholders. Additionally, the REIT plans to be a withholding managed investment trust for the same income year, ensuring compliance with withholding tax obligations for non-resident investors.

Investor Guidance and Future Reporting

The distribution components detailed in this notice are primarily for withholding tax purposes and are not intended for Australian resident unitholders to use in their income tax returns. Full year distribution and tax component details will be provided in the Attribution Managed Investment Trust Member Annual Statement (AMMA Statement), expected to be distributed in early September 2026. This approach ensures investors receive comprehensive and accurate tax information for their financial planning.

HomeCo’s Market Position

HomeCo Daily Needs REIT remains Australia's leading daily needs REIT with approximately $4.9 billion in assets spanning major metropolitan growth corridors including Sydney, Melbourne, Brisbane, Perth, and Adelaide. Its portfolio focuses on neighbourhood retail, large format retail, and health and services assets, complemented by strategic investments in last mile logistics infrastructure through its unlisted fund. This diversified approach supports the REIT’s objective of delivering stable and growing distributions to its unitholders.