Shares dropped 4.3% as investors reacted negatively to ongoing challenges in regional Victoria and South Australia communities and potential margin pressures from rising building costs and procurement inefficiencies, despite solid cash flow growth.
- Net operating cash flow increased 41%, driven by portfolio expansion.
- Same-store rent growth was a moderate 6% for FY 2026, reflecting steady but not accelerating pricing power.
- Regional Victoria and South Australia property segments are underperforming relative to expectations.
- Residential building costs remain high, with average attached dwelling costs around AUD 637,000, pressuring margins.
- Operational challenges persist in procurement, energy, and construction, with management acknowledging ongoing work to improve.
Community Discussion