Thank you very much and welcome to the FY 2025 Results for Region Group. My name's Anthony Mellowes. I'm the CEO. Presenting these results with me today is David Salmon, our CFO. Also in the room with me is Erica Rees, our Chief Operating Officer. Really pleased with this set of results as we're now back to earnings growth in a sector that has a really positive outlook for valuation upside. First, let me take you to Slide 4, which sets out the FY 2025 highlights. Our funds from operations, or FFO, was AUD 0.155 per security. Our adjusted funds from operations, or AFFO, was AUD 0.137 per security. Our distribution was also AUD 0.137 per security. Our statutory net profit after tax was AUD 213 million. Our operational metrics remained resilient. Our comparable MAT growth was in excess of 3%. Our average annual specialty fixed rent reviews are now up to 4.3% per annum.
Our average specialty leasing spreads were 3.7%. Finally, our comparable NOI growth was 3.2%. With respect to capital management, our average weighted average cap rate has firmed by 10 basis points to 5.97%. We've also commenced a non-market security buyback program. Our NTA per security has increased to AUD 2.47 off the back of valuation growth. Our weighted average cost of debt remains steady at 4.3% with high hedging levels for the next few years. Slide 5 remains unchanged. Our strategy is to provide defensive, resilient cash flows to support secure and growing long-term distributions to our security holders. Moving on to Slide 7, our operational performance, which starts on Slide 7, we have a strong weighting towards those non-discretionary food, health, and retail services tenants.
46% of our gross rent is attributable to our anchor tenants, and 54% of our gross rent is to specialties and mini-majors with a key focus on food and liquor, retail services, and pharmacy and healthcare. We have 87 centres that are 100% owned by Region, which are geographically diversified across Australia. Moving to Slide 8, we continue to have consistent and resilient sales growth across our non-discretionary tenants. Our 3.1% comparable MAT growth is driven by supermarkets at 3.3%, discount department stores at 3.4%, mini-majors at 1.8%, non-discretionary specialties at 3.7%, and our discretionary specialty tenants just slightly negative. Our specialty sales productivity is now just over AUD 10,000 a square metre. As with the majority of the market, we have now excluded tobacco sales from all of our figures.
Moving to Slide 9, we continue to capital partner with our anchor tenants to drive sales turnover, with over 55% of our supermarkets generating turnover rent. We have 123 anchor tenants contributing 46% of our gross rent. We now have 76 direct-to-boot and e-commerce facilities. As I said, the 3.3% supermarket comparable MAT growth has generated AUD 7.5 million of turnover rent from 54 anchor tenants, with a further 13 anchor tenants within 10% of that turnover rent threshold. Slide 10 shows our leasing activity that has driven high occupancy and higher annual fixed rent reviews. 97.5% of the portfolio is occupied, with 81% of expiring tenants retained, which helps to minimize leasing capital expenditure and downtime. The Portfolio WALE decreased slightly by 0.2 years - 4.9 years.
Our average specialty gross rent has increased from AUD 880 a square meter - AUD 919 a square meter, with an annualized growth of 5% since FY 2022. We have an average of 4.3% fixed rent reviews, which is applied across 94% of our specialty and mini-major tenants. This has been a really important area of focus for Region Group over the last three to four years. We've increased this figure from 3.8% - 4.3%, and this affects 80% of our specialty leases every year. Slide 11. We are proactively remixing and constantly remixing to secure quality everyday essential tenants. We completed 372 deals at an average leasing spread of 3.7%, with strong performance from new leases, which increased by 6.1%. Our half-year leasing spreads increased from our second half-year leasing spreads increased from 2.1% in the first half to over 4% in the second half.
70% of the Mosaic Brand GLA now has a signed offer or is being temporary casually leased or is strategically held. Our leasing incentives on new deals are just over 11 months. Although it has been a slight increase, it is still below the 12 months or 20% for an average five-year lease term that is applicable for our industry. Onto Slide 12. We continue to progress towards our sustainability target, which is spelled out in our annual sustainability report, which was also released today. Key focus has been on environmental, which is progressing with our solar rollout, with 21.7 MW of solar PV across 33 sites installed and operational.
Socially, we continue to make a really positive impact in the communities that we operate in and have undertaken a number of community initiatives, including the Hope in a Suitcase, which helped raise awareness and collect donations across 13 of our centers to provide children entering foster care with essential items. Finally, governments, our alignment to the ASRS is on track for FY 2027 reporting, and our tendering process for new national contracts included modern slavery risk assessment and protections. I'll now hand over to David, who will talk through our financial performance.
Thanks, Anthony, and good morning, everyone. I'll start on Slide 14, where we highlight the key drivers of the movement in our funds from operations, which returned to growth in FY 2025. Our FFO for FY 2025 was AUD 15.05 per security, in line with guidance and representing a growth of 0.6% over FY 20 24. There were positive contributions from the comparable portfolio NOI growing by 3.2%, the impact of our transactional activity, and the establishment of the Metro Fund 2. The FFO growth was offset by the previously flagged short-term impact of our center repositioning projects and the normalisation of our corporate-led expenses. During the year, we also raised a provision for unpaid rent relating to two national tenants that entered administration during the period. Moving to Slide 15, we'll provide a bit more color on our financial result for the half, for the year, sorry.
Our statutory profit for the year is AUD 212.5 million. This compares to a AUD 17.3 million profit in the prior year following an increase in the fair value of investment properties. As mentioned, our funds from operations were AUD 15.05 per security. Our adjusted funds from operations came in at AUD 13.07 per security, and our distribution for the year represented a 100% payout ratio in line with guidance. Net operating income has grown by 1%, with comparable growth of 3.2% offset by the impact of net asset disposals, temporary downtime from center developments, and ECL impacts. Our interest expense has now stabilized with a weighted average cost of debt at 4.3%, consistent with the prior year. Our maintenance capital and leasing incentives are in line with long-run averages. Onto Slide 16. As of June 30, 2025, our total assets under management was AUD 5.2 billion.
This is an 8.7% increase from June 30, 2024 and includes the Metro Fund 2 properties that we started to manage during the year. Our balance sheet remains healthy with gearing at 32.5%, which is at the lower end of our target range. This provides us with the capacity to deploy capital where opportunities arise. Our NTA has grown to AUD 2.47 per security off the back of valuation growth during the year. Slide 17 shows some further information around the changes in the valuation of our portfolio. During the year, our portfolio increased by AUD 92 million. The movement was driven by acquisitions of AUD 69 million and a 3.8% fair value increase of AUD 165 million, including capital, partially offset by disposals of AUD 142 million. Capitalisation rates have firmed by 10 basis points since June 2024 to 5.97%. Onto Slide 18, where we talk to our capital management position.
During the year, we completed AUD 1.4 billion of interest rate derivative transactions. We were 97% hedged during the year and are highly hedged in FY 2026 and FY 2027. Our average hedged rates over the next three years are below 3%. Our weighted average cost of debt was stable at 4.3%, which we expect to increase to 4.6% in FY 2026. At year end, we hold over AUD 300 million in available liquidity and have no debt expiry until FY 2027. I'll now hand back to Anthony to talk through our value creation opportunities.
Thanks very much, David. We are focused on improving the quality of our core portfolio, and during the year, we acquired Kallo Town Centre and neighbourhood centre, anchored by Woolworths and strategically located in the growth corridor of the northern suburbs of Melbourne. We also divested six non-core centres and a Bunnings site for a total of AUD 228 million at an average passing yield of 5.8%. The market continues to be liquid with cap rates firming and continued strong interest for these assets from both private but also institutional investors. We continue to remain the largest owner of convenience-based retail centres, and we have a proven transactional track record. Moving to Slide 21, there continues to be excellent Australian supply-demand fundamentals, particularly in the retail sector that will benefit Region . The outlook for new retail floor space continues to remain limited, with strong population growth creating these strong fundamentals.
There is a return of positive retail sentiment, and with the cap rates stabilizing and potentially even compressing further, the recent evidence suggesting compression with continued income growth providing support for further continued growing valuations. Slide 22 highlights the FY 2025 actual and FY 2026 indicative spend on our capital redeployment program. In FY 2025 we spent AUD 75 million, and in FY 2026 we expect to spend around AUD 50 million. We're targeting a completion yield of between 6% and 10% and a 10-year IRR that is greater than our weighted average cost of capital. Our funds management platform on Slide 23, during the period we did establish Metro Fund 2, which more than doubled our funds under management to in excess of AUD 700 million, and there are additional investment opportunities that we are currently investigating with our partner.
During July 2025, the Metro Fund exchanged on the acquisition of Dalyellup Shopping Centre in Western Australia for just under AUD 36 million, and this centre is anchored by Woolworths. David will now talk through our AFFO growth target.
To sustainably drive our medium to longer-term earnings growth, we are focused on generating comparable NOI growth of at least 3%. Through our value creation initiatives, we aim to add another 1% to our growth rate. Our work in the capital management space to increase our hedging has mitigated some of the short to medium-term earnings volatility generated from interest rates, with a longer-term impact dependent on market movements. Based on all of this, we are targeting medium to longer-term growth in our FFO and AFFO of at least 3% - 4% per annum. Slide 26 provides a waterfall from FY 2025 - FY 2026 FFO guidance, which represents a growth of 2.6% from AUD 0.155 per security - AUD 0.159 per security. The FY 2026 FFO guidance is underpinned by a 3.3% comparable NOI growth, accretive transactions, and funds management activity.
This is partially offset by an increase in the weighted average cost of debt from 4.3% - 4.6%. I'll now pass back to Anthony, who will talk to our key priorities and outlook.
Thanks, David. Slide 27. We believe our non-discretionary retail will continue to be resilient and will generate comparable NOI growth through strong leasing, increased fixed rent reviews, and continued proactive expense management. Our balance sheet is supported with growing valuations, which provides us with the opportunity to invest in our centers and be disciplined with acquisitions and explore additional funds management opportunities. We are maintaining a proactive approach to capital management, including a non-market security buyback, continued asset recycling, and interest rate hedging. Assuming there are no changes in market conditions, our FY 2026 guidance for FFO is at least AUD 0.159 per unit, and our AFFO is at least AUD 0.14 per unit. Finally, I also announced my intention to retire at the end of May 2026. It's been a fantastic 13 .5 years since we were demerged from Woolworths. I've really enjoyed my time.
The portfolio is in great shape, our earnings are growing, and we're in a sector that's in great demand. I really look forward to seeing a lot of you over the next couple of weeks. Thank you very much, and do we have any questions?
If you wish to ask a question, please press star, then one on your telephone, and wait for your name to be announced. If you wish to cancel your request, please press star, then two. If you are on a speaker phone, please pick up your handset to ask your question. Our first question for today will come from Cody Shield with UBS Equities. Please go ahead.
Morning, Anthony, David . Anthony, congratulations on your tenure with Region and best wishes moving forward. Just on the property expense line item, it looks like there was 10% or so down from first half to second half, sorry. There was also a bit of a lift in corporate expenses into the second half. Can you just run me through the drivers there?
David, do you want to answer that?
Yeah, Cody, David here. Yeah, sure. We did have a reduction in property expenses in the second half. Broadly, the drivers there is we did have some cost savings initiatives that have started to kick in on our cleaning and security contract procurement that we undertook earlier in the year. We've also had a bit more weighting towards our R&M works in half one, and that was a bit lower in half two as well. We had some electricity savings coming through from our solar PV projects kicking in as well. There was just some operational general savings from the various headcount initiatives that we'd also undertaken at the end of the first quarter as well. They're broadly the key drivers there. In terms of the corporate.
Sorry, go on.
Yeah, sorry, go on.
I was going to say you also asked about the corporate expenses.
Yeah, look, corporate expenses are basically just normalizing to back where we think they should be. We did have some benefits in the prior year from our head office lease incentives that kept it lower than it would ordinarily have been. The main driver of that coming back and the growth this year was that normalization of those costs.
Okay, that's clear. In terms of guidance, I mean, 3.3% comparable NOI growth, are you able to provide a feel for, you know, what you're kind of going to be seeing for growth versus expense moderation? You know, what's the interplay there?
Yeah, you're right. We are assuming 3.3% for FY 2026. I mean, broadly, we're assuming a 3% - 3.5% growth in expenses, property expenses as part of that. Obviously, you get some things will be, you know, maybe a bit better than that, or some things might be a bit higher, but the weighted average is around that 3% - 3.5% zone. Basically, the other part of the guidance obviously is our top line, which we're assuming will be growing about 4% - 4.5%.
Okay, great. One more on repositioning, if I may. It's about AUD 25 million for FY 2026. Can we think about that as a run rate moving forward, or is it going to vary year by year?
Look, it's Anthony here. The AUD 50 million is probably a bit normalised, and then we do have a bit lumpy when we do do a specific development. Delacombe was in FY 2025. We don't have any specific development, I'm talking normal larger developments, in FY 2026 scheduled at this stage. We do have a number of developments that will come up over the next few years, such as North Orange in New South Wales, Green Bank in Queensland, and Newcastle in Newcastle. There's a number that are coming through, but that AUD 50 million is probably pretty normalised, and we will certainly forecast when a bigger chunk is coming through developments.
To be clear, was there any impact from repositioning in 2026 guidance?
Yeah, broadly, the repositioning projects, whilst we have had some income coming on board in 2026 from those projects as they complete, because we're starting some newer ones, there's also some downtime. It's largely a net zero on both of those kicking in and kicking out. I guess what you'll probably see is more of that benefit coming through from those repositioning projects in FY 2027 on the Region Group.
Okay, great. That's all for me. Thanks, Anthony. Thanks, David.
Thank you.
The next question will come from Adam West with JPMorgan , please go ahead.
Hi, Anthony. Hi, David. Just a quick one from me. I'm just wondering, what were the spreads X for Mosaic leases?
The 3.7% for the year, excluding Mosaic leases, was about 3.2%.
I'm just wondering, for the FY 2026 guidance, have you guys factored in any credit losses or lost rents from the Mosaic leases in there?
Yes, we do have some lost rent on the Mosaic sites in FY 2026.
There's two types. There's lost rent, and there's also some leasing capital.
That's exactly right. The lost rent and leasing capital, if you look at them combined, considering they all go into AFFO, it's roughly about AUD 3.5 million worth, which, you know, that's a bit of a tailwind to the extent that we obviously lease those sites up, and that probably won't come through until FY 2027.
Okay, that's clear. Thanks.
Next question will come from Howard Penny with Citi , please go ahead.
Hey, my friend, congrats on Region Group on a great finish. In terms of track record and how you see those evolving, we've seen a lot of capital coming into the specific asset class and interest from both local and international investors. How do you see that evolving over the next 12 - 18 months?
Thanks, Howard. It was a bit hard to hear, but I think you said, what's the demand from institutional and investors and other investors for our sector, and how is it evolving over the next 12 - 18 months? Look, there has been, or there has always been in this sector a lot of private demand. The average, you know, price of a convenience-based retail shopping center is in that sort of sub AUD 50 million. There's always been a lot of demand there from privates. That continues. Where we're seeing a bit more demand from institutional investors is when assets get up a little bit higher, north of AUD 50 million into the closer to the AUD 100 million or north of AUD 100 million. You're seeing more institutional investors. I noticed Charter Hall announced a new fund that they're looking to pursue those types of assets.
I think a lot of people, even our joint venture partner who's been on this journey for a number of years, they like the non-discretionary. It's very resilient. Fifty percent of the income is often from Woolworths and Coles, so it's very, very secure. A lot of institutional investors do like that. There's good cash flows coming through. Incentives are sort of 20%, so they're not highly volatile incentives. I think there's a lot to be said for this sector, and I think that's why a lot of people, there's always the privates, but you're seeing a greater influx of institutional investors looking at this sector. Their biggest issue is their smaller dollar values, so you need to get a number of them to outlay significant sums of money.
Just on cost of debt, for FY 2026, your weighted average cost of debt of 4.6%, would you say that that is the peak finance cost you're expecting over the next few years?
Oh, Howard, it's David. Yeah. Look, like what we're trying to highlight in the slides is we have got hedged rates of sub 3% for the next three years. We think that does add a bit of stability to the overall cost of debt during that period. You know, on the assumption we can maintain our borrowing margins, which we expect to do so. We see in the medium term that there's some stability in our cost of debt. When you get right out past that, obviously there's a lot of market movements that have to get factored in. In the short to medium term, we think that cost of debt is fairly stable.
Thank you very much and congrats again, Anthony.
Thanks, Howard.
The next question will come from Simon Chen with Morgan Stanley, please go ahead.
Oh, good morning, Anthony. Good morning, David. Hey guys, Metro Fund, can you give me some insight into that one? Looks like you've void some capital for the first time in several years. What's the capacity there, and how did Fund 1 and Fund 2, you know, in totality get through?
I'll just correct it. I wouldn't say it's been several years, Simon, because I think we've only been with them for about four or five years. Certainly they've been quieter the last couple of years with interest rates going up because they do look at it in an after-debt position. They have a very good partner to have. They like the sector. It's their preferred retail sector, they tell us. I think we're going to continue to see opportunities with them. I'm quite excited. We bought Dalyellup just recently with our partner. That's very encouraging. We're looking at a number of other opportunities with them. I see nothing but a positive outlook for them, just like many other institutions are looking at this space.
In terms of the size and scalability, etc., can you make some comments on that? I think you've mentioned a AUD 700 million or something at the moment, but you know, what could it get to on the platform?
Look, our initial scale was AUD 750 million, and we're basically there now. I think we will be working with our partners to, I think it really comes down to what's their allocation to this sector. We look at assets on a single asset basis to see whether it generates the appropriate returns for them. They are very happy with this sector and want to allocate more to it. We're not talking about reducing. I can't tell you whether it's AUD 1 billion, AUD 2 billion, AUD 3 billion, AUD 4 billion, AUD 5 billion. I don't know.
Hey, next question for David. I just wanted to clarify one of the answers that goes to a previous chat question. You've got projects in development, central repositioning, etc., and that's possibly about 0.2% FFO in FY 2025. You mentioned that that won't be coming back in 2026. Is that correct? Because what comes in will also go out. Like, you know, there'll be even money, I guess, of money NOI coming back, and then you're losing NOI to the new services and repositioning projects.
Yeah, broadly.
When does the repositioning pipeline actually finish so that the 0.2% actually comes back?
Yeah, look, I mean, broadly what we're saying in FY 2026 is, yes, we do have some income starting to come online from some of the completed Region projects or as we're sorting some leasing up on those projects, but that'll come online during FY 2026. We're also commencing our next tranche of Region projects, which will have downtime. We're broadly in FY 2026, so we're roughly offsetting each other. That's why we haven't called it out specifically on the chart there.
Okay, that's clear. Should you guys now see central repositioning as a permanent feature for Region Group, or do you think because, like Anthony said in his presentation about how pricing opportunities are coming back, which has to say, it's probably easier just to focus more on acquisitions and buy stuff that immediately is rather than repositioning.
Look, I think there's three. How I view it, it's a whole capital allocation. We don't just focus on one area. We focus on which is going to give us the best return, whether that's acquisitions, whether that's a bit of center repositioning, whether that's larger retail developments, whether that's the buyback. It all depends on which is the best at a point in time, and that's what we will be focusing on. You'll see, as I said, the actual developments have come off this year, which was Delacomb that's come off, and we've roughly got about the same going forward on our repositioning. I think that's, and we do get a return on that, so that is going to continue to be there, as David talked about.
I think that we look at all of them at a point in time when we make the decision to commit as a whole capital management. What's the best use of that capital at any particular point in time?
Very good, very clear. Thanks very much, guys, and enjoy the farewell tour, Anthony.
Thanks, mate. See you at lunch.
The next question will come from Murray Connellan with Moelis Australia. Please go ahead.
Hi, good morning. Anthony, congratulations on your retirement and on a great career. I was hoping to just touch on the Mosaic Brand space again, please. You've obviously spoken to that AUD 3.5 million headwind into this year. What is your expectation on how long it takes to get that space fully leased up again? Could you maybe just give us a bit more color on what sort of spread you're seeing there specifically, please?
Yeah, look, I'll give a gut first. I think we've got roughly 70% done. Now I think it's probably about 55% of longer-term leases locked in on that. We've got a little bit of work to do there. The issue that hurts us in this year is more about the leasing incentive because that's normally about at least 12 months. There tend to be bigger areas that we have to do, and some of the leasing incentives go up. That's where that three and a half, there's a bit of lost rent and leasing incentives in there. Whereas in this year, FY 2026, there was no leasing incentive really. It was just all lost rent predominantly. That's where we're sort of looking at. I think, going forward, I'd like to, you know, we've got good runners on the majority. We're at 70%.
I think, by the end of the year, end of FY 2026, I think we'll be well done. There will always be some that maybe we haven't quite got away, but I'm pretty confident the vast majority will be done by that date. We always treat it now as we're not looking at Mosaic. It's just as part of the normal leasing, releasing of vacant shops that we have. It's just fallen into the normal. It'll come into comp going forward. That's what it is. That's how we treat it. Our focus is to reduce our vacancies.
Thanks. Anthony, you've spoken about the direct market a little bit. Can you just share your thoughts on what the appetite is to be deploying on balance sheets at the moment and just how easy or difficult it is, how much is being on the market at the moment that you like, and what your appetite is for gearing at the moment.
Yeah. Look, we're in a situation at the moment. There's a lot of people in demand. There's a lot of demand. Quite a few of the owners basically also sit there and say, I don't want to sell because it's in demand. If people want them, I'm happy to keep them because we have a very high proportion of private ownership in this sector. That's the first thing. For us, there's a lot that we could buy. It's actually pretty easy to buy. You pay a dollar more than the next person is prepared to do. The trick is buying well. For us, we're very disciplined. We look at what we can afford, what our cost of capital is, what the returns are, what the growth profile is. We look at a lot of factors there. In terms of our balance sheet, David, gearing, whether you want to.
Yeah, look, the gearing's at 32.5%. Look, at the lower end of our target range, for the right opportunity, we would definitely consider whether we wanted to increase that gearing. Obviously, we've got plenty of capacity with our covenants and things like that. We've got headroom in our credit ratings and things like that as well. It all comes down to the right opportunity and yields and that IRR, that long-term IRR, whether that ticks all the hurdles that we set for ourselves.
There's a buyback, obviously.
That's right. We also can deploy capital into the security buyback that is currently underway for us.
What you're seeing at the moment.
I was just going to say, obviously, our gearing is supported by a strong valuation environment as well. Cap rates have started to tighten, and there definitely appears to be a momentum for asset values going into the rest of the year.
Based on what you're seeing at the moment, would you expect much more cap rate compression to come through in 2026?
I think it's hard to look to FY 2026, but certainly looking at what's happened recently and focusing on December, I expect cap rates to continue to compress while we also have good income growth with our assets. I see continued valuation growth, which is a real, real positive. I think with a lot of investors that are excited about this sector, it means cap rates are compressing tighter than probably where I would have thought three months ago. I've got a really good outlook of our sector going forward.
Good for me. Thanks.
The next question will come from Callum Bramah with Macquarie. Please go ahead.
Good morning. Thanks a lot for taking the questions, and I'd add my congratulations to Anthony. I just had a question around cash flow. I was just having a look through, and it looks as though in the second half of the year, your operating cash flow dropped quite a bit. Are you able to just talk me through the drivers of that?
Yeah, look, I guess there's broadly a few things there. We have some project costs and our systems and technology costs that don't form part of our FFO, but are a cash outflow that we've incurred as a business. We also had some restructuring costs, like I was referring to a few months ago, that go in operating cash flow, which doesn't go through our FFO. I guess there's this timing of collection of cash receipts, essentially. We had probably a bit more accrued income at the end of June than in the past. There was a lot of percentage rent that came through, which obviously we haven't collected yet. We accrue for a lot of that because it gets billed later. We had a very strong quarter from a sales point of view, and that's reflected in some high percentage rent accruals as well. That's broadly the three buckets.
I just wanted to follow on, I guess, from some of your earlier comments, Anthony, just around that sort of value creation and the increased competition in the sector. Do you think, looking forward, it's going to become harder to generate that 1% of incremental growth from those value creation strategies, or do you still think there's sufficient opportunity? I know you've made some comments around this already, but I guess just trying to understand your thinking around the buyback as well as some of those value creation strategies, and capacity on the balance sheet to do them as well. Thanks.
Yeah, look, the balance sheet's in a great position to do that. We don't have a constraint there. It really comes down to what those opportunities are. I don't think you're going to find, and we have never been one that's going to win in a straight auction campaign. We win by generally having off-market opportunities and pursuing those and finding those. I think that's going to continue on the acquisition side. We're also progressing quite aggressively a couple of the development opportunities that we spoke about, and I think they'll start to roll out in the second half next year, probably more for the beginning of FY 2027. There's developments there.
In the buyback, I think, you know, if our NTA is up to AUD 2.47, I think now, we will continue to look at the buyback, and I think our NTA will continue to grow based on where the market is at the moment. I'm quite positive about that. There's a number of different avenues there from those growth drivers to achieve that 1%.
Sorry, just about, you gave a guide, I think it was 6% -1 0% yield on completion. Is that a range across the projects or a range within?
No, a range across all the projects. We have some of our solar PV and embedded networks have very high returns, others lower returns. That's not an average of 6%- 10%. That just depends on the mix as it comes through.
What sort of return should we expect, I guess, out of that AUD 50 million there if you weighted it?
Look, the higher returning ones, solar, have sort of come to an end, as we've outlined in our sustainability report. We're sort of at the end, and we're doing a lot more smaller solar projects as opposed to the bigger and embedded networks. Overall, it's going to be more at the bottom end as opposed to the top end of that range.
Thanks a lot. Appreciate your time.
Thank you.
There are no further questions at this time. I'll now hand the call back to Mr. Mellowes for closing remarks. Please go ahead.
Thank you all. I know it's been a very busy day for you all. I hope everyone can get through everything and look forward to seeing you all on our roadshows over the next couple of weeks. Thanks very much. You'll still hear from me in February. Thanks very much and speak soon.