REA Group tops FY26 forecasts but warns of softer listings ahead

REA Group (ASX:REA) has delivered stronger than expected full-year earnings, increased its dividend by 25% and outperformed its own listings guidance, although the property giant expects a more subdued housing market in FY27.

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The operator of realestate.com.au reported core net profit after tax of $650.5 million for FY26, up 15% from a year earlier and ahead of market expectations. Revenue rose 7% to $1.79 billion, while core EBITDA increased 12% to $1.09 billion.

Shareholders will receive a fully franked final dividend of $1.73 per share, taking total FY26 dividends to $2.97 per share.

Despite a challenging housing market, national residential buy listings finished flat for the year, outperforming the company’s earlier guidance for a decline of between 1% and 3%.

REA also achieved 13% growth in Residential Buy yield, driven by continued demand for premium advertising products.

Looking ahead, however, the company expects listing volumes to remain under pressure. It has guided FY27 national residential buy listings to be flat or down by low single digits, with July listings already tracking 2% lower than a year ago.

The weakness has been most pronounced in Sydney and Melbourne, where combined listings fell 16% in July, although Brisbane, Perth and Adelaide recorded 13% growth.

Instead of relying on higher listing volumes, REA plans to drive earnings through pricing. Residential Buy yield is expected to grow at a low double-digit rate in FY27, supported by an 8% increase in Premiere+ pricing and continued uptake of premium advertising products.

Chief executive Cameron McIntyre said the company’s audience remained a key competitive advantage during weaker market conditions: “More Australians trusted realestate.com.au for their property needs than ever before in FY26, with a record 12.7 million average monthly visitors,” he said.

He also highlighted artificial intelligence as a long-term growth opportunity, saying REA’s audience, proprietary data and product pipeline position the business well for future growth, although the company did not disclose any financial contribution from its AI initiatives.

REA also confirmed progress on its international portfolio, with Housing.com in India being sold to Aurum PropTech while retaining a 24.9% shareholding.

The results suggest REA continues to demonstrate strong pricing power despite slowing property activity, but investors will be watching closely to see whether pricing alone can offset softer listing volumes through FY27.

REA Group is up 3.80% today, currently trading at $172.64/sh.

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