This article is from the Australian Property Journal archive
EUREKA Group Holdings Limited (ASX: EGH) saw a dip in profit over FY24, after lower property valuations and increases costs, including those spent on defending Aspen Group Limited’s unsuccessful takeover offer.
EGH’s statutory net profit after tax for FY24 came in at $13.2 million, down from FY23’s $19.2 million result.
The group’s revenue was up 13% to $41.1 million from FY23’s $36.4 million, attributed to strong resident demand, rental growth and acquisitions.
Over the year, underlying EBITDA was also up 20% to $15.2 million from $12.6 million in FY23 and in line with the group’s guidance of between $15.0 million to $15.3 million. This included like-for-like growth in underlying EBITDA of 7%.
Underlying profit before tax was up 13% to $9.1 million from $8.0 million in the previous financial year.
Eureka determined a final dividend of 0.7 cents per share (unfranked), taking the total dividend for FY24 to 1.4 cents per share, compared to 1.34 cents per share in FY23.
“It is pleasing that the underlying EBITDA and earnings per share were in line with guidance and it reflects the quality of our assets and our sustained high occupancy levels across the portfolio,” said Murray Boyte, executive chairman at Eureka.
More than 90% of the group’s property portfolio was independently valued over the year, resulting in a $14.1 million uplift with capitalisation rates remaining stable.
Over the year, the group acquired six villages in Western Australia in December 2023 for $44 million, with an average occupancy exceeding 98%.
“The performance, as well as the strategic acquisition of six villages in Western Australia by the Eureka Villages WA Fund, further enhances Eureka’s value proposition as the pure-play leader in the specialised affordable seniors build to rent sector,” added Boyte.
Acquisitions, developments, capital improvements and revaluations over FY24 resulted in a 31% increase in assets under management to $78 million.
Eureka’s net debt was at $89.1 million, with gearing within the group’s target range at 36.6%.
“Eureka’s stable earnings and cashflow generation has been underpinned by inflation indexed government payments, including pension and rent assistance, to our residents,” said Boyte.
In its results announcement, the group also made note of the costs of defending Aspen’s under-valued take-over bid, which was a major constraint on Eureka’s business during the second half of the financial year.
“Looking ahead, Eureka is set to embark on a new chapter under the leadership of Simon Owen, who will commence in the role of CEO on 12 September 2024. With his experience in leading property and retirement living businesses, I am confident that Simon will build on the momentum already underway in driving scalability across our Australia-wide portfolio in a sustainable way to deliver excellent services to our residents and long-term value for our shareholders,” concluded Boyte.
