Eureka Group Holdings (EGH) investor relations material

Deal rationale and strategic fit

• Acquisition of six established lifestyle and mixed-use communities in NSW for $123.8 million expands the portfolio by 21% to 5,492 sites and increases AUM by 23% to $666 million.

• Raises NSW exposure from 8% to 24% and establishes a significant presence in Greater Sydney, a high-rent market.

• Aligns with strategy to acquire established communities at attractive yields, targeting recurring income streams with 71% permanent sites.

• Addresses structural undersupply in affordable rental housing, leveraging demographic trends and market demand.

Financial terms and conditions

• Purchase price is $123.8 million for 953 sites across six communities, with an ingoing yield of 8.1% and a forecast five-year unlevered IRR of 15%.

• Funded by a fully underwritten $80.2 million equity raising at $0.615 per share and new debt facilities, with $53.6 million allocated to the acquisition and $26.4 million for future growth.

• Equity raising via a 1 for 3.29 accelerated non-renounceable entitlement offer, issuing approximately 130.4 million new shares (30.4% of existing shares) at a 0.4% discount to 5-day VWAP.

• Pro forma gearing increases to 37.0% post-acquisition and market capitalisation rises to $342 million.

Synergies and expected cost savings

• Immediate earnings accretion from income-producing assets, with FY27 underlying EPS guidance upgraded by 22% over FY26 and 8% above previous guidance.

• Upside potential through operating efficiencies, infill and densification, conversion of tourism inventory, and selective capital recycling.

• Value creation plans include staffing optimisation, home refurbishments, and amenity upgrades.

• Forecast five-year unlevered IRR of 15% and ingoing yield of 8.1%.