Eureka Group Holdings (EGH) H1 2025 earnings summary

Executive summary

• Revenue grew 11% to $22.6m for 1H25, with underlying EBITDA up 16% to $8.2m, driven by strong resident demand, rental growth, and asset acquisitions.

• Statutory net profit after tax was stable at $6.36m due to lower property revaluations.

• Portfolio occupancy remained high at 97%–97.3%, with 31 communities at full occupancy and waitlists.

• Completed transformative $70.4m capital raise to fund acquisitions, developments, and debt reduction.

• Expanded into all-age affordable rental market, significantly increasing addressable market size.

Financial highlights

• 1H25 revenue of $22.6m, up 11% on 1H24; underlying EBITDA of $8.2m, up 16%; underlying profit before tax of $5.4m, up 25%.

• Underlying EPS of 1.57 cps (from 1.44 cps 1H24); reported EPS of 1.86 cps (from 2.09 cps 1H24).

• Dividend of 0.73 cps, up 4% on 1H24; NTA per share increased 8% to 52.3 cents.

• Net cash from operating activities was $1.2m, down 67% year-over-year due to one-off costs and timing of payments.

• Net assets increased to $229.3m (from $154.2m at June 2024); cash and cash equivalents rose to $3.25m.

Outlook and guidance

• FY25 underlying EBITDA growth revised to ~11% on FY24; underlying EPS growth revised to ~2.6% on FY24 due to minor transactional delays and occupancy softness.

• Fully deployed pro forma underlying EPS growth of at least 19% on FY24 remains unchanged.

• Pipeline of over $100m in accretive acquisitions under assessment; funds from capital raise expected to be fully deployed in CY2025.

• Further investments planned in the all-age affordable rental market.

• Focus on operational efficiencies, cost reduction, and capital recycling through divestment of non-core assets.