Eureka Group Holdings (EGH) H2 2024 earnings summary

Executive summary

• Achieved 13% revenue growth to $41.1 million and 20% underlying EBITDA growth year-over-year, driven by resident demand, rental growth, and acquisitions.

• Maintained high portfolio occupancy at 98% at year end; completed Brassall development with 51 new dwellings fully leased.

• Underlying EPS of 3.02 cents per share, in line with guidance; dividend increased by 4% to 1.4 cps.

• Valuation uplift of $14.1m, supported by increased village earnings and stable capitalisation rates.

• Statutory net profit after tax was $13.2 million, down from $19.2 million due to lower property revaluations, higher finance costs, and takeover defense expenses.

Financial highlights

• Revenue reached $41.1m, up 13% from FY23; like-for-like revenue growth was 6%.

• Underlying EBITDA rose to $15.2m, a 20% increase from FY23; underlying EBITDA margin improved to 36.9% from 34.6%.

• Underlying profit before tax was $9.1m, up 13% year-over-year.

• Net tangible assets per share increased by 7% to 48.3 cents.

• Assets under management increased by $78 million (31%) year-over-year.

Outlook and guidance

• High demand for affordable seniors rental accommodation expected to sustain high occupancy and drive further acquisitions and developments.

• Growth in underlying EBITDA anticipated from full-year contributions of recent developments and acquisitions.

• Maintainable earnings growth expected to result in further property valuation uplifts.

• Disciplined cost control to mitigate inflationary pressures; hedging strategy in place to manage interest rate uncertainty.

• New CEO Simon Owen to commence 12 September 2024, expected to drive scalability and sustainable growth.