Eureka Group upgrade guidance with occupancy at 98% in “majority of villages”

The Queensland-based affordable rental owner/operator has upgraded its FY23 Underlying EBITDA (earnings before interest, taxes, depreciation, and amortisation) guidance to $12.2 million - $12.5 million representing annual growth of 16% - 19% over the prior year. It exceeds the previous FY23 Underlying EBITDA guidance of $11.8 million - $12.1 million.   

Executive Chairman Murray Boyte also said draft independent valuations of Eureka’s 29 villages, including five held jointly, indicate a net uplift of $17.5 million from 31 December 2022 book values. 

“The upgraded FY23 Underlying EBITDA guidance reflects the Group maintaining high occupancy and receiving the benefit of strong demand and rental growth, underpinned by CPI adjustments and government rental support,” said Murray in a statement. “The valuation uplift demonstrates Eureka's strategy in the independent senior living segment of the affordable Build To Rent (BTR) sector being recognised by independent valuation. “We are well positioned to continue to deliver the benefits of executing our growth strategy in FY24 and beyond, through organic growth in rent, strategic development and expansion projects and the deployment of new technology.  Eureka continues to experience strong demand and levels of enquiry, evidenced by an occupancy rate exceeding 98% in the majority of its villages.”

Eureka said stage one of its $11 million Brassall expansion in south-east Queensland, comprising 10 of the 51 homes, is on track for completion by 31 July.  Rental agreements for 31 homes have already been secured at an average rent in line with or above projected levels.    Eureka’s principal lender NAB has extended the Group’s $83 million debt facility through to 31 March 2026.