Eureka Group Holdings Limited · ASX:EGH
Eureka — Investor Presentation (February 2025)
38 slides from Eureka's investor presentation, Feb 25, 2025
Slide 1: 1H25 Results Presentation February 2025
1H25 Results Presentation February 2025 Simon Owen Chief Executive Officer
Slide 2: Contents
Contents Portfolio Capital Highlights About Eureka Review Management Trading Update & Financial Appendix Guidance Information 2
Slide 3: Highlights
Highlights
Slide 4: Key achievements
Key achievements Growth in underlying financial performance and transformative $70.4 million capital raise Solid results Operational Focus Acquisitions and developments Capital management Refreshed Board and management team 1. Refer to page 27 for adjustments to derive underlying EBITDA and page 30
Slide 5: 1H25 Highlights
1H25 Highlights Revenue and earnings growth driven by strong resident demand, rental growth and property valuations $5.4m $4.6m $22.6m $8.2m Underlying profit Revenue Underlying EBITDA1 Valuation uplift before tax1 11% 1H24 16% 1H24 from $5.6m 1H24 24% 1H24 Continued growth in investment Like-for-li
Slide 6: Growing portfolio of seniors and all-age rental communities
Growing portfolio of seniors and all-age rental communities Eureka is highly weighted to the fast-growing Queensland market NATIONAL FOOTPRINT (as at 31 December 2024) PORTFOLIO SNAPSHOT (as at 31 December 2024) 53 2,872 $351m Villages Assets under management Units under management QLD $174m 97% $29
Slide 7: Village portfolio analysis
Village portfolio analysis Unit numbers Village Contribution1 Asset values at at 31 December 2024 (excluding revaluations) ($m) 31 December 2024 ($m) 1H25 1H24 49 321 11.0 254 9.6 34 2,872 5 351 577 1,720 263 1.3 Owned units Management rights Owned Managed 1.1 0.7 0.7 0.3 Joint venture units Managed
Slide 8: Underlying EBITDA
Underlying EBITDA Continued Underlying EBITDA growth, with margins improving $20m 40% 36.9% 38.3% 35.3% 34.6% $18m 35.1% 35% 33.7% $16m 30.8% 30% $14m 26.2% 25% Underlying EBITDA 1 $12m $10m 20% $8m 15% $6m 10% $4m 5% $2m $m 0% FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 1H 2H 2H Minimum Guidance U
Slide 9: About Eureka
About Eureka 9
Slide 10: Building Blocks of EPS Growth over next three years
Building Blocks of EPS Growth over next three years EPS Growth driven by organic growth and external opportunities 31 Eureka villages are 100% occupied with waitlists. Majority of vacant units concentrated across 7 Occupancy >98% occupancy villages >95% of Eureka’s seniors residents receive governme
Slide 11: Seniors' rental offers compelling yields
Seniors’ rental offers compelling yields Eureka is trading at compelling yields with potential for significant valuation upside FY24 Eureka Cap Rate vs. Comparative Sector Yields 8.17% 7.53% 6 • Core property sectors have experienced cap rate 154 bps 230 bps 64 bps expansion over the past two years,
Slide 12: All-age Rental Communities
All-age Rental Communities High Growth Expansion Opportunity • Eureka has recently expanded into all-age rental communities building upon our sector leadership in over 50's rentals • Targeting essential service workers, hi-vis trades and active retirees in high employment regional and outer-metro ma
Slide 13: Portfolio Review
Portfolio Review 13
Slide 14: Portfolio Summary
Portfolio Summary • Eureka’s core portfolio comprises 1,720 owned units and Portfolio statistics 1H25 FY24 Change 254 units held in a 50% Joint Venture Owned units [#] 1,720 1,640 80 • Eureka has a 27% interest in, and manages, 321 units in the JV units [#] 254 254 - WA fund with a total investment
Slide 15: Capital raise and deployment of funds
Capital raise and deployment of funds Progressing acquisition and development opportunities to scale quickly Capital raise overview Acquisitions & Developments Strong deal flow and execution capability 15
Slide 16: Mount Barker, SA
Mount Barker, SA Boutique over 50s rental village in the Adelaide Hills, South Australia • Acquisition completed in December 2024 • 55 units with occupancy of 94% on acquisition • Ingoing yield of 9.2% • Purchase price of $10.3m • Focus on growing occupancy and rents and modest refurbishments as uni
Slide 17: Kin Kora Acquisition - Gladstone
Kin Kora Acquisition - Gladstone Mixed-use Residential Home Village and Caravan Park • Located in high employment market of Gladstone on Central Queensland Coast • At acquisition 19 manufactured homes (residents rent land), 13 cabins and 77 caravan sites • Ingoing yield of 9.2% with significant earn
Slide 18: Asset Recycling
Asset Recycling Active portfolio management to improve yields and operational efficiency • Mount Gambier (South Australia) community divested in January 2025 for $5.0m at marginal discount to 30 June 2024 book value ($5.1m) • Further $25-30m of asset sales planned over next 12 months • Looking to di
Slide 19: Capital Management
Capital Management EE IND)
Slide 20: Capital management
Capital management Optionality for future funding requirements • Core $101m bank facility in place until March 2026, with no Key metrics 1H25 FY24 principal repayments required until expiry Cash [$m] 3.3 2.3 • Gearing of 13.5%, well below target range of 30% to 40% Debt [$m] 39.1 91.3 following $70.
Slide 21: Dividends
Dividends Consistent returns to shareholders since commencement of paying dividends Dividends Key dates Dividend track record (cps) 1H25 Interim dividend Ex-dividend date 3 March 2025 0.73c per share 0.67 0.67 0.70 0.70 0.73 Record date 0.63 0.63 • Dividends paid from 0.55 0.55 0.59 0.59 sustainable
Slide 22: Trading Update and Guidance
Trading Update and Guidance 22
Slide 23: Trading Update
Trading Update Occupancy levels remain at 97% with macro tailwinds underpinning future demand; strong acquisition pipeline • Occupancy presently tracking at 97% - some weakness in regional Victoria, New South Wales and Eureka’s rental villages continuing to Tasmania deliver stable cashflows • Pensio
Slide 24: Guidance
Guidance • Fully deployed1 pro forma Underlying EPS growth of at least 19% on FY24 remains unchanged • Proceeds from the November 2024 capital raise and disposal of the Mount Gambier village expected to be fully deployed in CY2025 • Minor transactional delays in closing certain deals, the Mount Gamb
Slide 25: Board Succession
Board Succession Eureka’s board and management are well positioned to deliver on future growth objectives • Relative trading New Chairman Appointment Board Succession • Russell is an experienced company director, skilled • Carolyn has over 30 years' experience in Financial Services and Real in finan
Slide 26: Financial Information
Financial Information 26
Slide 27: Profit and loss
Profit and loss ($ '000) 31-Dec-24 31 Dec-23 Change • Underlying EPS of 1.57 cps Rental income 16,496 14,286 • 11% increase in total revenue driven by like-for-like village Revenue from contracts with customers 6,061 5,986 growth (8%) and acquisitions Total revenue 22,557 20,272 11% • 16% growth in
Slide 28: Balance sheet
Balance sheet ($ '000) 31-Dec-24 30-Jun-24 • Net tangible assets per share grew by 8% to 52.3 Assets cents Cash and cash equivalents 3,254 2,257 • Rent is paid fortnightly in advance resulting in Trade and other receivables 824 741 minimal trade receivables and working capital Investments accounted
Slide 29: Cash flow statement
Cash flow statement ($ '000) 31-Dec-24 31-Dec-23 Cash flows from operating activities • Net cash from operating activities was $1.2m Receipts from customers 22,740 19,597 (-67% on pcp). Payments to suppliers and employees (18,712) (14,035) Distributions received 715 300 • Current period cash flow fr
Slide 30: Definitions
Definitions Balance sheet gearing or Gearing Underlying EBITDA Calculated as net debt (being interest-bearing drawn debt net of cash) divided An unaudited non-IFRS measure that represents the operating performance by net debt plus equity of the Group and excludes valuation adjustments, asset disposa
Slide 31: Appendix
Appendix 31
Slide 32: Eureka's build-to-rent portfolio is well positioned
Eureka’s build-to-rent portfolio is well positioned A leading provider of affordable accommodation for independent seniors living Seniors rental Residential home Government social housing Land lease communities Retirement village Aged care ‘Eureka’ Community-based independent Care services available
Slide 33: Cash flows backed by the Australian Government pension
Cash flows backed by the Australian Government pension Government backed age pension and rent assistance payments support Eureka’s revenue streams for over 50’s rentals Commentary Payments backed by Government Age pension payments Rent assistance payments Rental payments Accommodation and catering s
Slide 34: A growing ageing population with limited superannuation
A growing ageing population with limited superannuation Limited independent community living options for seniors on the age pension Australians aged 65+ years old1,2 Seniors superannuation balances are low # Millions 5.8 Superannuation balances ($k)4 People with no superannuation (%)3 5.6 5.2 $690k
Slide 35: Affordable rental offers significant growth opportunities
Affordable rental offers significant growth opportunities Shares many attributes with residential land lease communities 10 years ago TARGET KEY REGIONAL MARKETS GOVERNMENT-SUPPORTED REVENUE GOVERNMENT FUNDING SUPPORTS • Many seniors/downsizers moving to • Seniors renting in a village have a stable
Slide 36: Future demand supported by favourable industry trends
Future demand supported by favourable industry trends A growing reliance on the Government age pension and high demand for low-cost, quality rental accommodation Average property prices in capital cities1 Median weekly rent2 Rebased to 100 $ per week $750 220 210 $700 200 $650 190 $600 180 170 $550
Slide 37: Disclaimer
Disclaimer No responsibility for contents of presentation No offer to sell or invitation to buy To the maximum extent permitted by law, Eureka Group Holdings Limited This Presentation does not, and should not be considered to, constitute or form (ABN 15 097 241 159), its officers, advisers and repre
Slide 38: Contact details
Contact details Eureka Group Holdings Limited ABN 15 097 241 159 REGISTERED OFFICE Level 5, 120 Edward Street Brisbane QLD 4000 POSTAL ADDRESS GPO Box 2245 Brisbane QLD 4000 07 2145 6322 info@eurekagroupholdings.com.au eurekagroupholdings.com.au ENQUIRIES Simon Owen, Chief Executive Officer Laura Fa
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