Eureka Group Holdings Limited · ASX:EGH
Eureka — Investor Presentation (October 2022)
35 slides from Eureka's investor presentation, Oct 27, 2022
Slide 1: Acquisitions and Equity Raising
For personal use only Acquisitions and Equity Raising October 2022
Slide 2: Contents
Contents For personal use only About Transaction Equity Eureka Overview Raising Contact Appendix Definitions Details 2
Slide 3: About Eureka
For personal use only About Eureka 3
Slide 4: Transaction Summary
Transaction Summary For personal use only • Eureka proposes to acquire two villages (the Acquisitions) for a total purchase price of $11.8 million Village region State Purchase price No. of units EBITDA yield Occupancy Acquisitions 62 Johnston Street, Tamworth NSW $6.7m 50 >8.7% 92% 17 River Road, H
Slide 5: Compelling backdrop to support industry growth
Compelling backdrop to support industry growth A growing ageing population and housing affordability concerns supports demand for affordable seniors rental accommodation For personal use only High +65yrs population growth House prices have grown rapidly Superannuation balances are forecasted1,2 over
Slide 6: Well placed within the seniors living spectrum
Well placed within the seniors living spectrum An affordable accommodation option providing a community environment For personal use only Residential Government social Seniors rental Land Lease Communities Retirement village Aged care home housing ‘Eureka’ Community-based Community-based Community-b
Slide 7: Seniors rental offers compelling yields vs other asset classes
Seniors rental offers compelling yields vs other asset classes An alternative asset class with potential for significant capital upside For personal use only Commentary FY22 Eureka cap rate compared to yields in other sectors • Core Australian commercial property sectors are generally characterised
Slide 8: Delivering on strategic plan
Delivering on strategic plan Eureka’s strategy over the last c.2 years has delivered significant value to investors For personal use only EGH outperformance vs the ASX 200 A-REIT index Increased scale and improving occupancy Rebased to 1.0 Occupancy % 3.00 93% 91% 95% 98% 98% 2.50 1661 2.00 +92.6% 1
Slide 9: Has a meaningful social impact
Has a meaningful social impact Eureka has a strong focus on ESG initiatives across the entire business and portfolio For personal use only Environmental Initiatives Social Focus Governance Practices Developing an environmental program to reduce the impact Philosophies underpinned by compassion, resp
Slide 10: Investing in a high quality team
Investing in a high quality team Well positioned to deliver on future growth objectives For personal use only Executive leadership Recent appointments Murray Boyte Cameron Taylor Laura Fanning Michael Heffernan Andrew Hudson Executive Chair Chief Executive Officer Chief Financial Officer Head of Rea
Slide 11: Significant operating leverage when scale achieved
Significant operating leverage when scale achieved Eureka has invested heavily in enhancing its capabilities across the platform and is now at an inflection point For personal use only $ millions Incremental EBITDA growth vs Investment Property Institutional Investment $166m1 $178m Property scale Re
Slide 12: Transaction Overview
Transaction For personal use only Overview 12
Slide 13: Portfolio enhanced through acquisitions
Portfolio enhanced through acquisitions For personal use only PORTFOLIO SNAPSHOT VILLAGE SPLIT BY VALUE ($m) 1 Pre Acquisitions Post Acquisitions Owned 26 28 164 176 Managed 14 14 Joint Venture 5 5 Increasing weight Total Number of Villages 45 47 in owned villages, 2 achieving further Investment Pro
Slide 14: Strategic rationale for the transactions
Strategic rationale for the transactions For personal use only • Acquisitions are aligned with Eureka’s portfolio objectives to acquire high-quality sites On strategy located in key regional cities 1 acquisitions • Acquisitions demonstrate Eureka’s platform capability of sourcing quality off-market
Slide 15: Johnston St, Tamworth NSW
62 Johnston St, Tamworth NSW For personal use only DESCRIPTION • Asset is situated in Tamworth, NSW located c.4-5 hours from Sydney and other major regional hubs such as Orange and Grafton • Comprises 50 units split between single and couples accommodation across low maintenance, ground level units
Slide 16: River Road, Horsham VIC
17 River Road, Horsham VIC For personal use only DESCRIPTION • Asset is situated in Horsham, VIC located c.3.5 hours from Melbourne • Comprises 46 units split between single and couples accommodation across low maintenance, ground level units • Gated community that is in close proximity to public tr
Slide 17: 1380 Warrego Highway, Brassall QLD
1380 Warrego Highway, Brassall QLD Near term development opportunity For personal use only DESCRIPTION • Eureka will commence the development of its village in Brassall, QLD in early 2023 • Village was acquired in July 2021 and comprises 43 rental residences, 12 land lease residences and surplus dev
Slide 18: Equity Raising
For personal use only Equity Raising 18
Slide 19: Equity Raising Summary
Equity Raising Summary For personal use only • Fully underwritten 1 for 4 accelerated non-renounceable pro-rata entitlement offer to raise $28.2 million (the Entitlement Offer) Equity Raising • The Entitlement Offer will comprise an accelerated Institutional Entitlement Offer and a Retail Entitlemen
Slide 20: Sources and Uses of Proceeds
Sources and Uses of Proceeds For personal use only Sources of Proceeds $m • Equity Raising will raise approximately $28 million Equity Raising Proceeds 28.2 • The Equity Raising will fund the Tamworth and Horsham acquisitions, Brassall Total sources 28.2 development and associated transaction costs
Slide 21: Pro Forma Balance Sheet
Pro Forma Balance Sheet Pro forma gearing to reduce to 32.7% post raise For personal use only Shares issued post 30-Jun-22 Equity Raise and 30-Jun-22 Eagleby1 Pro forma balance date2 Pro forma Acquisitions3,4 Cash [$m] 1.8 - 1.5 3.3 - 3.3 Investment properties [$m] 159.7 6.5 - 166.2 11.8 178.0 JV in
Slide 22: Equity Raising Indicative Timetable
Equity Raising Indicative Timetable For personal use only Key event Date 2022 Trading halt and announcement of the Equity Raising Thursday, 27 October Institutional Entitlement Offer launch Thursday, 27 October Announcement of results of Institutional Entitlement Offer Friday, 28 October Trading hal
Slide 23: Appendix
For personal use only Appendix 23
Slide 24: Key Risks
Key Risks For personal use only General Risks This section discusses some of the key risks associated with an investment in Eureka. A number of risks and uncertainties may adversely affect the operating and financial performance or position of Eureka and in turn affect the value of Eureka shares. Th
Slide 25: Key Risks
Key Risks For personal use only Turnover of Eureka shares can be limited and it may be difficult for investors to buy or sell lines of shares at market prices. In response to market conditions or for other reasons, ASX may amend temporarily or permanently, rules relating to the issue or trading of s
Slide 26: Key Risks
Key Risks For personal use only Eureka undertakes property development. Such projects have a number of risks including (but not limited to): delays or issues around planning, application and regulatory approvals; development cost overruns; environmental costs; project delays; issues with building an
Slide 27: Key Risks
Key Risks For personal use only Eureka currently has bank debt which contains certain financial and operational covenants. Any breach of these covenants could result in the early enforced repayment of debt. Such repayment could incur capital losses if assets need to be sold in a short period or shar
Slide 28: International Restrictions
International Restrictions For personal use only Offer Restriction Legend for Canada This document constitutes an offering of New Shares only in the Provinces of British Columbia, Ontario and Quebec (the "Provinces"), only to persons to whom New Shares may be lawfully distributed in the Provinces, a
Slide 29: Underwriting Agreement Summary
Underwriting Agreement Summary For personal use only Underwriting Agreement Summary Eureka has entered into an Underwriting Agreement with MA Moelis Australia Advisory Pty Ltd ACN 097 241 159 (MA Moelis) and Taylor Collision Limited ACN 008 172 450 (Taylor Collision) (Joint Lead Managers) in respect
Slide 30: Underwriting Agreement Summary (continued)
Underwriting Agreement Summary (continued) For personal use only • A Closing Certificate which is required to be furnished by Eureka under the Underwriting Agreement is not furnished when required. • A change to the members of Senior Management or to the non-executive directorship of Greg Paramor AO
Slide 31: Underwriting Agreement Summary (continued)
Underwriting Agreement Summary (continued) For personal use only • The content in the Closing Certificate (which is required to be furnished by Eureka) is untrue or incorrect. • There occurs a new circumstance that arises after the ASX Materials were given to the ASX that would have been required to
Slide 32: Definitions
Definitions For personal use only Balance sheet 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, as
Slide 33: Disclaimer
Disclaimer For personal use only Purpose Accuracy of projections and forecasts This presentation (Presentation) is dated 27 October 2022 and has been prepared by Eureka Group Holdings Limited (ABN 15 097 241 159) (Eureka). This Presentation has been prepared in relation to a fully This Presentation
Slide 34: Disclaimer (continued)
Disclaimer (continued) For personal use only Joint Lead Managers Eureka, for which they received or will receive customary fees and reimbursement of expenses. The Joint Lead Managers and their respective affiliates and related bodies corporate may purchase, sell or hold a Eureka has engaged the Join
Slide 35: Contact details
Contact details Eureka Group Holdings Limited For personal use only ABN 15 097 241 159 REGISTERED ADDRESS Suite 2D, 7 Short Street Southport QLD 4215 BRISBANE OFFICE Level 5, 120 Edward Street Brisbane QLD 4000 POSTAL PO Box 10819 Southport BC QLD 4215 T: 07 5568 0205 E: info@eurekagroupholdings.com
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