Eureka Group Holdings Limited · ASX:EGH
Eureka — Investor Presentation (August 2023)
32 slides from Eureka's investor presentation, Aug 29, 2023
Slide 1: FY23 Results Presentation
FY23 Results Presentation August 2023
Slide 2: Contents
Contents FY23 About Operational Highlights Eureka Performance Capital Strategic Management Appendix Priorities 2
Slide 3: FY23 Highlights
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Slide 4: FY23 Highlights
FY23 Highlights Revenue and earnings growth driven by strong resident demand, rental growth and property valuations $36.4m $12.6m $19.2m 45.0 cents Revenue Underlying EBITDA1 Profit after tax NTA per share 22% FY22 19% FY22 134% FY22 18% FY22 Like-for-like revenue Like-for-like village EBITDA growth
Slide 5: Portfolio Summary
Portfolio Summary Eureka operates a pure play, specialist strategy of providing affordable seniors rental accommodation GEOGRAPHIC OVERVIEW PORTFOLIO SNAPSHOT 46 QLD Villages 2,551 $229m $139m Investment property Units under value1 management $172m FY22 2,507 units FY22 99% 8.3% Occupancy WACR3 NSW
Slide 6: Segment information
Segment information Solid contributions from all segments Unit numbers Village contributions1 Asset values at 30 June 2023 (excluding revaluations) at 30 June 2023 FY23 FY22 $16M $6M 254 $16.7M $14.4M 721 2,551 units 1,576 $213M $2.4M $1.6M $1.2M $1.1M Owned Managed Joint Venture (50%) Owned Managed
Slide 7: Underlying EBITDA
Underlying EBITDA1 Continued Underlying EBITDA growth, with margins expected to improve 40% 38.3% $14m 35.3% 35.1% 34.6% 35% 33.7% $12m 30.8% 30% $10m 26.2% 25% Underlying EBITDA 1 $8m 20% $6m 15% $4m 10% $2m 5% $m 0% FY17 FY18 FY19 FY20 FY21 FY22 FY23 1H 2H Underlying EBITDA margin 1. Refer Definit
Slide 8: Key achievements
Key achievements Eureka has a sound financial base, a sustainable business model and significant growth opportunities Strong results ✓ Portfolio value uplift ✓ Acquisitions and developments ✓ Capital management ✓ Resident-first approach ✓ Strengthened management team ✓ 8
Slide 9: Sustainability
Sustainability Resident first philosophy enhances resident experience, creating sustainable value for shareholders Initiatives Achievements Targets / Focus Environment Solar power • Solar power to be implemented in a further 7 Developing an Commitment to energy conservation through a villages in CY2
Slide 10: About Eureka
About Eureka 10
Slide 11: A scaled, affordable build-to-rent seniors living portfolio
A scaled, affordable build-to-rent seniors living portfolio Upside from organic growth, acquisition and targeted development strategy Who is Eureka? ✓ ✓ ✓ ✓ ✓ 11
Slide 12: Eureka's build-to-rent portfolio is well positioned
Eureka’s build-to-rent portfolio is well positioned A leading provider of affordable accommodation within the seniors living spectrum Residential Government social Seniors rental Land lease communities Retirement village Aged care home housing ‘Eureka’ Community-based Care services available Advance
Slide 13: 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 Commentary Payments backed by Government Age pension payments Rent assistance payments Rental payments Accommodation and catering services 1. Services Au
Slide 14: A growing ageing population with limited superannuation
A growing ageing population with limited superannuation Industry trends provide strong tailwinds for seniors rentals Australians aged 65+ years old1,2,3 Seniors superannuation balances are low # Millions Superannuation balances ($k)4,5 People with no superannuation (%)6 5.6 $690k 5.4 5.2 $595k 4.8 4
Slide 15: Future demand supported by favourable industry trends
Future demand supported by favourable industry trends House prices in capital cities1 Median weekly rent2 Rebased to 100 $ per week 190 QLD NSW VIC SA Median $700 180 $650 170 160 $600 150 $550 140 $500 130 $450 120 $400 110 100 $350 90 $300 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Jan
Slide 16: Operational Performance
Operational Performance 16
Slide 17: Portfolio diversified across owned, JV and managed units
Portfolio diversified across owned, JV and managed units Commentary • Eureka’s core portfolio comprises 1,576 owned units Portfolio statistics FY23 FY22 Change and 254 units held in a 50% Joint Venture. Owned unit numbers increased by 13% during FY23 due to Owned units [#] 1,576 1,392 184 acquisitio
Slide 18: Investment properties
Investment properties Portfolio enhanced by active management Commentary Strong portfolio growth2 driven by acquisitions and valuations Investment property value ($m) • A ‘whole of portfolio’ valuation was completed in 2H23 • Net increase in investment property values of $57m or 33%, including: • Va
Slide 19: Acquired 3 villages and 37 individual units
Acquired 3 villages and 37 individual units Disciplined acquisition strategy Completed acquisitions Acquisition objectives $7.3m acquisition1 55 units plus management rights settled September 2022 Eagleby, QLD $6.7m acquisition 50 units settled November 2022 Tamworth, NSW $5.1m acquisition 46 units
Slide 20: Development strategy – building long term value
Development strategy – building long term value Committed to growing the portfolio via greenfield and brownfield development opportunities Commenced Pipeline Brassall, QLD Future development strategy Home design Site development locations Low set garden villages Self-catered & hybrid product village
Slide 21: Capital Management
X. : S ae Capital Management
Slide 22: Robust capital management
Robust capital management Capital management planning provides optionality for future funding requirements Commentary Key debt metrics FY23 FY22 • Balance sheet gearing reduced from 40.8% at 30 June 2022 Facility limit [$m] 83.0 77.5 to 32.1% following completion of $28.2 million Entitlement Drawn a
Slide 23: Dividends
Dividends Consistent returns to shareholders since commencement of paying dividends Dividends Key dates Dividend track record (cps) FY23 final dividend Ex-dividend date 0.67 0.67 0.63 0.63 21 September 2023 0.67c per share 0.55 0.55 0.59 0.59 Record date • Dividend reinvestment plan (DRP) operative
Slide 24: Strategic Priorities
Strategic Priorities 24
Slide 25: FY24 Strategic priorities
FY24 Strategic priorities Building long term value via a disciplined growth plan, backed by a resident first philosophy Resident experience initiatives Portfolio management Capital management People Technology Brand repositioning Sustainability 25
Slide 26: Appendix
Appendix 26
Slide 27: Profit and loss
Profit and loss ($ '000) 30-Jun-23 30-Jun-22 • Profit after tax increased by 134% to $19.2m Rental income 24,795 20,395 Catering income 5,533 4,842 • 22% increase in total revenue driven by like-for-like Service and caretaking income 6,092 4,512 village growth (10%) and acquisitions Total revenue 36
Slide 28: Balance sheet
Balance sheet • Strong balance sheet with financial capacity for ($ '000) 30-Jun-23 30-Jun-22 expansion Assets • Completed $28.2m capital raise to fund acquisitions, Cash and cash equivalents 1,815 1,837 expand the Brassall village and retire debt Trade, other and loans receivable 499 1,138 • Balanc
Slide 29: Cash flow statement
Cash flow statement ($ '000) 30-Jun-23 30-Jun-22 • Reliable operating cash flows Cash flows from operating activities • Net cash from operating activities was $8.7m Receipts from customers 36,964 29,386 (+5% on pcp) Payments to suppliers and employees (25,777) (21,073) • Acquisition of new villages
Slide 30: Definitions
Definitions 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, asset disposals and cert
Slide 31: 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 32: Contact details
Contact details Eureka Group Holdings Limited 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 07 5568 0205 info@eurekagroupholdings.com.au eurekagroupholdings.com.
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