Eureka Group Holdings reported a 23% increase in underlying profit before tax to AUD 14.7 million for the fiscal year ended 2026, driven by a 32% rise in rental income to AUD 44.9 million. Revenue grew 24% year-over-year to AUD 56.7 million, with underlying earnings before interest, tax, depreciation and amortisation (EBITDA) up 29% to AUD 21.7 million, exceeding guidance by AUD 600,000 at the top end.
Underlying earnings per share increased 10% to 3.45 cents, surpassing the upper end of guidance by 0.3%. Operating cash flow surged 41% to AUD 15.2 million, while the full-year dividend was set at 1.46 cents per share, including a final dividend of 0.73 cents. The company maintained a conservative loan-to-value ratio of 34.2%, below its internal 40% ceiling and bank covenant of 55%, with an interest coverage ratio of 3.5 times.
The portfolio expanded by 26% during the year, adding 937 homes and sites, with Western Australia and Queensland accounting for 67% of assets. Occupancy rates reached 97% in seniors rental housing and improved to 95% in all-age communities from 87% six months prior. Same-store rent growth was reported at 6%, while segment EBITDA margins were 52% for seniors rental and 53% for all-age platforms.
Eureka completed seven property acquisitions in FY 2026 at an average cost of AUD 86,000 per site, yielding 8.1% on a weighted average basis. The company’s acquisition pipeline exceeds AUD 120 million, with a recent off-market purchase of the Sunset Beach Holiday Park and Lifestyle Village in Geraldton, Western Australia, for AUD 16.8 million. The transaction is expected to deliver a 10% ingoing yield and a targeted 17% five-year internal rate of return, with local vacancy at 1.1% and rent growth of 19.4% over the past year.
Management highlighted modular construction as a key growth lever, with over 200 prefabricated homes contracted for FY 2027 across eight communities. These units, priced between AUD 150,000 and AUD 180,000, are projected to yield more than 12.5%, compared with average Australian attached-dwelling costs of AUD 637,000 excluding land and financing. The company aims to expand its portfolio to more than 6,000 homes within two to three years and lift operating margins toward 40%.
For FY 2027, Eureka guided to underlying EPS of at least 3.9 cents, implying growth of 13% over FY 2026, supported by AUD 50 million in acquisitions and 150 new modular rental homes. The cost of debt is expected to rise to 6.4%-6.5% in FY 2027 from 6.1%-6.2% in FY 2026.
