Australia’s ASX-listed rental housing specialist Eureka Group Holdings Ltd. (ASX: EGH) reported a 29% increase in underlying EBITDA to $21.7 million for the fiscal year ended June 2026, exceeding its guidance range of $20.2–$21.1 million.
Underlying earnings per share rose 10% year-over-year to 3.45 cents, also surpassing the company’s forecast of 3.37–3.44 cents. Revenue climbed 24% to $56.7 million, while operating cash flow surged 41% to $15.2 million. Net tangible assets per share increased 4.9% to 57.7 cents, and the dividend was maintained at 1.46 cents per share.
The company added 937 homes and sites through acquisitions in FY26, expanding its portfolio to 2,659 seniors rental homes across 49 villages and 1,357 all-age rental sites across 15 locations. Portfolio settlements totaled seven properties for approximately $80 million at an 8.1% weighted average yield. Three additional acquisitions worth $43.8 million were announced for FY27, with the acquisition pipeline exceeding $120 million.
Occupancy rates stood at 97% for seniors properties and 95% for all-age rentals, up from 86% six months earlier. All-age rental sites grew 211% year-over-year to 1,357, while average rents reached $980 per fortnight for seniors properties and $708 for all-age rentals. Underlying EBITDA margins expanded to 38.2% from 34.6% in FY23, with overheads declining to 20.9% of revenue.
Eureka guided FY27 underlying EPS to at least 3.9 cents, representing growth of at least 13% from FY26, assuming $50 million in acquisitions and the delivery of 150 new modular rental homes alongside 50 late-delivered units. The cost of debt is projected to rise to 6.4–6.5% in FY27 from 6.1–6.2% in FY26.
The company targets 6,000+ homes within two to three years, including 829 homes from its development pipeline, 1,396 from acquisitions, and 241 units from non-core divestments. Its modular construction program aims for 150–200 new homes annually, with off-site modules delivered in roughly three months. Development costs in Western Australia are approximately 25% higher than in Queensland and Victoria.
Eureka closed an unlisted all-age rental fund in August 2026 with $28.85 million in assets under management at 50% leverage and a 31% co-investment. Drawn debt rose to $137.2 million against a $185 million facility limit, resulting in a loan-to-value ratio of 34.2%. The interest coverage ratio stood at 3.5 times, above the 2.0 times covenant requirement. Social loans totaled $180 million, with a $200 million accordion facility available. Interest rate hedging increased to 29% of debt by July 31, targeting 30–50% coverage.
