Eureka Group Holdings (EGH) Investor Presentation summary

Strategic rationale and growth strategy

• Acquisitions and expansions will increase units under management by 13.5%, reinforcing Eureka’s position as Australia’s largest owner, operator, and developer of seniors’ rental communities.

• 441 units across 7 villages and 38 single units targeted for acquisition, with $49.9m expected investment and $7.5m in expansion opportunities.

• Acquisitions focus on high-quality, stabilised assets in major metro and key regional markets, especially Queensland, with immediate yields averaging 9.6% per annum.

• Sector benefits from strong macro tailwinds: ageing population, constrained supply, high demand, and government support for affordable accommodation.

• Organic growth through individual unit acquisitions, village expansions, and platform efficiencies, with a disciplined approach to capital recycling and divestment of non-core assets.

Equity raising and capital management

• $70.4m fully underwritten equity raising at $0.61 per share, comprising a $55.4m entitlement offer and $15.0m institutional placement, representing 37.4% of total shares on issue.

• New shares issued at a 7.2%–9.6% discount to recent trading prices.

• Major shareholders, directors, and CEO committed to full entitlement uptake; Non-Executive Director sub-underwriting up to $1m with no fees.

• Institutional entitlement offer to raise $48.8m; retail offer to raise $6.6m, with oversubscription facility for retail investors.

• Proceeds will fund acquisitions, expansion, transaction costs, and debt retirement, with funds expected to be fully deployed within 9–12 months.

Financial impact and outlook

• FY25 underlying EBITDA expected to grow at least 16% and underlying EPS at least 8% on FY24; fully deployed pro forma EPS growth of at least 19%.

• Pro forma NTA per share increases to $0.501 (up 3.8% from June 2024), with portfolio value rising to $333m (22% increase).

• Pro forma gearing reduced to 26.7% (from 36.6%), below the 30–40% target range, providing capacity for future growth.

• Occupancy remains high at 98%, with strong demand in Queensland and only one vacancy forecast in over 1,400 units.

• FY25 same unit rent growth expected at 5–7%, supported by a 4.1% pension increase and ongoing supply-demand imbalance.