Eureka’s budget build-to-rent portfolio distinguished itself with a healthy 33 per cent increase in its portfolio valuation to $229 million, a contrast to the asset write-downs experienced by many of its larger peers.
Retirement village operator Eureka Group’s focus on the affordable end of the market, with a portfolio heavily weighted to Queensland, is paying off for its investors, with a 22 per cent lift in revenue to $36.4 million for the 2023 financial year.
Driving that valuation uplift were increased village earnings along with a tighter capitalisation rate – an industry metric akin to an expected investment yield – which fell to 8.3 per cent from 9.4 per cent. Executive chairman Murray Boyte said Eureka’s platform – with 2551 units under management and an occupancy rate of 99 per cent – had undergone substantial restructuring over the past 18 months.Three new villages had been acquired, adding 151 units to the portfolio, while two under-performing villages were sold. A new 51-unit village at Brassall, near Ipswich, is under construction.
The fact that pension payments have CPI-linked indexing also gives Eureka’s revenue a measure of protection against inflation, Mr Boyte said.
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