Eureka Group Reports $20 Million Net Profit, Upsizes Debt Facility to $185 Million
Eureka Group Holdings Limited has reported a robust financial year ending June 2025, with net profit soaring 51.9% and a strategic portfolio expansion in seniors and affordable rental accommodation.
- Net profit after tax rises 51.9% to $20.06 million
- Revenue increases 11.3% to $45.79 million
- Underlying EBITDA grows 11.0% to $16.86 million
- Portfolio expanded with multiple acquisitions in Queensland and New South Wales
- Debt facility upsized and refinanced to $185 million with multi-year maturities
Strong Financial Performance
Eureka Group Holdings Limited has delivered a standout financial performance for the year ended 30 June 2025, with revenue climbing 11.3% to $45.79 million and net profit after tax surging 51.9% to $20.06 million. Underlying EBITDA also rose solidly by 11.0% to $16.86 million, underscoring the company’s operational strength in the seniors and affordable rental accommodation sector.
Basic earnings per share increased by nearly 20% to 5.24 cents, reflecting improved profitability and efficient capital management. The company declared a final dividend of 0.73 cents per share, fully unfranked, with a Dividend Reinvestment Plan (DRP) available to shareholders.
Portfolio Expansion and Strategic Acquisitions
The Group continued its growth trajectory through strategic acquisitions and developments. Key additions include mixed-use residential villages and caravan parks across Queensland and New South Wales, notably in Gladstone, Cairns, Mount Barker, and the Central Coast. The completion of a 51-unit expansion in Brassall, Queensland, further bolstered the portfolio.
These acquisitions and developments align with Eureka’s focus on expanding its footprint in both seniors’ rental villages and the emerging all-age affordable rental market. Occupancy rates remained stable at 98%, supporting sustainable rental income growth.
Capital Management and Refinancing
In April 2025, Eureka refinanced and upsized its debt facility from $101 million to $185 million, structured across 3-, 5-, and 7-year maturities. This multilateral facility includes a $5 million working capital component and an uncommitted $200 million accordion facility, providing flexibility for future growth initiatives.
The Group maintained compliance with all loan covenants and hedged approximately 53% of its debt with interest rate swaps, mitigating exposure to variable interest rates amid a rising rate environment.
Leadership and Governance
Leadership changes marked the year with Simon Owen appointed as Chief Executive Officer and Managing Director, bringing over 25 years of experience in property and retirement living sectors. The executive team was further strengthened with the appointment of Chetan Shiv as Chief Financial Officer, succeeding Acting CFO Michael Copeland.
The Board continues to emphasize strong governance and sustainability, with initiatives focused on environmental responsibility, social inclusion, and operational efficiency across its communities.
Outlook
With a solid financial foundation, an expanded portfolio, and a refreshed leadership team, Eureka Group Holdings is well-positioned to capitalize on growth opportunities in the affordable rental accommodation sector. The company’s commitment to sustainability and community engagement further supports its long-term strategy.
Bottom Line?
Eureka’s robust profit growth and strategic acquisitions set the stage for continued expansion in affordable rental housing, but investors will watch closely how new assets integrate and perform.
Questions in the middle?
- How will recent acquisitions impact earnings and cash flow in FY26 and beyond?
- What are the company’s plans to manage interest rate risk amid a rising rate environment?
- How will the new leadership team influence Eureka’s growth and operational strategy?
