• Revenue up 11% to $22.6 million
• Underlying EBITDA up 16% to $8.2 million
• Statutory net profit after tax stable at $6.4 million
• Significant $100m+ acquisition pipeline secured
• Targeting 5-7% annual rent increases

Eureka Group Holdings Limited (ASX: EGH) has announced its results for the half year ended 31 December 2024 (1H25), delivering a solid operating performance. Revenue increased 11% to $22.6 million, driven by strong resident demand, rental growth, and contributions from prior period acquisitions and developments. Underlying EBITDA grew 16% to $8.2 million, including 7% like-for-like growth. Statutory net profit after tax remained stable at $6.4 million, as the increase in underlying EBITDA was offset by lower property revaluations. The group continued to improve maintainable earnings, which underpinned a $4.6 million valuation uplift to the portfolio. Eureka has a solid financial position, with net debt of $35.8 million and gearing of 13.5%. The company has commenced a capital recycling program, with the disposal of a rental village in Mount Gambier and plans to divest a further $25-$30 million in non-core or regionally isolated assets. Eureka's pipeline of acquisition opportunities now exceeds $100 million, and the company is targeting annual rent increases of 5-7% to offset cost pressures. The company's guidance for FY25 underlying EBITDA growth of around 11% and underlying EPS growth of around 2.6% on FY24 remains unchanged.

Revised FY25 Underlying EBITDA growth of around 11% on FY24. Revised FY25 Underlying EPS growth of around 2.6% on FY24.

Eureka is well positioned for a period of strong and sustainable growth, underpinned by continuing demand for rental accommodation, constrained new supply, and a focus on delivering CPI+ rental growth. The company expects to make further investments in the all-age affordable rental market in the coming months.