Image – EGH, APZ.
  • EGH underlying profit before tax is up 31%
  • Revenue is also up more than 11%
  • APZ has now settled Wodonga Gardens

Recently, The Property Tribune covered the financial results of three players in the lifestyle and retirement village space: Lifestyle Communities (ASX: LIC), Ingenia (ASX: INA), and Aspen (ASX: APZ).

Profits for the three companies were up across the board, so too was revenue. Lifestyle Communities and Ingenia both had large improvements in profit, LIC up 113% and INA up 131%.

Eureka Group (ASX: EGH)

The specialist owner, operator, and manager of rental retirement villages saw revenues rise 11.2% from $24.809 million in FY20 to $27.582 million in FY21.

The company made several acquisitions in Queensland, including 70 units in Earlville, and 53 units in Hervey Bay. Eureka also expanded Wynnum by 22 units. The Earlville and Hervey Bay acquisitions were made for $13 million.

Eureka also acquired a village in Brassall for $6.5 million; the village includes 59 units and land for the development of a further 47 lots.

FY21 Change Direction
Revenue from ordinary activities $27.582 million 11.20%
Underlying EBITDA $10.569 million 21.50%
Profit before tax $8.742 million 3.70%
Underlying profit before tax $7.36 million 31.00%
Profit from ordinary activities after tax and net profit for the period attributable to members $6.283 million 22.40%
37.5 cps 35.5 cps
Balance sheet gearing 37.80%

Eureka said it is looking at upscaling and growing the core business through disciplined acquisitions and greenfield “build-to-rent” developments, as well as maintaining occupancy, rental growth and cost control to increase profitability.

Aspen (ASX: APZ) update

The company announced the acquisition of Wodonga Gardens Retirement Estate back in July, with settlement announced this week.

The Wodonga Gardens Retirement Estate was purchased for $6.01 million, excluding transaction costs.

Located in Victoria, the retirement village is close to the border with New South Wales and the city of Albury. It is some 3.5 hours by road to either Melbourne CBD or Canberra and is also serviced by Albury Airport.

The development will be the largest retirement village in the Albury-Wodonga region, spanning 8.8 hectares and approved for 172 houses, 51 of which have been built and leased thus far.

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