What’s holding back Eureka Group’s expansion?
Key points
- Occupancy strong: Seniors villages 97% full, all-age rentals at 95%
- Rents rising: Like-for-like growth exceeds 6%
- Council delays bite: Planning approvals slowing new housing supply
- Capital recycling: Non-core assets sold to fund growth opportunities
The ASX-listed owner and operator of seniors and all-age rentals has issued an FY26 trading update, highlighting one key challenge to future growth.
Eureka is experiencing strong demand and occupancy rates across its communities as it reshapes its portfolio.
“Eureka has traded strongly through the second half, Managing Director and Chief Executive Officer Simon Owen said in the Trading Update. “Our seniors’ villages remain close to full at approximately 97%, and all-age occupancy has strengthened to around 95%. Like-for-like rents are growing by more than 6% as demand for affordable rental housing continues to outstrip supply.”
“We are also allocating capital with discipline, realising value from selected homes and units and exiting non-core assets, and redeploying that capital into higher-returning development and acquisitions.”
However, Eureka has several developments that have been held up by Council planning processes.
“Several developments continue to be delayed by Council permitting processes, which remain a key contributor to the constrained supply of affordable rental housing across the country,” Simon added. “The Group presently has new homes being delivered across its Hillside, Benalla, Nagambie, Emerald, Paynesville and Burrum River communities and multiple other projects awaiting Council approval.”
Eureka Group is continuing to sell non-core assets with the latest being the sale of the 42-unit Broken Hill seniors’ rental village in far western NSW for $4.4 million with settlement expected to occur later this month.
