Eureka, with 30 owned rental villages and eight under management, delivered a net profit before tax of $9.1 million for FY20 which compares to $6.8 million in FY19 – a 34% increase.
This result included the sale of the 27-unit Terranora village for $6.39 million, delivering a $1 million gain on the sale (average price $237K).
FY20 is also the first time the group has paid tax in more than 15 years, as they had been using up tax losses from the early days when it was made up of 55 failed rental villages operated by SunnyCove and Village Life. Eureka ended up with 28 of them.
Under new leadership with Cameron Taylor, this year they increased occupancy to 95%, up from 91%.
They also purchased perhaps the largest rental village in the country for $13 million, Liberty Villas in Bundaberg, as we reported here.
By comparison, the other listed rental village operator, Ingenia, delivered an EBIT of $10.2 million from 26 villages in FY20.