Listed rental village operator Eureka moves back into the black

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Eureka‘s first-half result across its 35 rental villages, released last week, showed a net profit of $2.83 million after a loss of $100,000 in the previous period.

Revenue increased by 5 percent to $11.8 million, due to stronger occupancy at 92 percent – plus additional service fees from a five-village joint venture in Tasmania. EBITDA for the six months was $3.68 million.

However, the company said despite these strong trading results it will still miss its forecast pre-tax profit guidance of between $7.8 million and $8.3 million for the full year due to one-off costs.

It can however now receive the proceeds from the sale of 61 units in its Terranora village in northern NSW, which has been granted strata title rights after two years negotiation with the Tweed Heads Council.

Over the past three months, Eureka has appointed a new COO and CFO.

Eureka said it will continue to focus on further expanding its core business of affordable rental accommodation for retirees through the acquisition of new villages and units.

Eureka and Ingenia are the only two rental village operators of this scale across the country – both are about the same size.