The new CEO of just eight weeks was ebullient in his optimism for the rental village sector in his AGM presentation, comparing it to early Ingenia, a company he took from $30M to $1.7B in value in 14 years.
"What really excites me about the role at Eureka are the tremendous growth opportunities that the over 50’s rental market offers”.
1. We have incredible levels of demand for rental accommodation driven by an ageing population and near record levels of migration. Some 35 of our 52 communities presently sit at 100% occupancy.
2. New supply is significantly constrained due to increasing construction costs and access to finance.
3. Our horizontal Build to Rent model lends itself perfectly to modular offsite construction which I used extensively during my time at Ingenia Communities;
4. There is really no capital formation in the horizontal Build to Rent sector. I see many similarities with our sector to where land lease communities were a decade ago. 
5. Our model lends itself perfectly to key sea change and tree change markets where many over 50’s are moving.
6. We have government supported revenue driven by the fact that over 95% of our residents receive both the Commonwealth pension and rent assistance.
7. And there is also $14 billion of State and Commonwealth funding support available for the development of new over 50 rental communities.
Simon predicts 16% EBITDA growth in FY25.
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