Taking a bit of a hit with Corona, like most other players in the sector. With a focus on independent living, EGH is probably closer to LIC and INA than some of the age care outfits (like Estia EHE and Japara JHC) but that hasn’t helped any.
Target market was the growing retirement population and, as stated, the objective was “to grow and scale the business, through acquisition of traditional villages and development of existing assets; Portfolio and greenfield developments to follow at a later stage.” I suspect decisions by those considering such lifestyle options are reconsidering, based on a reduction of individuals’ “wealth effect” and general uncertainty.
One funds manager (NCC) has a position and is generally positive about Eureka
• EGH have seen no changes in occupancy levels to date.
• Systems and processes have been put in place to minimise risk across all EGH villages.
• Total asset value is $0.34 per share with net debt of circa 40% as at 31 December 2019.
• >90% of cash flows are through contracted rental accommodation agreements
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