Eureka Group Holdings (ASX:EGH) expects fiscal year 2026 underlying earnings per share to be at the upper end of its AU$0.0337 to AU$0.0344 guidance range, according to a Monday filing with the Australian bourse.
The company also expects underlying earnings before interest, taxes, depreciation, and amortization to be at or above the top end of its AU$20.2 million to AU$21.1 million guidance range, per the filing.
Eureka Group said the forecasts account for an increase in funding costs as the company continues to operate in a higher-for-longer interest rate environment.
Still, it expects like-for-like rent growth to surpass 6% for fiscal year 2026, reflecting both sustained demand for affordable rental accommodation as well as tight supply across the group's markets. Trading in the fiscal second half has been strong thus far, with seniors' occupancy remaining high at about 97%, the company said.
Meanwhile, the group also started a sell-down process for rental units at its Bundamba and Eagleby rental communities in Brisbane, which is anticipated to unlock between AU$22 million and AU$24 million of capital over the next two to three years.
Eureka's shares gained 3% on market close.