Quite interesting model, which is rather low risk as it seems to be largely financed by the government support (via rental assistance and support to the construction), while the financial gearing is also quite low. The limit of this model (unlike land lease model) is that it is rental only and generates a rather limited ROE for FY24 and H1 25 (between 7 % and 8 %), even after revaluation. Unles the company begins to be more active with capital recycling.
Too bad that I can not find any figure related to the average rent* in their presentations. It seems to me a key element in their model. Also quite curious to know the average duration of rental contracts (which are signed).
* it would be really interesting to compare the average rent with the full assistance of the government, up to 1,356 $ per fortnight for singles and 1,924 $ for couples.
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