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Financial performance

Financial performance data for Victoria’s community housing sector at 30 June 2024.

Housing assets

The value of housing assets owned by the registered sector increased by 15% ($800 million) in 2023-24, driven by higher housing asset valuations and growth in the number of owned properties.

Note: Housing managed on behalf of the Department of Families, Fairness and Housing or other parties is excluded from these figures.

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Operating revenue

Operating revenue increased by 9% ($40 million) in 2023-24, predominantly driven by growth in rental revenue (less bad debts).

Note: Where registered agencies provide other services in addition to housing, operating grants for non-community housing services are included in these figures.

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Operating expenses

Operating expenses grew by 8% ($36 million) in 2023-24. The proportion of operating revenue spent remained steady over the financial year, indicating consistent cost management relative to revenue.

Note: Operating expenses exclude depreciation and finance costs, which are included in summary financial statements below.

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Operating EBITDA

Operating earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 17% ($5 million) in 2023-24. The Operating EBITDA margin remained steady, reflecting proportionate growth in operating revenue and expenses during the financial year.

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Capital grants

Capital grants are used to fund property development and upgrades. In 2023-24, total capital grant funding to the registered sector increased by 10%, representing an additional $25 million.

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Registered sector debt

Registered sector debt increased by 82% ($965 million) in 2023-24, reflecting the substantial uplift in funding for development projects. Most of this new debt ($800 million) is linked to Building Communities (Vic) Limited and Building Even Better Communities Limited through their involvement in the Victorian Public Housing Renewal Program.

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Debt composition

Low-interest loans from the Federal and State Governments account for most of the registered sector’s debt. In 2023-24, Federal Government lending to the sector increased by 84% ($578 million), while State Government loans grew by 55% ($145 million).

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Debt ratios

During 2023-24, the sector’s debt-to-equity (gearing) ratio and debt-to-housing-assets ratios increased by 71% and 59%, respectively. These changes reflect the significant rise in sector debt to fund development activity.

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Interest cover

The interest cover ratio measures the extent to which operating earnings can cover interest expenses. This ratio remained steady in 2023-24, with a positive interest cover ratio of 1.3 as at 30 June 2024 indicating the sector has sufficient earnings to meet its interest repayment obligations.

Note: Interest cover is calculated as (Operating EBITDA plus interest income) divided by finance expenses.

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Liquidity

The working capital ratio shows the sector’s ability to pay its current liabilities using its current assets. A working capital ratio of 4.1 as at 30 June 2024 indicates the sector has sufficient current assets to meet its short-term financial obligations.

Note: Capital grants received in advance are excluded from these figures.

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Cash and short-term investments

In 2023-24, sector cash and short-term investments increased by 92% ($433 million), primarily driven by the drawdown of loan facilities and the timing of capital grant receipts ahead of project delivery.

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Capital structure

Equity continued to represent most of the sector’s capital structure in 2023-24, driven by positive earnings accumulated over time and an increase in housing asset values. Total liabilities – predominantly debt, payables and provisions – increased by 65% ($1.17 billion) during the financial year to facilitate sector growth.

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Registered sector summary financial statements

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FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Rent revenue 146.5 147.6 157.4 173.1 208.6
Operating grants 141.6 179.1 209.8 217.4 211.6
NRAS subsidy 12.1 10.5 9.8 7.5 4.5
Other revenue 34.6 35.8 45.2 51 64.2
Total operating revenue 334.8 373 422.2 449 488.9
Admin expenses 173 207 227.5 256.1 205
Property expenses 73.3 82.1 99.7 115.2 131.6
Other expense 41.3 58.2 54.6 47.3 117.1
Total operating expense 287.6 347.3 381.8 418.6 453.7
Operating EBITDA 47.2 25.7 40.4 30.4 35.2
Capital grants 38.1 67.3 193.5 255.7 280.8
Interest income 2.6 2.7 6.9 13.2 46.1
Depreciation -34.8 -38.2 -43.3 -39.8 -53.4
Finance Costs -15.6 -10.8 -30.2 -34.8 -60.3
Other one time items 76.5 168 307.8 -20.9 14
Net surplus 114 214.7 475.1 203.8 262.4
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Cash and short term investments 214.5 760.6 549.1 471.2 903.8
Other current assets 47.3 65.6 92.2 125.2 216.5
Current Assets 261.8 826.2 641.3 596.4 1,120.3
Housing assets 3,713.6 4,041.5 4,750.1 5,370.5 6,163.7
Other Non Current Assets 101.5 171.7 302.1 186.5 340.9
Total Non current assets 3,815.1 4,213.2 5,052.2 5,557.0 6,504.6
Total Assets 4,076.9 5,039.4 5,693.5 6,153.4 7,624.9
Loan liabilities 38.9 24.3 19.2 36.2 57.7
Other current liabilities 112.9 179.5 268.4 337.9 393.5
Total Current Liabilities 151.8 203.8 287.6 374.1 451.2
Non-current loan liabilities 357.0 996.8 1,042.1 1,135.0 2,078.6
Other non-current liabilities 73.2 96.8 116.6 181.2 330.6
Total non current liabilities 430.2 1,093.6 1,158.7 1,316.2 2,409.2
Total Liabilities 582.0 1,297.4 1,446.3 1,690.3 2,860.4
Net Assets 3,494.9 3,742.0 4,247.2 4,463.1 4,764.5
Reserves 995.8 1,267.8 1,346.5 1,370.0 1,008.4
Earnings 2,499.1 2,474.2 2,900.7 3,093.1 3,756.1
Total equity 3,494.9 3,742.0 4,247.2 4,463.1 4,764.5

Community housing sector performance

Live information about Victoria’s community housing sector.

Key Performance Measures

Aggregated KPM results for Victoria’s community housing sector.

Registered agency performance

Select a registered agency to learn about its performance.

Updated 17 April 2025

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