For the year ended 30 June 2023 Statement of Profit or Loss and Other Comprehensive Income
A 14 unit development is also underway in Felixstow and is expected to be completed in mid-2024. In Victoria, Housing Choices Australia completed 62 new housing outcomes and received a further 36 properties under management during the year. The acquired properties were funded through various sources including Homes Victoria’s Social Housing Growth Fund (New Rental Development Program and the Build and Operate Program), along with debt from Treasury Corporation Victoria (TCV) and equity contribution for Housing Choices Australia. The Group continued work on delivering 424 new housing outcomes as part of the Rapid Grants Round of Homes Victoria’s Big Housing Build program. In Western Australia, ten new housing outcomes were delivered during the year with four acquired and six management properties received, nine of these outcomes are part of the DM100 project. The Group received approval to build 49 new housing outcomes as part of the Department of Communities Social Housing Economic Recovery Package New Build Grants which are undergoing development due diligence. A further five new housing outcomes are also undergoing due diligence as part of Stage Two of the Southwest Ageing-in-Place Project, partly funded under a Royalties for Regions grant program. For Specialist Disability Accommodation there is around $4 million of cash available to fund the redevelopment of the existing portfolio of properties and provide funding for further developments. Debt In Tasmania debt is held with the National Housing Finance and Investment Corporation (NHFIC). The debt facilities total $56 million, of which $34 million was drawn at 30 June 2023. The facilities have up to 12-year terms at fixed interest rates. The NHFIC debt is being used for a number of developments in Tasmania as part of the funding for developments under the Tasmania State Government’s Community Housing Growth program. In South Australia debt is held with NHFIC. The debt facility totals $16.5 million which was fully drawn at 30 June 2023. The facility has a 12-year term at a fixed interest rate. The debt facility refinanced previous facilities with NAB and was used to partly fund a number of developments in South Australia.
In Victoria debt facilities are held with NHFIC ($55 million) and TCV ($42 million). The NHFIC facility has a 10-year term with fixed interest rates and the TCV loan is a 30-year facility with fixed interest for 15 years at rates. The TCV debt was used to fund the delivery of 99 new units under the Social Housing Growth Fund program of the Victorian State government. Additional debt from TCV of $56 million has been approved and will be used as part of the funding for the delivery of 424 new housing outcomes as part of Homes Victoria’s Big Housing Build program. In Western Australia the Commonwealth Bank facility is $40 million which is drawn to $27 million. This debt expires in November 2024 and considerations for the refinancing of this debt and the capacity required for new developments, including obligations under the Community Housing Agreement (CHA) will be considered in the new financial year. Additional debt will be used to partly fund new outcomes as part of the Department of Communities Social Housing Economic Recovery Package New Build grant program. Cash Housing Choices Australia diligently manages its cashflows to ensure that it holds adequate cash on hand and on deposit to meet the obligations of management arrangements with state governments, operational and financing obligations, investment in future projects, and additional demands that may arise from time to time. Across the group there are significant balances held in cash totalling $46 million (2022: $51 million). These cash balances will continue to fall in the coming years as funding received to date will be invested in new projects and long-term asset management programs. Some of these projects are identified above. Funds are held prior to the commencement of projects and then applied as the developments progress. These projects will deliver new social, a ordable and specialist disability housing outcomes in Victoria, Tasmania, South Australia and Western Australia.
2023 2022 $000s $000s
Revenue Other income
95,619 3,649
99,602 10,281
Property expenses Consultant expenses Employee benefits expense Operating expenses
(40,752) (2,087) (30,173) (6,658)
(54,458) (3,485) (33,721) (7,316)
Earnings before tax, interest, depreciation and amortisation
19,598
10,903
Finance costs
(3,062)
(4,972)
Net operating surplus
16,536
5,931
Depreciation and amortisation expense Capital grants received
(14,546) 36,498
(15,483) 62,170
Net surplus for the year
38,488
52,618
Other comprehensive income
66,468
11,802
Total comprehensive income for the year
104,956
64,420
57
Annual Report 2022-23
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