The pandemic in the second half of the financial year has brought great challenges and opportunities. The Housing Choices Australia Group has managed to achieve a great deal over this time, generating operating earnings of $11 million on income of $56 million, and increasing the asset base of the group by $44 million, up to $766 million from $722 million in 2019. Through the refinancing of debt with the National Housing Finance and Investment Corporation (NHFIC), the Company is estimated to save $400,000 annually which can be repurposed to provide more housing for Australians in need. The new debt with NHFIC over and above the refinancing has contributed to our delivery of 76 new social housing outcomes. Over in South Australia, the completion of the $27million Spence on Light development has not only grown our portfolio and assets, but further emphasised that innovative and sustainable housing solutions are possible. In Tasmania there has been investment in the year of over $10million in new developments. This will continue into the new year, supported by capital grants from the State Government and the Commonwealth. Housing Choices Australia remains a leading national provider for social and a ordable housing. Although the year has been unlike any seen before, the Group remains in a strong position to be able to maintain sustainable growth in the years to come.
While the Financial Report for Housing Choices Australia is not audited, the individual Financial Statements from which it has been extracted are audited by PwC. The Financial Report for Housing Choices Australia provides an overview of the activities of all entities in the group. Further details relating to the activities of each entity can be obtained by contacting Housing Choices Australia. In October 2019 Housing Choices Australia Limited replaced $37million of existing debt arrangements in Victoria held with Westpac, NAB and Bank Australia with new debt totalling $55m with NHFIC. The new 10-year facility at an interest rate of around 2% provides certainty of finance costs at low rates of interest for the long term. The additional debt over and above the refinancing of existing facilities contributed to Housing Choices Australia delivering 76 new social housing outcomes. Ongoing savings in interest costs are estimated at around $400k a year which will allow further investment in Social Housing outcomes in the future. Completion of the Spence on Light project We are proud to have completed the $27million, 75-unit development at Spence on Light funded by Housing Choices Australia cash reserves, NAB development debt facility and the support of the South Australian Housing Authority (SAHA) and ACH Group. Of the 75 units, 19 units were retained by the Group, the other 56 units were sold to ACH Group (16 units) and the South Australian Housing Authority (40 units). The management of the units sold to SAHA was transferred back to the Company under the ROSAS agreement.
The 30 June 2020 Financial Report for the Housing Choices Australia Group is compiled from the Financial Statements for each of the following entities:
• Housing Choices Australia Limited • Housing Choices Tasmania Limited • Housing Choices South Australia Limited
• Housing Choices NSW Limited • Urban Choices Property Limited • Singleton Equity Housing Limited • Disability Housing Limited • Disability Housing Trust • Inner City Social Housing Trust • Ecumenical Housing Trust
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Housing Choices Australia | Annual Report 2019-20
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