Housing assets
The value of housing assets owned by the registered sector increased by 14% ($661 million) in 2022-23, driven by an increase in both housing asset valuations and the number of owned properties.
Note: Housing managed on behalf of the Department of Families, Fairness and Housing or other parties are excluded from these figures.
Operating revenue
Operating revenue increased by 22% ($108 million) in 2022-23. Operating grants exceeded rental revenue (less bad debts) as the largest source of operating revenue for the third successive year. Other revenue increased by 84% ($87 million), predominantly due to interest income accrued on contract assets and investments, and construction revenue.
Note: Where registered agencies provide other services in addition to housing, operating grants for non-community housing services are included in these figures.
Operating expenses
Operating expenses increased by 24% ($105 million) in 2022-23, mostly attributable to an increase in Other expenses, including construction costs for new social housing.
Note: Operating expenses excludes depreciation and finance costs which are included in summary financial statements below.
Operating EBITDA
Operating earnings before interest, tax, depreciation, and amortisation (EBITDA) remained steady in 2022-23, reflecting proportionate growth in operating revenue and operating expenses during the financial year.
Grant funding
The sector’s revenue is predominantly comprised of rents, capital grants and operating grants. Capital grants fund upgrades and development of properties and operating grants provide funding for the delivery of specific programs.
Registered sector debt
Registered sector debt increased by 13% ($151 million) in 2022-23, reflecting increased funding of development projects. Low-interest loans from Federal and State Government comprise most of this debt.
Note: The level of sector debt among housing providers has been elevated since 2020-21, primarily due to the registration of housing provider Building Communities Victoria Ltd, which had borrowings of approximately $500 million for participation in the Victorian Public Housing Renewal Program.
Interest cover
The interest cover ratio indicates the extent to which operating earnings can cover interest expenses. This ratio has steadily declined since 2018-19 due to higher debt across the sector. However, a positive interest cover ratio of 1.2 at 30 June 2023 indicates the sector has sufficient earnings to meet its interest repayment obligations.
Note: These figures reflect the Housing Registrar's revised formula for interest cover (Operating EBITDA / Finance Expenses).
Liquidity
The working capital ratio shows the sector’s ability to pay its current liabilities with its current assets. A working capital ratio of 2.3 at 30 June 2023 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.
Cash and short-term investments
In 2022-23, sector cash and short-term investments continued to trend towards historical averages following a significant increase in 2020-21, driven primarily by the drawdown of loan facilities.
Capital structure
Equity continued to represent most of the sector’s capital structure in 2022-23, driven by positive earnings accumulated over time and an increase in housing asset values. Total liabilities (predominantly debt, payables and provisions) increased by 19% ($285 million) during the financial year to facilitate sector growth.
Registered sector summary financial statements
Community housing sector performance
Live information about Victoria's community housing sector.
Key Performance Measures - archive
Aggregated KPM results for Victoria’s community housing sector at 30 June 2023.
Registered agency performance
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