Defence Housing Australia

Overview Key strengths Key risks Government-owned, with a strategic role to provide accommodation to defense personnel in Australia. Direct exposure to Australia's cyclical residential property market. Long-term service agreement and highly rated revenue counterparty (Australia). Development and construction risks associated with higher provisioning needs than what is currently anticipated. Strong liquidity, with credit lines provided by the Australian government. The strong credit quality of, and stable revenue streams from, the government mitigate DHA's tenant concentration to government entities. We believe DHA will continue to play a pivotal role in providing housing and administering home ownership initiatives for the Australian Defence Force (ADF). In response to a stagnating ADF workforce in the past decade, the government is implementing recruitment and retention

...Defence Housing Australia's (DHA) longstanding service agreement with the Australian government and its strategic importance to the Department of Defence (Defence) support its credit quality. The strong credit quality of, and stable revenue streams from, the government mitigate DHA's tenant concentration to government entities. We believe DHA will continue to play a pivotal role in providing housing and administering home ownership initiatives for the Australian Defence Force (ADF). In response to a stagnating ADF workforce in the past decade, the government is implementing recruitment and retention initiatives to increase the number of permanent ADF members. It has a target of 69,000 by the early 2030s, from about 57,200 in fiscal 2024 (year-end June 30). We...

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