Defence Housing Authority

Portfolio Analysis

Between 2003 and 2006 HillPDA analysed the performance of the Defence Housing Authority’s (DHA) extensive portfolio of 23,000 on and off-base dwellings across Australia.

The purpose of HillPDA’s review was two-fold: it served to facilitate with the repayment of Commonwealth debt and serve as a public listing exercise. The HillPDA Team developed a bespoke Corporate Plan Model that projected DHA’s profit and loss, cash flow, funding requirements and balance sheet projected over 15 years.

The Corporate Plan Model allowed DHA to consider life cycle and maintenance costs, cash flow, and capital needs when making business decisions as well as reporting to the Finance Division.

HillPDA also delivered strategic advice on how to best meet Commonwealth objectives while continuing to maximise returns, with joint venture strategies, disposal of inferior stock and sale and leaseback arrangements among the options considered. It was recommended that DHA invest in upgrading its residential estates to improve amenity and overall perception prior to the preferred strategy of sale and leaseback of its assets.

HillPDA also worked with DHA to provide advice on a variety of other matters including rent-setting principles, valuation strategies to enable periodic review of DHA’s housing portfolio, risk assessment, market profiles of cities and states, and an assessment of portfolio diversification as part of DHA’s overall residential portfolio strategy.

Summary of Services: Strategic Asset Management, Portfolio Evaluation, Property Performance Benchmarking, Risk Assessment, Funding & Financial Analysis, Due Diligence, Property Market Analysis, Locality Profiling, Rent Determination

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