This article is from the Australian Property Journal archive
WITH Estia Health’s (ASX: EHE) looming takeover by Bain Capital approaching, the aged care operator undertook a successful portfolio expansion, with results improved despite remaining in the negative.
EHE reported a net loss after tax of $33.9 million, improved from the previous year’s $52.4 million loss in FY22.
With FY23’s result impacted by a full-year bed licence amortisation charge of $80.5 million before tax, up from $60.3 million in FY22.
EHE’s EBITDA for mature homes was at $116 million, up from $37.5 million in the previous corresponding period (pcp).
Estia Health has determined that a final fully franked dividend of 12 cents per share.
“The FY23 financial outcomes for shareholders signify a marked turnaround in sector and company operational performance notwithstanding the ongoing impacts of COVID-19,” said Sean Bilton, CEO at Estia Health.
“The significant increase in mature homes EBITDA reflects our successful portfolio expansion through strategic acquisitions and developments, the maintenance of a steady upward trajectory in occupancy rates and higher funding better aligned with input costs.”
Estia Health’s occupancy averaged at 92.3% up from 91.6% in FY22, with group spot occupancy at 93.5% at 18 August 2023 and occupancy outside of Victoria at 95.3%.
Occupancy in Victoria has also improved over FY23, up 0.4% to 89.4% at 18 August 2023.
EHE added 533 net new resident places and five new homes to its portfolio through acquisitions over the period. With a 9% increase in resident place numbers through acquisitions and developments.
These acquisitions resulted in a total of 73 homes across the group’s portfolio, with 6,720 places.
With $138.4 million in capital expenditure through acquisitions, new home developments, extensions and improvements.
Net debt at 30 June 2023 was at $43.8 million, with 50% of total debt facilities to mature in March 2025 and 50% in March 2026.
Net RAD inflows were at $85.7 million up from $22.8 million in FY22.
Global private equity firm Bain Capital is set to pay $838 million for Estia Health, with the the Sydney-based operator signing a deal to finalise the takeover at $3.20 per share earlier this month, with the deal a 25.5% premium to Estia’s stock closing price on June 6, before the offer was first disclosed.
“I would like to thank our residents and their families for trusting us to provide care and support at an important time in their lives. We continue to strive to provide the highest quality aged care services as we navigate a difficult operating environment,” concluded Bilton.
