This article is from the Australian Property Journal archive
AGED care provider Regis is eyeing off more strategic and greenfield developments as it booked growth in occupancy, revenue and earnings in the first half.
Despite reporting a loss of $12.1 million, impacted by $28.5 million of non-cash bed licence amortisation, revenue jumped by 26% on the prior corresponding period (pcp) to $480.1 million and underlying EBITDA lifted 16% to $52.1 million. Net operating cashflow surged 145% to $151.9 million.
Regis said revenue benefited from improved with increases to AN-ACC in July and December, occupancy uplift from 91.1% to 93.6%, additional resident funding and the acquisition of aged care businesses CPSM in south east Queensland, bringing an additional five homes with 644 beds
“Regis’ strong balance sheet and substantial debt facility, together with the disciplined management of the business, supports the active pursuit of further material strategic acquisitions and greenfield developments to drive shareholder value,” it said.
“The company is seeking potential acquisition targets to expand its residential aged care footprint.”
Capital expenditure for the first half was $30.5 million, up from $18.8 million, which included its Camberwell development in Melbourne’s east, a 112-bed greenfield residential aged care home that is expected to open in the second half of FY25.
Regis said the Albanese government’s aged care reform agenda “continues to challenge the sector with additional reporting, regulation and compliance requirements being placed on providers”.
“Importantly, funding has improved with increases to AN-ACC on 1st July 2023 and
1st December 2023. The government’s aged care taskforce reviewed sector funding arrangements during the second half of 2023 and we anticipate the release of their recommendations will address critically needed long-term funding.”
Regis is paying an interim dividend of 6.28c per share totalling $18.9 million, 50% franked.
