This article is from the Australian Property Journal archive
Encouraged further by the federal government’s response to the Aged Care Taskforce recommendations, Regis Healthcare said it will continue to use its strong financial position acquire more facilities and greenfield developments.
Regis posted a 17.5% uplift on the prior corresponding period in revenue from services to $564.2 million in the first half. Underlying EBITDA was 30.7% higher, to $68.1 million, and it swung to a profit of $24.4 million.
The Aged Care Taskforce knocked back lifting taxes to fund the aged care sector, suggesting instead that Australians should pay more based on personal wealth, which was supported by the Albanese government.
“Regis will continue to use its strong balance sheet, substantial debt facility and disciplined management of the business, to support the active pursuit of further material strategic acquisitions and greenfield developments to drive increased shareholder value,” Regis managing director and CEO Linda Mellors said.
“The government’s response to the taskforce recommendations will provide a financial boost to providers and has encouraged Regis to invest in further greenfield and brownfield developments,” Mellors said.
Its brand-new 112-bed home in Camberwell, Melbourne, opened to residents in November 2024, and it is expanding and progressing its pipeline of greenfield developments in Melbourne, Sydney and Brisbane.
Construction has commenced at Toowong in Brisbane, with construction soon to commence at two further greenfield developments in Sydney’s Belrose and Carlingford. Regis secured two further sites during the period in the Melbourne suburbs of Essendon and Coburg, with contracts signed and settlement to occur in the first half of FY26.
In December it completed the acquisition of two homes on Victoria’s Mornington Peninsula from Ti Tree Operations, and signed an agreement in January to acquire BodeWell Community Care to double the size of its home care business.
“Regis finished the six-month period with significant net cash to support our growth agenda,” Mellors said. Net cash was at $179.9 million, up from $16.9 million a year earlier..
Regis Bulimba in Queensland is planned to be closed later in the 2025 calendar year.
Care funding increased significantly from October 2024, with higher AN-ACC to fund an increase in the care minutes mandate and aged care worker pay rises. Regis welcomed the passing of the new Aged Care Act in November with bi-partisan support, ahead of its implementation from July.
