The listed provider increased its EBITDA on the back of a 94.2% occupancy rate – a solid result in today’s competitive market and declared a final dividend of 8.0 cents per share – a payout ratio of 100% of Net Profit After Tax.
It was also a strong year for Estia’s development program with five new facilities in “strategically important” locations including its 114-bed Twin Waters home in QLD and its 72-bed Kogarah home in NSW completed on budget and on schedule with both homes outperforming their occupancy forecasts.
In addition, they have refurbished 19 homes with another 13 undergoing refurbishment – a considerable investment funded by debt facilities of $330 million.
The investment is paying off however – unless there are changes in the market or regulations, Estia CEO Norah Barlow says they plan to deliver a mid-single digit percentage increase in EBITDA in FY19.
Perhaps counter to the gloomy profit sustainability predictions of most other operators, Ms Barlow said: “We are confident about the future of the company and the fundamentals of the industry in which we operate.”
Ms Barlow’s confidence is reflected in the fact that she will depart her role in November 18 months ahead of schedule with Chief Operating Officer/Deputy CEO Ian Thorley stepping into the CEO role and Sean Bilton, former Acting Managing Director of Opal Aged Care, taking up the Deputy CEO/COO role.