Japara to boost its portfolio by 1,350 new beds by end of 2021 – $200-$250 million in RAD receipts

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The beds, which include 1,200 new operational places across 10 greenfield projects, will cost $200,000 each, but should deliver 60% RAD penetration at 95% occupancy according to its latest investor presentation.

This program is expected to be self-funded and also bring in around $25 million in additional EBITDA.

The listed provider is also following through on plans to refurbish 14 existing facilities over the next two years – forecast to add another $4.25 million to its EBITDA over FY18 to FY20.

Continuum of care is high on their agenda too with another 200 Independent Living Units and Apartments planned for three locations co-located with their aged care facilities.

Japara already has 180 ILU’s and ILA’s across five facilities that have been up-and-running for five years which are providing an “attractive growth opportunity”.

Key to this is their DMF structure which offers a “competitive advantage” at 2.5% p.a. and is capped at 25% for their new projects.

Interestingly, Japara says it’s also building its Signature range of additional services which now includes:

  • Dining upgrades;
  • Hospitality experiences;
  • Technology and entertainment;
  • Massage;
  • Brain training;
  • Physical exercise programmes; and
  • Communication programmes with families.

Another bonus for the operator who recently acquired Riviera Health’s portfolio at minimal cost after new and redevelopment opportunities it delivered.