Macquarie says aged care is still attractive – as Soul Pattinson flags it has liquidity available for new investments

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Aged care remains on the radar for investors as the 26 February deadline for the Royal Commission report nears.

Macquarie Equities Healthcare Analyst, David Bailey has told The Australian that the longer-term fundamentals for the residential aged care sector remain attractive despite the challenging operating environment created by COVID this year.

“Increased government funding represents potential upside, and recent corporate activity is an additional consideration,” he said.

Mr Bailey said Estia is best positioned out of the listed providers and has lifted his rating for the provider from Neutral to Outperform while staying Neutral on Japara and Regis.

Meanwhile, conglomerate Washington H Soul Pattinson – which recently made two takeover bids for Regis – held its AGM last week.

Chairman Robert Millner said that the conglomerate still sees buying opportunities in Australian equities where some businesses can be bought at reasonable prices, and had – for the first time in its 117-year history – borrowed money to invest.

Mr Millner told shareholders the company had continued to progress on its Cronulla development with Provectus Care led by Dr Shane Moran (pictured above) – and was working with Provectus on new luxury independent living apartments.

Its outlook states that the company has the liquidity available for new investments – and is looking across a range of industries.

Watch this space then.