Occupancy levels at its facilities dropped from 94.2% in June 2017 to 91.7% for three months to September 2017, with the “duration and number of residents affected” to blame according to its latest market update.

Its EBITDA for the first half of FY18 is also predicted to be 15-17% below the same period last year, while the full year FY18 EBITDA is expected to be 5-10% below FY17.

There was good news for the listed provider however. Japara’s net RAD cash flow stayed ahead of expectations at $22.7 million for the five months to November 2017.

The provider also expects occupancy to return to its historic level of 94.5%. They have five brownfield and ten greenfield developments in its development pipeline.

Chief Financial Officer Chris Price tells us they are also undertaking a significant refurbishment program, with 10 of their 44 facilities already complete and another 14 due to take place in the next 12 months.

While some of these include transitioning double rooms to singles, he says their primary focus is modernising the facilities.

“It’s an ongoing process, with hundreds of millions to be invested over the next three years,” he said.