The listed operator’s net operating cashflow also fell 11% to $133.8 million this year thanks to staffing costs, the freeze on ACFI funding and the development of new facilities, but it’s not all bad news with revenue per occupied bed up from $283 from $281 in FY17.
Net RAD cashflow is also up to $63 million on the back of an increase in the average incoming RAD to $467,900 from $455,600 in FY17.
In addition, the provider’s plan to make the move into retirement living is taking shape with the first stage of construction soon to start at their Blackburn South site in Melbourne. Over 350 units will be built in nine stages over a 10-year period.
Following its acquisition of Presbyterian Care Tasmania’s three aged care facilities last August, Regis is also predicting further acquisition opportunities in the next 18 to 24 months.
Unsurprising then that The Australian is speculating that a large private equity firm is interested in the listed operator.
Regis has advised the paper that it has not received any approaches and was not aware of any buyer interest, but with more government funding to start flowing to the sector, we expect to see more buyers emerging.