The listed provider is facing the same challenges as Regis and Estia, recording a fall in its NPAT from $7.6 million in FY19 despite achieving a 10% increase in revenue to $212.6 million for the six months.
Its occupancy was still above the industry average, hitting 93% in February 2020 compared to just under 90% for the sector average.
“The first half of FY2020 was a difficult period across the aged care sector with ongoing margin compression combining with declining occupancy as elevated levels of supply continue,” CEO Andrew Sudholz said.
Costs have been increasing at rates above revenue on a like-for-like basis across its 50 homes, he added, with wage increases of 2.5% above the ACFI indexation of 1.4% for FY20.
As a result, Japara says it still expects its FY20 EBITDA (currently up 10% to $24.3 million) to be 10% lower on FY19.
The figures have not caused the provider to hit pause on its developments like Regis, however. Japara has 844 aged care beds in the pipeline, plus three retirement living projects in development.
Interestingly, the provider notes that it provides Registered Nurses in every home 24/7, plus spends over 100% of its care revenue from the Government on the costs of care.
