Listed private operator Regis, with 65 aged care homes and 7,200 beds, has announced a drop in EBITDA of 24%, following Japara yesterday at 34% down and Estia down 18% last week.
Importantly, whilst acknowledging “new residents have not been entering care in the usual numbers and this is a nationwide trend”, Regis managed to hold occupancy at 90.3% despite five of its 18 homes in Victoria having experienced at least one case of COVID.
Despite concerns about a run on RADs, supported by 10 new homes and acquisitions, their RAD pool increased slightly. Expressing caution, Regis has placed a hold on new development and sold for $21 million a trophy site on the beach on the Gold Coast.
50 back-office staff were made redundant.
Interestingly the company made one acquisition of two aged care homes with a total capacity of 173 beds from community-based Lower Burdekin Home for the Aged Society. Regis notes “net consideration paid was $Nil with net assets acquired of $4.6 million”.
Also interesting is that the underlying staff expenses/ratio increased from 69.3% to 72.6% over the 12 months, approximately equalling Japara’s staff expense ratios.
The board also identified the appointment of Linda Mellors as the Managing Director and Chief Executive Officer in September 2019, bringing with her over 15 years leading health and aged care, most recently as COO at Not For Profit Mercy Health, as significant.
