Radius Residential Care Limited (NZX: RAD) released its audited financial statements for the year ended 31 March 2025, confirming another record operating and financial performance.

 

Key financial highlights:

“Radius Care is a specialist provider of essential healthcare services across New Zealand. Strengthening occupancy in our aged care business demonstrates there is ongoing demand for high quality residential aged care services, and in particular for high acuity hospital care” said Brien Cree, Radius Care’s Founder and Executive Chairman.

 

People

Andrew Peskett, Radius Care’s CEO, commented, “Radius Care has over 1,900 exceptional people in our team, providing exceptional care to our residents. Our people provide such a high standard of care that we have increased the number of care homes with the maximum four-year certification to 16 (from seven last year). Importantly, our people are very engaged – staff turnover has reduced to 17%. We are excited to welcome the residents and team at St Allisa in Christchurch to Radius Care later this month.”

 

Business performance

Mr Peskett said a number of factors drove the record operating performance:

  1. Strong aged care occupancy, averaging 92.8% for FY25 (vs 91.8% for FY24), and lifting to 93.9% in the last week of FY25.
  2. Improved mix, with higher revenue, high-acuity hospital and ACC-supported admissions.
  3. Increased Accommodation Supplement revenue (+$1.0m / +11% vs FY24).
  4. Contribution of Cibus Catering (51% interest acquired on 1 October 2024).
  5. Reduced debt and lower interest rates decreasing interest costs by $3.4m.”

 

Financial performance

 

Dividend policy

The Board has adopted an updated dividend policy with a payout range of between 40% and 70% of AFFO. This is expected to support both sustained dividend growth and increased retained cash for growth investment and debt reduction.

 

Dividend

The Board has declared a final dividend of 0.8 cents per share for the FY25 year, 14% above the FY24 final dividend, bringing total FY25 dividends to 1.45 cents per share (47% of AFFO). The final dividend will carry full imputation credits, resulting in a gross dividend of 1.11 cents per share, and will be paid on 19 June 2025. The Board has determined that the Dividend Reinvestment Plan (DRP) will not apply to this dividend.

 

Execution of our capital-light growth strategy

The recent acquisition, sale, and leaseback of the 109-bed St Allisa care home, expected to be completed on 30 May 2025, will expand our core business with minimal capital commitment. Radius Care is actively progressing projects with private investors to deliver purpose built leased care homes from FY27. In addition, a new 100-bed care home is planned to be constructed in Christchurch and leased to Radius Care, with first admissions in 2027.

Revenue from additional services within the aged care sector grew during the year. The 51% interest in Cibus Catering delivered incremental EBITDA (after minority interest) of $0.5m from 1 October. Radius Care has commenced home care services: the company provides high-acuity private home care to several clients and has been recently accredited as an ACC supplier. The first ACC-supported clients have been transitioned to Radius Care.

 

Outlook

Trading during the first weeks of FY26 is ahead of the prior period, with occupancy of 94.4% in April 2025 (compared to 93.9% in the last week of FY25).

Radius Care expects continued growth in key financial metrics (Underlying EBITDA, EBITDAR per bed and AFFO) in FY26, further boosted by a full year of earnings contribution from Cibus Catering Limited, and the addition of St Allisa’s 109 beds to the portfolio from 31 May 2025.

We’re proud to announce our acquisition of St Allisa care home in Christchurch, currently operated by Arvida and with the official handover on 30 May, further strengthening Radius Care’s national presence.

Radius Care has entered into an agreement to acquire the business and assets of the St Allisa care home in Christchurch for NZ$14.7 million.

The agreement is conditional only on usual regulatory approvals. Settlement is expected to take place on Friday, 30 May 2025. The acquisition includes a sale and leaseback of the land and buildings with Warehouse Storage Limited that would also be settled on 30 May 2025. The property will be sold for $13.6m and leased back to Radius Care for an initial term of 30 years with two 10-year rights of renewal. The balance of the acquisition price (NZ$1.1 million) will be funded from working capital. The transaction represents further execution of Radius Care’s growth strategy. St Allisa is a large-scale care home comprising 109 care beds, including hospital and dementia care.

“The acquisition of St Allisa aligns closely with Radius Care’s commitment to providing high-quality, high-acuity care across New Zealand. We’re proud to welcome the residents and staff of St Allisa into the Radius Care family,” said Brien Cree, Executive Chair and Founder.

CEO Andrew Peskett noted “This marks Radius Care’s 24th care home and further strengthens our presence in Christchurch. It’s a meaningful step in our growth strategy as a health services provider and reflects our focus on expansion through the acquisition of large, well-located facilities. With Radius Care’s industry leading EBITDAR per bed of NZ$27.9k p.a. the acquisition is expected to be earnings accretive in FY26 and provide significant earnings upside potential in the future”.

Radius Residential Care Limited (NZX: RAD) (Radius Care) today confirmed that operating results for the financial year ended 31 March 2025 (FY25) were materially ahead of the prior year, due to strong trading during the final quarter.

Preliminary Key FY25 Financial Metrics (Subject to Completion of Audit):

 

“As a specialist care provider with a clear focus on our core business, Radius Care’s exceptional people have once again delivered industry leading results and profitable growth across the Group. Our strong occupancy demonstrates there is ongoing demand for high quality residential aged care services, and in particular for high acuity hospital care” said Brien Cree, Radius Care’s Executive Chair.

Radius Care intends to release its full audited financial results for the FY25 year in late May 2025.

 

Business Performance

Andrew Peskett, Radius Care’s CEO, commented “the strong operating performance in FY25 was driven by a number of factors and gives Radius Care a strong foundation for continued growth:

1.       Exceptional people leading our 1,700 committed team members delivering exceptional care in our care homes.

2.     Increased Accommodation Supplement revenue (+$1.0m / +11% vs FY24).

3.     Strong occupancy and improved mix, with higher-revenue Hospital and ACC occupancy.

4.     Contribution of Cibus Catering (51% interest acquired on 1 October 2024).

5.     Reduced debt and lower interest rates decreasing interest costs by $3.4m.”

 

Dividend

As previously announced, Radius Care has returned to the previous cycle of an interim dividend paid in December and a final dividend paid in June, both carrying full imputation credits.  The Board expects to announce a final dividend in May 2025 when audited financial statements for FY25 are released.

[1] These measures are non-GAAP (unaudited) financial measures. A reconciliation between the financial statements and these measures will be included within the Investor Presentation in late May 2025.

Radius Residential Care Limited (NZX: RAD) today announced its results for the six months ended 30 September 2024.

Highlights:
• Underlying EBITDA of of $10.6m1, adjusted for the sale of one care home, was 14% up on comparative period (pcp).
• EBITDAR per bed was $13.4k2 for the half year, up 10% on $12.2k for the six months ended 30 September 2023.
• Net Profit After Tax was $2.0m, up 39% on the pcp.
• Operating Cashflow of $6.6m, up $1.0m on the pcp.
• Occupancy was 93.4% at period end, ahead of industry average.
• Financing costs decreased by $1.8m, or 35%, on the pcp.
• Interim cash dividend of 0.65 cents per share, fully imputed.
• Acquisition of 51% of Cibus Catering, completed on 25 October 2024.

People
“I want to give immense thanks to our exceptional people, who have continued to deliver exceptional care to our residents. Radius Care has once again delivered industry leading results and continued earnings growth despite having one less care home in our portfolio following the sale of Arran Court in January 2024” said Andrew Peskett, Radius Care’s CEO.

Certification audit results achieved during the first half of this financial year are testament to the quality of care provided to our residents. Currently, 15 of our care homes have attained the maximum four-year certification period (up from seven as at 31 March 2024), with another two likely, following recent audits.

Business Performance

Radius Care’s business has delivered growth in all key metrics. Occupancy levels remained strong and above industry averages, lifting to 93.4% at the end of the period. The strong operating performance was assisted by improved bed mix, growth in accommodation supplement revenue and tight cost control. “The quality of our operating performance and industry leading results positions Radius Care for accelerated growth. The recent acquisition of a 51% stake in Cibus Catering, a specialist provider of catering, menu and nutrition planning to the Aged Care sector, will immediately contribute to growth”, said Mr Brien Cree, Radius Care’s Executive Chair. 1 Underlying EBITDA is a non-GAAP (unaudited) financial measure. A reconciliation is
included within the Investor Interim Report and the Investor Presentation. 2 Earnings before interest, tax, depreciation, amortisation and rent.

Financial Performance

Radius Care’s key performance measure, Underlying EBITDA, was $10.6m, 14% up on the pcp, adjusted for the sale of one care home. EBITDAR per bed was $13.4k for the six months ended 30 September 2024 (an increase of 10% on the pcp). These results were driven by stronger operating metrics across the business, despite having one less care home in the portfolio. Net Profit After Tax was $2.0m (up 39% on the pcp). Other financial metrics all demonstrated growth on the pcp. Revenue increased 7% on the prior period to $85.4m (adjusted for the sale of one care home). Operating Cashflow was $6.6m (up 18% on the pcp).

Dividend

A cash interim dividend of 0.65 cents per share has been declared for the half year. The dividend will carry full imputation credits, resulting in a gross dividend of 0.90 cents per share. The dividend will be paid on 19 December 2024, with a record date of 5 December 2024. The Board has determined that the Dividend Reinvestment Plan will not apply to this dividend.

Development Update

Radius is actively pursuing several opportunities to lease or acquire care homes, including partnering with Senior Trust as announced at the annual shareholders
meeting. An application for resource consent has been made for the development of six additional villas at Matamata Country Lodge.
Advance planning is also continuing for the previously announced full-service retirement village and care home in Belfast, Christchurch.

Cibus Catering

Radius Care’s acquisition of 51% of Cibus Catering completed on 25 October. Cibus provides full-service kitchen management to 25 sites, including ten Radius Care homes, as well as menu planning and nutrition services. Cibus represents an important step in our strategy to accelerate growth through diversification into adjacent services that are complementary to our core offering.

Outlook
Radius Care reiterates earlier guidance that key metrics for full year FY25 are expected to exceed the equivalent FY24 metrics despite having one less care home. The consolidation of the recently acquired 51% stake in Cibus Catering Ltd will also be immediately earnings accretive.

Radius Care has acquired 51% of Cibus Catering. The NZX announcement can be read here.

This acquisition represents another significant step in Radius Care’s strategy to diversify revenue and accelerate growth, and we’re thrilled to welcome the Cibus team to our Group.

Forsyth Barr have initiated coverage on Radius Care. To read the report, please click the link below:

Radius Care Aged Care focus drives superior returns 2024

Radius Care (NZX: RAD) has completed the previously announced sale of the Arran Court care home, located in Te Atatu, Auckland.

Net sale proceeds of $18.3m have been applied to repay existing ASB borrowings.

Radius Care also announces that the ASB has agreed to amend the expiry date of the remaining $4.7m short term borrowings from 31 January 2024 to 1 November 2026, for consistency with the majority of Radius Care’s term borrowings. As part of the facility extension, ASB has also agreed to remove any requirement to further reduce debt, representing completion of the debt management program agreed with ASB, and referred to in Radius Care’s 2023 Annual Report.

Brien Cree, Executive Chair, said “The sale of Arran Court has materially reduced debt levels. A strengthened balance sheet and the strong operating performance seen in our year to date results ensures Radius Care is in a strong position to accelerate our growth strategy.”

Following the successful completion of the Arran Court sale, extension of ASB debt maturity dates and strong trading performance in FY24 to date, no further asset sales are required.

Radius Care Delivers 50% Uplift in First Half Year Underlying EBITDA Radius Residential Care Limited (NZX: RAD) today announced its results for the six months ended 30 September 2023, the first half of the FY24 year.

Highlights:

“We are a specialist care provider with a clear focus on our core business. Radius Care has once again delivered industry leading results and a strong financial performance, which is a testament to our exceptional people who have continued to deliver exceptional care to our residents” said Andrew Peskett, Radius Care’s CEO.

People
“I want to give immense thanks to our staff for their resilience over the last few years and the way they’ve continued to offer the very best of Radius Care to our residents every day. The results we’ve achieved point to our operational capability as well as the commitment of our team”.

Radius Care is fully staffed. The overseas nurse recruitment programme was intensified last year and Internationally Qualified Nurses were successfully recruited to fill all vacancies. These new team members have completed their New Zealand accreditation as Registered Nurses and are leading the exceptional Radius Care provided to our residents.

Business Performance
Radius Care’s business has delivered strong growth across its key metrics. Occupancy levels remained strong and above industry averages. Occupancy for September averaged of 93.0%. The strong operating performance was assisted by staffing stability, reduced external staffing costs and improved mix. We also increased our accommodation supplement revenue for our premium rooms, and new funding levels in place from 1 July 2023 boosted revenue in the second quarter.

1 Underlying EBITDA is a non-GAAP (unaudited) financial measure. A reconciliation is included within the Investor Interim Report and the Investor Presentation.

“The establishment of RConnect has been a highlight of the first half year. Our internal staffing bureau has been a key factor in controlling our cost base, through reducing external staffing costs. More recently, RConnect is also sourcing staff for external customers” said Mr Brien Cree, Radius Care’s Executive Chair.

“The quality of our operating performance and financial results of the last six months demonstrate the value of our clear focus on our core business. We’re continuing to position our operations in line with Radius Care’s strategy to deliver accelerated growth and continue to go from strength to strength”.

Financial Performance
Revenue increased 21% on the prior period to $84.5m excluding other income. Radius Care’s key performance measure, Underlying EBITDA, was $10.5m, compared to $7.0m achieved for the comparative period. The result was driven by stronger operating metrics across the business.

AFFO of $2.9m was earned, 16% up on the $2.5m earned in the comparative period. Net Profit After Tax was $1.4m, down 18% on $1.7m for the comparative period, which included $1.8m of one-off gains related to previously leased properties.
Radius Care recently confirmed the short-term bridge facilities held with ASB Bank had been extended for four months to be repaid on 31 January 2024, recognising the progress on Radius Care’s debt management programme. The sale of one care home is due for settlement on 16 January 2024, and the expected net sale proceeds of approximately $19m will repay debt. With the Board actively progressing the sale of another care home, Radius Care will be in a stronger position and able to progress its planned growth strategy more rapidly.

Development Update
During the last two years, Radius Care has completed four large property transactions, acquiring the land and buildings of eight care homes that were previously leased, and the acquisition of two integrated care homes and retirement villages. These acquisitions have increased the opportunities for brownfield developments to expand these facilities without adding significant additional fixed overhead.

Planning, preparation and consenting has continued on brownfield developments at Taupaki Gables in West Auckland and Lexham Park in Katikati, which will extend these sites. Advance planning is also continuing for the previously announced full service retirement village and care home in Belfast, Christchurch.

Outlook
Radius Care expects the improved operating results and momentum in the first half
of FY24 to continue for the remainder of the year.

The Board expects to resume dividend payments following the completion of the debt
management programme.

Radius Care (NZX: RAD) is pleased to confirm the extension of the $23 million bridge facilities with ASB to 31 January 2024.
Sale proceeds from the previously announced sale of the Arran Court facility will be applied to repay the majority of these facilities, representing significant progress in meeting the goals of the company’s debt management program.

For further information, please contact:
Andrew Peskett
Chief Executive Officer
Phone: +64 21 747 363
Email: andrew.peskett@radiuscare.co.nz

Jeremy Edmonds
Chief Financial Officer
Phone: +64 22 650 9354
Email: jeremy.edmonds@radiuscare.co.nz

Radius Care (NZX: RAD) has signed an agreement to sell the Arran Court facility, located in Te Atatu, Auckland.

The sale is for 100% of the business, including the freehold property. The sale proceeds are approximately $19.0m (net of sale costs), with settlement planned on 16 January 2024.

The sale is conditional on ASB approval. The pending transaction is also conditional on the purchaser completing satisfactory due diligence and obtaining finance and regulatory approvals. All conditions are due to be satisfied by 30 November 2023.

Brien Cree, Executive Chair, said “Our people at Arran Court have been an important part of the Radius Care community since 2007. We will work closely with the purchaser to ensure a smooth transition and continuity of the care standards our residents and their families expect”.

The sale proceeds will be applied to repay existing debt, representing significant progress in meeting the goals of the debt management program (as outlined in Radius Care’s 2023 Annual Report).

For further information, please contact:
Andrew Peskett
Chief Executive Officer
Phone: +64 21 747 363
Email: andrew.peskett@radiuscare.co.nz

Jeremy Edmonds
Chief Financial Officer
Phone: +64 22 650 9354
Email: jeremy.edmonds@radiuscare.co.nz