Radius Residential Care Limited (NZX: RAD) Announces Half Year Results of FY22

Monday 29th November 2021

Radius Residential Care Limited (NZX: RAD ) has announced unaudited half year underlying EBITDA of $11.2 million for the six months ended 30 September 2021, a reduction of $1.2 million compared to the prior corresponding period (prior period). Revenue increased 8% on the prior period to $66.3 million. AFFO was consistent with the prior period at $2.3 million.

Brien Cree, Executive Chairman, noted good progress with key performance metrics: high care bed occupancy levels; increasing accommodation supplements, consistent EBITDA per care bed as well as strong progress against Radius Care’s strategic pillars. In addition, there had been several key events in the first half of the 2022 financial year that saw Radius Care continue to deliver significant milestones against strategy.

“In July we were able to secure the opportunity to acquire the land and buildings of four aged care facilities that Radius Care has leased for quite a number of years. And in early October we announced the acquisition of an integrated care facility and retirement village in Invercargill. Our portfolio now stands at 23 properties, 1,784 beds and 101 village units located between Paihia and Invercargill. We currently have a landbank of 194 care beds and 166 independent living units” said Mr Cree.

Dividend

A dividend of 0.7 cents per share including full imputation credits has been declared for the half year and will be paid on 23 December 2021. The dividend payout for the first half represents 60% of forecast reported FY22 AFFO, in line with the policy to distribute to target a pay-out ratio of 50% to 70% of AFFO. The interim and final dividends in total are expected to be similar to the 1.46 cents per share paid for the FY21 year.

Outlook

Mr Cree commented “Radius Care is in good shape and is well placed to continue its growth phase, guided by a clear and deliverable strategy. In the near term, COVID-19 continues to present a significant challenge with a proportion of the additional costs of operating an essential service unable to be recovered from income set under annual negotiations with the Government”.

The Radius Care board expects underlying EBITDA of $21.5m-$23.0m for the full year, slightly lower than the $23.4m earned in FY21, and AFFO of $4.0m-$5.0m compared with FY21’s $3.7m. On a pro forma basis, underlying EBITDA of $22.4m-$23.9m and AFFO of $5.2m-$6.2m is expected.

Please see the links below for details

Media Release

Investor Letter

Half year Results Presentation

Half year Financial Statements

NZX Results Announcement

NZX Interim Distribution Announcement

Source: Radius Residential Care Limited

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