Regis bed occupancy 92.8% and earnings down 7%

Delivering a solid $24.4 million after-tax profit from six months trading, residential aged care operator Regis noted ‘occupancy headwinds’, government cuts to aged care funding, indexing, and increased expenses – including $300,000 for the Royal Commission – for a 7% reduction in earnings.

They still invested $42.6 million in new developments and refurbishments. They are currently holding 1,200 unused bed licenses against a development pipeline 600 beds.

While there average RAD held is $378,000, new RADs over the six months averaged $478,000, with 56% of residents paying 100% RADs. They now hold over $1 billion in RADs for residents.

The average resident stays 2.86 years.

Shareholders will be happy however – they paid out 100% of the $24.4 million profit as fully franked dividends.