Radius Care Reports Strong 1QFY25 Performance and Strategic Developments

Highlights:

• Radius Care (NZX: RAD) reports strong financial performance in 1QFY25.
• Interest costs decreased significantly, and village unit resales show positive progress.
• New partnership with Senior Trust expected to add up to 400 beds over five years.

Financial Performance FY25

Radius Residential Care Limited (NZX: RAD) has reported a robust start to FY25, with significant improvements across key metrics compared to the first quarter of FY24. The company attributes this strong performance to increased occupancy rates and higher underlying EBITDAR per bed.

Key Highlights:

• Improved Occupancy and EBITDAR: Radius Care saw an uptick in occupancy rates and underlying EBITDAR per bed, outperforming both the first quarter of FY24 and the entire FY24.
• Reduced Interest Costs: The company's interest expenses decreased significantly from $2.4 million in 1QFY24 to $1.7 million in 1QFY25, reflecting better financial management and cost efficiency.
• Village Unit Resales: Radius Care made significant progress in reselling village units, with all vacant stock now under contract and expected to settle within the calendar year 2024.

Despite operating one less care home (Arran Court), Radius Care maintains its guidance that key metrics for the full year FY25 will surpass those of FY24.

Additional Lease Opportunities

In a strategic move to expand its footprint, Radius Care has signed a non-binding Memorandum of Understanding with Senior Trust. This collaboration aims to provide premium care solutions in partnership with retirement village operators, enhancing Radius Care’s growth strategy by delivering top-tier care in newly built facilities.

This partnership is anticipated to add up to 400 new beds over the next five years, with two projects already in the pipeline. The initiative underscores Radius Care's commitment to growth and excellence in care provision.

Strategic Growth and Market Impact

Radius Care’s strategic initiatives and strong financial performance position the company well for continued success in FY25. The collaboration with Senior Trust marks a significant milestone, potentially increasing the company's capacity and service quality.

In the context of a volatile market, Radius Care's steady growth and strategic expansions offer a beacon of stability and promise for investors and stakeholders.

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