Radius Residential Care (RAD) investor relations material

Executive summary

• Achieved record operating and financial performance for FY26, with profit before tax up 37% to $14.3m and net profit after tax up 34% to $9.5m year-over-year.

• Net profit before tax, net profit after tax, and AFFO all increased 34%-44% year-over-year for FY26.

• Underlying EBITDA grew 17% to $27.4m, driven by strong occupancy and improved care mix.

• Final cash dividend increased 50% to 1.2cps, with total FY26 dividends yielding 8%.

• Strategic acquisitions and new developments, including Karori and St Allisa, expanded the care home portfolio and supported growth.

Financial highlights

• Total revenue grew 14% to $202.3m, supported by higher occupancy and accommodation supplement revenue.

• Underlying EBITDA reached $27.4m, up 17% year-over-year.

• AFFO was $12.7m, up 44% year-over-year, supporting a higher dividend payout.

• Care operating margins (EBITDA per care bed) rose to $31.1k, up 11% year-over-year.

• Financing costs decreased 25% to $4.6m, and leverage ratio improved from 2.9x to 2.5x.

Outlook and guidance

• Expects continued growth in key financial metrics for FY27, with additional earnings from the Karori acquisition and ORA unit sales.

• Accelerated development of new-build care homes planned, supported by a strong project pipeline and private investors.

• Budgeting for a 2% government funding uplift, with clarity expected by June or July.

• No significant cost pressures anticipated; minor supplier increases noted but not material.

• Portfolio expansion and favorable industry dynamics underpin positive outlook.