Radius Residential Care (RAD) H2 2025 earnings summary

Executive summary

• Achieved record operating and financial performance for FY25, with EBITDA per bed reaching $28,000 and underlying EBITDA growing 20% year-over-year.

• Occupancy averaged 92.8% for FY25, peaking at 95% recently and reaching 93.9% at year-end, supported by a stable leadership team and record-low staff turnover of 17%.

• Expanded portfolio with the acquisition of St Allisa care home (109 beds) and a 51% stake in Cibus Catering, enhancing service offerings.

• Benefited from favorable industry dynamics, including rising demand for high-acuity aged care services and improved care mix.

• Declared a record dividend, up 14% from the prior year, with a payout ratio of 47% of FO/AFFO.

Financial highlights

• Underlying EBITDA rose 20% year-over-year to $23.5m, adjusted for a care home sale.

• EBITDAR per occupied bed increased 13% to $27.9k; AFFO up 18% to $8.8m.

• Operating cashflow increased 42% to $20.1m; net debt reduced by $5.8m to $67.7m.

• Net profit after tax surged 187% to $7.4m; profit before tax up 191% to $10.5m.

• Final dividend of $0.008 per share (fully imputed), total FY25 cash dividend of $0.0145 per share, with payout at 47% of AFFO.

Outlook and guidance

• FY26 expected to exceed FY25 in key metrics, with April 2025 occupancy at 94.4% and all major financial indicators forecast to improve.

• Full-year contribution from Cibus Catering and addition of St Allisa's 109 beds to further boost FY26 results.

• Further M&A and new service lines, including home care, expected to drive growth.