Radius care

[Basil]

How is it that they can earn $31K EBITDA per care bed and all the other retirement companies are bleating like lambs lost from their mothers that the Govt is not paying enough and their lackluster return its someone else's fault ?  All the others with their care looks like fools compared to RAD.

[ValueNZ]

How is it that they can earn $31K EBITDA per care bed and all the other retirement companies are bleating like lambs lost from their mothers that the Govt is not paying enough and their lackluster return its someone else's fault ?  All the others with their care looks like fools compared to RAD.

Because they bullshit their earnings.

EBITDAR

[Stockgathering]

How is it that they can earn $31K EBITDA per care bed and all the other retirement companies are bleating like lambs lost from their mothers that the Govt is not paying enough and their lackluster return its someone else's fault ?  All the others with their care looks like fools compared to RAD.

Yea, very much an outlier, as well none of the others are paying an imputed dividend. RAD pays and even increased their dividend AND bought some of their own share back. No cash flow problems with this company, very refreshing.

[Stockgathering]

Because they bullshit their earnings.

EBITDAR

ValueNZ, could you explain more? I must be missing something.

[Dolcile]

Must be making decent money because they are paying tax (unlike SUM, RYM etc) and therefore able to paying increasing fully imputed dividends

But Value I'm very curious to read your views?

[Shareguy]

Second half not as good. But yes a good result. They lease most of their building which may explain some of the difference in the care bed revenue?

[Buzz]

How is it that they can earn $31K EBITDA per care bed and all the other retirement companies are bleating like lambs lost from their mothers that the Govt is not paying enough and their lackluster return its someone else's fault ?  All the others with their care looks like fools compared to RAD.

Might it have something to do with targeting the much higher acquity care strategy and the corresponding much higher government funding per bed. Makes sense for an RV that has relatively low owned assets and runs a profitable niche care model, with higher turnover as well.

There is very little that is comparable though to the other listed RV's, their business models are quite different.

[Plata]

Pretty steady as she goes result really. H1 vs H2:
revenue $100 vs $102 mill (+2%)
expenses $93 vs $98 (+5%) - employee costs $59 vs $64 (+8%), depreciation/amortisation $5.7 vs $7.5 key contributors
The employee costs seem strong however may be due to recent growth not making it to revenue line yet as EBITDAR per bed still rose half to half and this is "adjusted" to account for the growth. An element of trust there to keep it clean.

They booked a $1.4 million depreciation charge on WIP care assets by the look of it too, which didnt exist in H1 and accounts for alot of the discrepency between halves. I'm wondering if they are just immediately depreciating some of the capex spend to refurb the recent acquisitions using those new accelerated depreciation rules? Occupancy is basically almost as high as you can get it now so any growth from H1 onwards is what should dicate the growth price premium. I had hoped H2 would be similar to H1 at the NPAT level, still good value at current price but not motivated to add at this point.

[Dolcile]

After a deeper review of the annual report I decided to sell down my shares today. Mainly because when you strip out the fair value adjustments the second half profit before tax ($4.3m) is down some 38% compared to the first half profit before tax ($6.9m).

[Auto Rower]

Big buys this morning ,the continually Improving dividends appealing for some.
 Including me   

[Auto Rower]

https://www.nzx.com/services
 Getting more like its true value at the moment ,& a good dividend stock

[Auto Rower]

https://www.nzx.com/announcements/483430
 Becoming a very good regular dividend payer now & great result yet again in a very difficult Sector, funny that init

[Greekwatchdog]

https://www.nzx.com/announcements/483430
 Becoming a very good regular dividend payer now & great result yet again in a very difficult Sector, funny that init

Not really, its a very small player that has been a buy and add villages successfully to the business. The issue now for them since they have gone to buy and build is whether they can continue the momentum and control costs and continue to keep industry standard occupancy.

Here is a little of what For Bar said this mornings note.
Radius Residential Care (RAD) delivered a softer-than-expected 1H27 result, with underlying EBITDA declining -3% year-on-year to NZ$14.4m. Care operating performance was the key driver, with occupancy below our forecast and operating expenses above expectations. Lower year-on-year resales and the timing of new unit settlements were also drags. Management's first-time FY27 underlying EBITDA guidance of more than NZ$30m, however, implies a stronger second half. We view this as achievable, supported by expected new villa sell-through and a six-month contribution from Sprott House (acquired in May 2026). Improved occupancy through spring and summer should also be supportive. RAD finished 1H27 with elevated net debt to underlying EBITDA of 3.4x versus its 2.5x target. We see debt reduction as a key near-term priority, although expected 2H27 improvements in EBITDA and cash flow from villa sales should help. We lower our occupancy and EBITDAR per bed assumptions, and our blended spot valuation falls by -NZ3c to NZ$0.50.

[Auto Rower]

 Explain why not really greek watchdog!! cause its a small player doh I could not give a monkeys how big or small a company is its regular profits and imputed dividends that count .
 I say its been paying good regular dividends for a few years now fully Imputed at 7.5% gross now & your saying its small so what .
 Oh for barr rate it at 50 c lets all follow those guys ,Radius is a group of health services not just a R V provider .
 Don't rate them fine just make it logical or financial  reason, Remember Size does not matter Apparently a well held theory unless you holding Ryman
 

[Greekwatchdog]

Explain why not really greek watchdog!! cause its a small player doh I could not give a monkeys how big or small a company is its regular profits and imputed dividends that count .
 I say its been paying good regular dividends for a few years now fully Imputed at 7.5% gross now & your saying its small so what .
 Oh for barr rate it at 50 c lets all follow those guys ,Radius is a group of health services not just a R V provider .
 Don't rate them fine just make it logical or financial  reason, Remember Size does not matter Apparently a well held theory unless you holding Ryman
 

Because there cost base is static where the major players have built complexes and then have had to put staff in with low occupancy. It takes time to get these occupied which means costs on buisness especially if units remain empty for protracted period.