38 | Quality of care underpins record earnings Radius Care CEO Andrew Peskett: “Our expertise is in providing exceptional care...” Radius Residential Care T T Bernadette Cooney REGIONAL DEVELOPMENT Radius Residential Care continues to buck trends in New Zealand’s aged care sector, posting stronger than expected results for the financial year ended March 2025, and strong expectations for the group in the first half of 2026. While other rest home operators are struggling with market volatility, Radius has emerged with record earnings, surging occupancy, and a balanced strategy in aged care delivery and profitability. The company, which listed on the NZX in 2020, has announced its EBITDA was $23.5m in 2025, up from $20.9m in 2024. The board expects first-half 2026 underlying EBITDA to be between $12m and $15m, compared to $10.6m reported in the first half of this year. Additionally, interest savings of over $1million are expected to boost AFFO and Net Profit After Tax. These results have nearly trebled the company’s share price over the past 12 months, and much of its strong performance could be attributed to strong occupancy rates and mix of high acuity hospital and ACC-funded occupancy, increased accommodation supplement revenue, and reduced debt through realised re-sales gains. Radius Care CEO Andrew Peskett says the difference between their operating model and some sector peers was that Radius focused on providing quality care, rather than relying heavily on sales of retirement village units. “The higher interest rate environment has seen a pivot in strategy towards higher capital-light acquisitions, obtaining additional revenue streams and acuity, higher revenue-stream beds in our care homes. Our expertise is in providing exceptional care, and because of that our occupancy is currently 95%,” says Andrew. Radius Care was established in 2003, and today operates 24 aged care homes nationwide, approximately half of which it owns and half it leases. Four retirement villages are in the portfolio, which includes 1900 beds and a focus on care delivery for high-acuity and end-of-life care. “The company has also increased the number of its care homes that have achieved the maximum four-year certification, an indicator of the highest quality of care, to 16 from five several years ago,” Andrew says. The company began delivering services under the ACC Maximum Independence contract earlier this year, offering specialist homebased care nationwide. “This marks another step in diversifying revenue and reaching clients earlier in their care journey,” says Andrew. “We are supporting people to recover from injury and providing in-home support for people with complex needs.” Key to the company’s aim to expand its bed capacity is its capital-light expansion model, says Andrew, which involves leasing existing, well-located care homes, or partnering with developers to build new. “We are finding success in this strategy,” says Andrew. “We’re paying roughly a third of our EBITDA per bed in rent, and still generating strong margins. It is scalable and sustainable, and one way of addressing the expected 10,000bed shortfall in aged care over the next decade.” With an experienced team of 2000 staff nationwide, a diversified business strategy, and momentum gained, Radius Care expects further profit growth in the first half of 2026 and intends providing more colour on these numbers at its annual shareholder meeting on August 7. Insurance with nothing to hide. No Hidden Fees. No Hidden Commissions. Total Transparency. Business | Personal | Life & Disability | Group Employee Benefits Contact Us info@dbib.co.nz | +64 (9) 215-3371 www.donaldsonbrown.co.nz E S S E N T I A L T O H E A LT H Contact us to see how we can help you on 0800 18 17 16 or eboshealthcare.co.nz EBOS Healthcare working in partnership with Radius Residential Care
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