Radius Residential Care Ltd · NZX:RAD
Radius Residential Care — FY2025 Earnings Presentation
30 slides from Radius Residential Care's earnings presentation, May 2025
Slide 1: Full Year Result FY25 Investor Presentation
Full Year Result FY25 I n v e s t or P r e s e n t a t io n
Slide 2: Presenting Today
Presenting Today Brien Cree Andrew Peskett Jeremy Edmonds Founder & Executive Chair Chief Executive Officer Chief Financial Officer BA (Hons), LLB BA, BCom, CA FY25 Investor Presentation 2
Slide 3: Agenda
Agenda Overview of FY25 Performance 01 Delivered record operating and financial performance Analysis of Result 02 Record EBITDA and operating cashflow, demonstrating our leadership in specialist care offerings Executing Radius Care’s Growth Strategy 03 Accelerated execution of our capital-light grow
Slide 4: Our People
LEADERSHIP TEAMS Our Stable, high-performing care home leadership. People “LEARN IT ALL” CULTURE Focused on continuous improvement. RESIDENT CENTRIC RADPRO Decisions at care homes. Unique operating model. EXECUTIVE TEAM STAFF TURNOVER Regular care home visits. Record low of 17%. Radius Glaisdale - H
Slide 5: FY25 Business Highlights
FY25 STRONG OPERATING PERFORMANCE HIGHLY ENGAGED TEAM • Record full-year with a 13% • Over 1,900 team members delivering Business increase in EBITDAR1 per bed. exceptional care in our fully staffed • 20% growth in Underlying care homes. EBITDA2, adjusted for the sale of Highlights • one care home. F
Slide 6: FY25 Financial Highlights
FY25 Financial Highlights Radius Glaisdale - Hamilton Financial Performance Balance Sheet Position • Underlying EBITDAR1 per care • Operating cashflow of $20.1m, +42% • Total assets of $339.6m. bed of $27.9k, +13% from FY24. from $14.1m in FY24. • Investment properties of • Underlying EBITDA $23.5m,
Slide 7: Care Home Certification
Care Home Certification Number/Percentage of Total Care Homes With 4 Years Maximum Gold Standard Certification Four years / maximum gold 18 standard certification1 70% 16 14 Radius Care has 16 care homes with four-year 12 certification (~70% of our 10 care homes). 8 29% 30% 16 26% 6 23% 4 7 7 6 5 2
Slide 8: Analysis of Result
Analysis of Result EBITDA AND CASHFLOW GROWTH DEMONSTRATE OUR LEADERSHIP IN SPECIALIST CARE OFFERINGS Radius St Helenas Radius Millstream - Ashburton FY25 Investor Presentation 8
Slide 9: Financial Performance Overview (excl Arran Court)
Financial Performance Overview (excl Arran Court) Continued strong occupancy, Underlying EBITDA Underlying EBITDAR per Care Bed 1 improved bed mix, Underlying EBITDA of $23.5m, +20% vs pcp Market leading returns (adjusted for the sale of care home) (adjusted for the sale of care home) accommodation
Slide 10: 8% Revenue Growth (excl Arran Court)
8% Revenue Growth (excl Arran Court) Continued strong occupancy, Total Revenue 1 Accommodation Supplements improved bed mix FY25 total revenue +8% vs pcp (adjusted for the sale of care home) and accommodation (adjusted for the sale of care home) supplement growth 12.0 200.0 delivered revenue 11.0 gr
Slide 11: Dividend
Dividend FINAL DIVIDEND DIVIDEND POLICY • FY25 final cash dividend of 0.8 cents per • Revised policy payout range of share (with full imputation credits of 0.31 40%-70% of AFFO. cents per share). • Payout range supports both • Ex-dividend date – 4 June 2025. sustainable dividend growth • Record date
Slide 12: Strategy Execution
Strategy Execution Radius Hampton Court - Napier FY25 Investor Presentation 12
Slide 13: Executing our Capital-Light Growth Strategy
Executing our Capital-Light Growth Strategy Strategic Pillar 1 Strategic Pillar 1 Grow Scale Diversify Revenue Grow Scale RadPro Grow Scale Leased Care Opportunities Grow Cibus Catering Develop RadPro as a fully Targeted M&A Grow RConnect integrated operating platform Brownfield development Expand R
Slide 14: Capacity Expansion
Capacity Expansion ST ALLISA, CHRISTCHURCH BELFAST, CHRISTCHURCH LEASED NEW-BUILD CARE HOMES • 109 bed care home, completing • 4.3Ha site in northern • Capital-light expansion focused on 30 May 2025. Christchurch, to settle mid 2025. on new-build 100 bed care homes • Property will be leased to Radiu
Slide 15: Revenue Diversification
Revenue Diversification CIBUS CATERING HOME SUPPORT • 51% of Cibus Catering Ltd acquired effective 1 • Radius Care has recently been accredited as an October 2024. ACC home care provider. • Provides full-service kitchen management for 2,300 • In addition to private high-acuity clients, the first age
Slide 16: Why We Are Different
Why We Are Culture Different Portfolio Intellectual Property We are not dependent on the property market No care suites The team at Radius Matamata Country Lodge celebrating with RadPro Andrew during his recent record occupancy - 95% Tour around NZ. FY25 Investor Presentation 16
Slide 17: Capital Management Framework
Capital Management Framework Board approved Capital Management Framework and Dividend Policy, supporting a Capital-Light growth strategy. Capital Management Framework Dividend Policy Underlying EBITDA1 Maintain financial resilience and flexibility Medium term target: Net Bank Debt to EBITDA1 Ratio b
Slide 18: Outlook
Outlook Radius Glaisdale - Hamilton Radius Glaisdale - Hamilton TRADING UPDATE OUTLOOK • Occupancy strong – • Radius Care expects key • FY26 will be further 94.4% for April. financial metrics (Underlying boosted by a full year of • 109 new beds EBITDA, EBITDAR per bed Cibus Catering earnings acquire
Slide 19: Appendices
Appendices Radius Hampton Court - Napier FY25 Investor Presentation 19 Radius Taupaki Gables - Auckland
Slide 20: Strong Portfolio for Changing Demographics
APPENDIX 1 Strong Portfolio for Changing Demographics The Radius Care growth pipeline offers unique exposure to a high-acuity, specialised care provider dedicated to delivering compassionate and outstanding clinical care outcomes. With an absolute focus on our core business, Radius Care consistently
Slide 21: National aged care focused portfolio
APPENDIX 2 National aged care focused portfolio with strong regional presence, owning 12 and leasing 11 of the 23 sites nationwide At a Glance 1,789 148 Care Beds ILUs St Allisa (Christchurch) 1,900+ +109 care beds from 31 May Employees ILUs are Independent Living Units FY25 Investor Presentation 21
Slide 22: Key operational and financial metrics
APPENDIX 3 Key operational and financial metrics Operating Metrics DMF terms for Retirement Village units FY25 FY24 FY23 FY22 Number of Care Beds (period end)1 1,789 1,789 1,889 1,784 • 30% over three years • average resident tenure is 4.9 years Average Care Bed Occupancy2 92.8% 91.8% 91.8% 92.5% Un
Slide 23: Statement of Comprehensive Income
APPENDIX 4 Financials ($000) FY25 FY24 Revenue Statement of Revenue 175,286 168,739 Comprehensive Income Deferred management fees 2,129 2,495 Total revenue 177,415 171,234 • Revenue +4% to $177.4m. Change in fair value of investment property 3,088 2,703 • Profit Before Tax +191% to Interest income 1
Slide 24: Statement of Financial Position
APPENDIX 5 ($000) FY25 FY24 Assets Cash and cash equivalents 2,571 2,350 Financials Trade and other receivables Inventories 13,485 579 15,002 554 Statement of Investment properties 77,124 73,528 Financial Position Property, plant and equipment 118,214 117,310 Right-of-use assets 109,529 109,906 Inta
Slide 25: Statement of Cash Flows
APPENDIX 6 ($000) FY25 FY24 Cash flows from operating activities Financials Receipts from residents for care fees and village fees Payments to suppliers and employees 176,188 (145,644) 168,430 (147,285) Statement of Cash Flows Proceeds from the sale of Refundable Occupation Right Agreements 7,140 10
Slide 26: Underlying Earnings and AFFO Calculation
APPENDIX 7 Financials ($000) FY25 FY24 Underlying Earnings Net profit before income tax 10,474 3,599 and AFFO Calculation Non Controlling interest (491) - Net profit attributable to owners 9,983 3,599 Remove: Change in fair value of investment property (3,088) (2,703) Include: Realised gains on resa
Slide 27: Dividend Policy
APPENDIX 8 Dividend Policy Dividend Policy Board approved dividend policy, Dividends are declared at the Board’s discretion, Underlying EBITDA1 and depend on a number of factors, including adopted from FY25 final Radius Care’s financial performance, financial dividend. position, market conditions, f
Slide 28: Directory of care homes
APPENDIX 9 Directory of care homes OWNED LEASED TOTAL CARE CARE HOME LOCATION CARE BEDS CARE HOME CARE BEDS UNITS CARE HOME LOCATION UNITS BEDS Kensington Hamilton 96 St Helenas Christchurch 52 - Leased 923 - Potter Home Whangarei 55 Thornleigh Park New Plymouth 87 - Rimu Park Whangarei 55 Owned 866
Slide 29: Important Notice and Disclaimer
Important Notice This presentation has been prepared by Radius Residential Care Limited (“Radius Care”), for informational purposes. This disclaimer applies to and Disclaimer this document and the verbal or written comments of any person presenting it. This presentation sets out information relating
Slide 30: Thank You
Radius Glaisdale - Hamilton Thank You FY25 Investor Presentation 30
Radius Residential Care — FY2025 Earnings Presentation on 6ix