Radius Residential Care Limited Analysis

Overview

Radius Care is a New Zealand owned and operated company, established in 2003 to meet New Zealand’s growing demand for an aged care and associated health care services. Since then, Radius has become one of the leading specialist health care providers in New Zealand, with more than 20 locations nationwide.

Early in 2010, chief executive and director Brien Cree led a management buyout of the company, which brought it back into New Zealand ownership from foreign investors. Brien's vision was to “bring some good old fashioned Kiwi values and standards” back into the aged care sector, and to make Radius Care the best aged care provider in the country.

Performance

The following information has been extracted from Radius Care's Full year results, released 13 May 2026

Highlights:

• Profit Before Tax was $14.3m, up 37% on FY25

• Net Profit After Tax was $9.5m, up 34% on FY25.

• Available Funds from Operations1 (AFFO), was $12.7m, up 44% on FY25.

• Underlying EBITDA of $27.4m2, up 17% on FY25.

• Annualised EBITDAR per bed (on a same site basis) was $31.1k3 for the period, up 11% on $27.9k reported for FY25.

• Final cash dividend of 1.2 cents per share (fully imputed), up 50% on the previous final dividend of 0.8 cents per share.

• Occupancy averaged 94.9% for the period, up 2.1 percentage points on FY25.

Business Performance

Radius Care’s business has reported another strong operating and financial performance for the year, delivering growth across all metrics. Occupancy was maintained at high levels, averaging 94.9% for the year. Continued accommodation supplement growth and disciplined management of operating costs led to Care EBITDAR per bed growing to $31.1k3, 11% above the $27.9k reported for FY25. With limited vacant retirement village unit stock as of 30 September 2025, second half resales gains were at a lower level than the first half.

Financial Performance

Profit Before Tax and Net Profit After Tax for the year included the benefit of lower bank interest costs of $4.7m, a decrease of $1.5m on the pcp. Profit Before Tax increased to $14.3m (up 37% on the pcp) and Net Profit After Tax increased to $9.5m (up 34% on the pcp).

Underlying EBITDA was $27.4m, 17% up on the pcp. EBITDAR per bed (on a same site basis) was was $31.1k for the year (an increase of 11% on the $27.9k reported for FY25). These results were driven by stronger occupancy and other operating metrics across the business.

Other financial metrics also demonstrated growth on the pcp. Revenue increased 14% on the prior period to $202.3m. Operating cash flow was $25.1m (up 25% on the pcp). Available Funds from Operations (AFFO) was $12.7m.