Regis Healthcare acquisition and aged care reforms update

Regis Healthcare Limited (ASX:REG) has announced the acquisition of two high-quality residential aged care homes in Melbourne's Mornington Peninsula for a net consideration of $35.5 million. The homes, based in Capel Sound and Mornington, are consistent with Regis' strategy to expand its residential aged care footprint through the acquisition of premium homes. The acquisition is expected to be EPS accretive in FY25 and will be funded from existing cash. Completion is anticipated on 2 December 2024.

Executive Commentary on Acquisition and Aged Care Reforms

Regis' CEO Dr Linda Mellors expressed excitement about adding the quality homes to their portfolio and broadening their footprint in Melbourne. She emphasized the anticipation of welcoming residents, families, employees, and communities to Regis and ensuring a seamless transition of services. Village Glen Founder and Managing Director Chas Jacobsen expressed delight in Regis becoming the new owner of the facilities and looked forward to an ongoing and productive relationship between the parties via their co-located retirement village.

Summary of Regis Healthcare Acquisition and Aged Care Reforms Update

Regis Healthcare (ASX:REG) has executed binding agreements to acquire two high-quality residential aged care homes in Melbourne's Mornington Peninsula for a net consideration of $35.5 million. The acquisition is in line with Regis' strategy to broaden its residential aged care footprint through the acquisition of premium homes and is expected to be EPS accretive in FY25. The company also provided an update on recent aged care reforms, welcoming the bipartisan agreement on historic funding reforms to make the aged care system fair, equitable, and sustainable. These changes are expected to improve returns for the aged care sector and enable providers like Regis to invest in further greenfield aged care developments. Regis is pleased with the progress of critical aged care reforms and anticipates commencing three greenfield developments in FY25, adding 323 high-quality beds to the portfolio.