# Findings Report — Prompt 8: Radius Care Update - **Date of run:** 7 June 2026, ~18:00 NZST - **Prompt number:** 8 - **Prompt title:** Radius Care Update - **Category:** Provider Watch - **Status:** HIGH VALUE — Substantive new FY26 results and strategic developments --- ## What Was Searched 1. `site:nzx.com Radius Care NZX announcement 2026` 2. `site:radiuscare.co.nz Radius Care annual report results 2026` 3. `Radius Care "RAD" NZX results announcement 2026` (general web) 4. `Radius Care FY26 results earnings growth dividend May 2026 media release` 5. `Radius Care RAD news June 2026 OR May 2026 "Karori" OR "Belfast" OR "Luma"` 6. `Radius Care "Karori Village" acquisition Wellington May 2026` --- ## What Was Found ### 1. FY26 Results Announcement (13 May 2026) Radius Residential Care Limited (NZX: RAD) released its full-year results for the year ended 31 March 2026. **Key Financial Metrics:** | Metric | FY26 | FY25 | Change | | -------------------------------------- | ------- | -------- | ------- | | Revenue | $202.3M | $177.4M | +14% | | Profit Before Tax | $14.3M | $10.5M | +37% | | Net Profit After Tax | $9.5M | $7.0M | +34% | | Underlying EBITDA | $27.4M | $23.5M | +17% | | Available Funds from Operations (AFFO) | $12.7M | $8.8M | +44% | | EBITDAR per Care Bed | $31,100 | $27,900 | +11% | | Average Occupancy | 94.9% | 92.8% | +2.1 pp | | Operating Cashflow | $25.1M | $20.1M | +25% | | Net Bank Debt | $68.7M | $67.7M | +1.5% | | Leverage (Net Debt/EBITDA) | 2.5x | 2.9x | -0.4x | | Total Dividend (FY) | 2.2 cps | 1.45 cps | +52% | **Significance:** Revenue surpassed NZ$200M for the first time. This marks a dramatic turnaround from the FY20 loss of NZ$3.3M. The 2.5x leverage ratio now meets the medium-term target (was 2.9x in FY25). **Dividend:** - Final dividend: 1.2 cps (fully imputed) — up 50% on 0.8 cps prior final - Paid 11 June 2026, record date 28 May 2026 - Gross dividend yield: 8.0% on average share price for 2H26 **CEO Comment:** Andrew Peskett noted "exceptional team of around 2,000 people" and highlighted the Karori Village acquisition. ### 2. Karori Village Acquisition (Wellington) - **Announced:** 1 April 2026 - **Location:** Karori, Wellington (prestigious suburb) - **Facility:** 90-bed care home providing rest home, hospital, secure dementia, and respite care - **14 ORA units** (vacant retirement units) - **Net investment:** NZ$13.6M - **Settlement:** 26 May 2026 (management says immediately accretive to FY27 PBT) - **Significance:** Radius Care's **first care home in the Wellington region**; brings total to **25 care homes nationwide** (12 owned, 13 leased) ### 3. Belfast Development (Christchurch) - Land purchased March 2026 - Bulk earthworks commenced - First new-build care home using bespoke design for hospital-level and dementia care - ~80 retirement villas planned (staged 5-7 year development) - Target completion: FY28 - NZ$1.4M non-cash partial impairment of development costs booked FY26 (project scope updates) ### 4. Hokitika Development - 80-bed care home + 55 retirement village villas - Approval in principle from Westland District Council - Timeline: FY27-FY28 ### 5. Capital-Light New Build Pipeline - Up to **20 new 80-100 bed care homes** funded by private landlords - Earthworks commenced for first two developments - Bespoke designs for high-acuity care and operational efficiency - Capital-light model preserves balance sheet flexibility ### 6. Innovation — Luma Continence Products - Launching **Luma**, a range of continence products designed specifically for elderly by clinicians - Will reduce costs for care homes and accelerate Radius Shop growth - Clinician-designed — differentiates from mass-market products ### 7. Home Support Services Expansion - Growing number of clients receiving home care and rehabilitation nationwide - ACC-funded hospital-level rehabilitation services - Minimal capital required; aligns with government ageing-in-place strategy ### 8. Workforce & Culture - **Staff turnover:** 18% — "significantly better than industry peers" - **Employee Net Promoter Score (eNPS):** +20 (25% improvement since 2023) - **Internal promotions:** 50% of management promoted from within - 16 of 24 care homes hold maximum **4-year certification** ### 9. Forsyth Barr Analysis (14 May 2026) - Analyst rating: Hold (spot valuation NZ$0.52, down from NZ$0.54) - Result "slightly below expectations" on revenue and EBITDA - Earnings growth engine shifting from occupancy gains → care bed growth (development & acquisition) - Occupancy path to 97% ceiling pushed to FY29 - Strong cash flow positions well for growth funding - LTIP issued: 12.3m performance share rights with vesting at NZ$0.44/$0.66/$0.88 — management conviction signal ### 10. Market Performance - Share price: NZ$0.385 (down 3.75% from $0.40 close as of 5 June 2026) - 52-week change: +32.76% - Market cap: ~NZ$113M --- ## Source URLs (Accessed 7 June 2026) | Source | URL | | ----------------------------------- | ---------------------------------------------------------------------------------------------------------------------- | | NZX — FY26 Results Announcement | https://www.nzx.com/announcements/472508 | | NZX — FY26 Results Date Notice | https://www.nzx.com/announcements/471769 | | NZX — 1H26 Results (Nov 2025) | https://www.nzx.com/announcements/462893 | | Radius Care Investor Centre | https://radiuscare.co.nz/investor-centre/ | | Karori Acquisition Page | https://radiuscare.co.nz/radius-care-expansion-continues-with-acquisition-of-karori-village/ | | FY26 Outlook Upgrade (Jun 2025) | https://radiuscare.co.nz/radius-care-upgrades-fy26-outlook/ | | Investing.com — FY26 Article | https://www.investing.com/news/company-news/radius-care-fy26-presentation-profit-surges-37-dividend-up-50-93CH-4682991 | | Forsyth Barr Research (14 May 2026) | https://www.forsythbarr.co.nz/assets/publications/RAD-2026-05-14-FY26-Beds-Filling-Builds-Pending.pdf | | ShareChat — Karori Acquisition | http://www.sharechat.co.nz/article/6e9d0d45/rad-radius-care-expansion-continues-with-care-home-acquisition.html | --- ## KB Action Required ### Files to Update 1. **`11_Market_and_Industry_Reports/2026 Provider Market Refresh Tracker.md`** — Radius Care section needs MAJOR rewrite: - Update "latest report captured" to FY26 - Remove "Most financially pressured" / "High — existential" descriptions — FY26 results demonstrate clear turnaround - Add growth initiatives (Karori, Belfast, Hokitika, capital-light pipeline) - Update facility count to 25 care homes + post-Karori: 1,988 beds + 162 ILUs - Add innovation (Luma) and home care expansion - Add workforce metrics (18% turnover, eNPS +20) 2. **`11_Market_and_Industry_Reports/2026 Provider Comparison Matrix - Financial Operational and Care Risk.md`** — Likely needs Radius Care section updated 3. **New Source Brief** — Create a source brief in `11_Market_and_Industry_Reports/` for the FY26 report ### Files Already Created - `2026 - Radius Care - FY26 Annual Report.pdf` (downloaded from radiuscare.co.nz) - `2026 - Radius Care - FY26 Media Release.pdf` (downloaded from NZX) - `2026 - Radius Care - FY26 Investor Presentation.pdf` (downloaded from NZX) --- ## Quality Assessment **Verdict: HIGH VALUE.** This is the most significant Radius Care update since their FY25 results. The FY26 numbers demonstrate: - Financial turnaround is real and sustained (3rd consecutive year of strong growth) - Strategic pivot from pure ARC operator to broader health services provider (home care, Luma products) - Geographic expansion into Wellington (Karori) - Development pipeline (Belfast, Hokitika, up to 20 new care homes) - Workforce metrics that actually outperform industry peers The existing KB tracker description as "Most financially pressured" is now significantly outdated. --- _Findings report created by autonomous research agent — NZ Seniors Knowledge Base_