Regis to Add 600 Beds, Boost FY26 EBITDA by $7-8M in Rockpool Deal
Regis Healthcare has agreed to acquire four premium aged care homes in South-East Queensland from Rockpool, adding 600 beds and boosting its portfolio to 72 homes. The $135 million deal is expected to be earnings accretive in FY26.
- Acquisition of four premium aged care homes with 600 beds in South-East Queensland
- Total net cash outlay approximately $135 million plus assumed RAD liability of $204 million
- Homes are new, opened between 2019 and 2025, with high occupancy except for ramping Oxley facility
- Deal increases Regis’ portfolio to 72 homes and ~8,200 beds, all freehold
- Expected FY26 earnings accretive with forecast EBITDA of $7-8 million
Strategic Expansion in a Growing Market
Regis Healthcare has taken a significant step to expand its presence in the residential aged care sector by signing a binding agreement to acquire Rockpool RAC Holdings Pty Ltd. This acquisition brings four premium residential aged care homes located in South-East Queensland under Regis’ umbrella, adding 600 beds to its portfolio. The homes, situated in Brisbane and the Sunshine Coast, are all relatively new, having opened between 2019 and 2025, with the latest facility at Oxley still in its ramp-up phase.
The deal, expected to complete by 1 September 2025, involves a net cash outlay of approximately $135 million. Additionally, Regis will assume a Refundable Accommodation Deposit (RAD) liability of around $204 million, with future net RAD cash inflows estimated at $40 million as the Oxley facility reaches full occupancy. This acquisition will increase Regis’ total portfolio to 72 homes, comprising roughly 8,200 beds, all held on a freehold basis.
Premium Assets with Strong Occupancy
The acquired homes boast high occupancy rates, with three of the four facilities operating above 95% occupancy. Morayfield, Carseldine, and Pelican Waters homes demonstrate mature occupancy levels of 97%, 99%, and 100% respectively. The Oxley home, which opened in March 2025, is currently ramping up with occupancy at 53%. All homes feature 100% single ensuite rooms, aligning with modern standards for resident comfort and privacy.
This portfolio’s quality and location in high-demand areas underpin the acquisition’s attractiveness. The homes’ recent construction dates ensure modern facilities and compliance with current regulations, which is reflected in the portfolio’s strong accreditation history and an average star rating of 4 in Q2 FY25.
Financial and Operational Benefits
From a financial perspective, the acquisition is expected to be earnings accretive in the fiscal year 2026. Regis forecasts underlying EBITDA of $7-8 million for FY26, with a pro-forma annualised EBITDA of $13-14 million once the Oxley facility fully ramps up. The deal also offers cost synergies through procurement savings and reduced corporate overheads, enhancing operational efficiency.
Funded through Regis’ existing net cash reserves, the transaction reflects a strategic use of capital to strengthen the company’s market position. The freehold ownership of all facilities provides long-term asset security and potential for value appreciation.
Looking Ahead
As Regis integrates these new homes, attention will focus on the ramp-up progress at Oxley and the realisation of anticipated synergies. The acquisition not only expands Regis’ footprint in a key growth region but also signals confidence in the ongoing demand for premium aged care services in Queensland.
Investors will be watching closely how this deal translates into earnings growth and whether it sets the stage for further acquisitions in the sector.
Bottom Line?
Regis’ Rockpool acquisition strengthens its Queensland presence and earnings outlook, but Oxley’s ramp-up will be key to watch.
Questions in the middle?
- How quickly will the Oxley facility reach mature occupancy levels?
- What integration challenges might Regis face with the new homes?
- Could this acquisition signal more aggressive expansion plans in other regions?
