Care Homes - Profitability by Property Age
Is there a link between Profitability by Property Age?
1 minute to read
The short answer is yes, of course there is.
When comparing profitability of stock built prior to 2000 with stock built post 2010, there is a 104% uplift in EBITDARM per resident and EBITDARM percentage of income shifts from 18.0% to 32.3%.
At regional level, the largest difference identified between old and new stock in regards to EBITDARM per resident is in London, with homes built prior to 2000 achieving £7,828 in comparison to £26,484 for homes built post 2010.
It is clear that new build properties take into account staff efficient layouts, facilities fit for the 21st century care and subsequently attract self-funder service users, paying premium rates for the premium product and therefore positively influencing performance.
Further information on this subject can be made available on request.