Estia post new 80 place acquisition will have a 3,693 place portfolio of which 90.7% are single rooms (3,351 approx) with at least 33% (1,220) places deemed extra service status*.
At IPO Regis had a 5,409 place portfolio (of which 4,719 only are operational) of which 72% are single rooms (3,894 or operational 3,397 approx) and 27% (1474) places deemed extra service status*.
At IPO Japara had a 3,131 place portfolio of which 22% are single rooms (692 approx counted) and 10.9 % (342 approx) places deemed extra service status*.
Number of rooms relevant to revenue but so too is single verses double status, quality and extra services capacity. This is one reason why the Kingston article was negative or plainly incorrect.
On these metrics alone in percentage terms Estia beats REG and JAP. No point in operating in the lower EBITDA quantiles. Plus big firepower on acquisitions.
The fundies are likely to be in after the dust settles early to mid 2015.
*higher standard of accommodation, food and services (e.g. entertainment) and does not depend upon the level of care and therefore charges are higher.
EHE Price at posting:
$4.61 Sentiment: Hold Disclosure: Held
