Will aged care stocks fall 10% tomorrow?, page-9

I can't get my head around the cash flow side of this company - they payout 100% of earnings but they are growing sites and rooms so my gut feel is they are using residents capital to fund dividends. I kind of like the sector as I think we need nice places for the elderly (who can afford it) to reside and it has to be a growth market. Yield is great ie too good - just has a house of cards feel to it. I'd much prefer to see a 60% payout ratio - lower yield. Also I'm worried about cost cutting "efficiencies" having a detrimental effect on resident amenity and care? We do need these companies to be profitable and succeed though.