Fund Manager Summary
The fund managers believe that the outlook for Regis Healthcare Ltd presents significant opportunities for growth, particularly as the aged care sector is poised for recovery. In their opinion, bipartisan support for the Aged Care Act will lead to increased funding, enhancing industry operating margins. They note that Regis is well-capitalised to leverage attractive greenfield investment opportunities and benefit from sector consolidation. Furthermore, its premium service offering enables Regis to command higher rates, which is expected to further strengthen its growth potential. Overall, the fund managers view Regis as a resilient player in a challenging market, making it an appealing investment prospect.
Source: Trading View
Commentary From The Managers
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Wilson Asset Management
31 Oct 2025
$7.41
Summary
- Regis Healthcare is one of Australia’s largest residential aged care providers.
- The company operates a national network of facilities with a growing pipeline of developments.
- In October, the share price benefited from expansionary M&A activity.
- On 23 October, Regis Healthcare agreed to acquire two high-quality residential aged care facilities for approximately $45 million.
- The acquisition is funded from existing net cash and has a gross price per bed well below replacement value.
- The acquisitions increase capacity by 230 beds, supporting occupancy and margin outcomes.
- This move strengthens the company’s footprint in Victoria.
- Wilson Asset Management believes Regis Healthcare is a discerning capital allocator regarding its acquisition activity.
- The company is poised to benefit from funding tailwinds and the increasing demand for aged care services.
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Commentary From The Managers
Wilson Asset Management
31 Oct 2025
$7.41
- Regis Healthcare is one of Australia’s largest residential aged care providers.
- The company operates a national network of facilities with a growing pipeline of developments.
- In October, the share price benefited from expansionary M&A activity.
- On 23 October, Regis Healthcare agreed to acquire two high-quality residential aged care facilities for approximately $45 million.
- The acquisition is funded from existing net cash and has a gross price per bed well below replacement value.
- The acquisitions increase capacity by 230 beds, supporting occupancy and margin outcomes.
- This move strengthens the company’s footprint in Victoria.
- Wilson Asset Management believes Regis Healthcare is a discerning capital allocator regarding its acquisition activity.
- The company is poised to benefit from funding tailwinds and the increasing demand for aged care services.
Summary
Milford Asset Management
31 Oct 2025
$7.41
- Regis Healthcare rebounded 23.1% following a sharp decline due to unexpected government funding decisions.
- The aged care sector is strategically vital due to ageing demographics and extensive waiting lists.
- There is widespread unprofitability among providers, highlighting the need for well-run operators.
- Milford Asset Management continues to hold its position, seeing value in operators well-positioned to benefit from aligning policy and demographics.
Summary
Prime Value Asset Management
31 Oct 2025
$7.41
- Prime Value Asset Management has been invested in Regis Healthcare for over 5 years, experiencing significant appreciation in share price.
- Recently, the fund manager actively sold down investments during the September quarter due to the share price appreciating significantly ahead of fundamentals.
- After the sell down, Regis’s share price retracted substantially, allowing Prime Value Asset Management to rebuild their position in the company.
- Regis is one of Australia’s largest residential aged care providers.
- The company is expected to benefit from government funding and the increasing demand for aged care services.
Summary
Paradice Investment Management
30 Sept 2025
$6.02
- Regis Healthcare’s share price fell during the quarter due to the Federal Government’s aged-care funding indexation increasing by only 2.6% for REG from October 2025, which was below market expectations.
- Despite the share price decline, occupancy trends remain positive and operational metrics continue to improve.
- The moderation in funding growth has led to a de-rating of the stock.
- Paradice Investment Management continues to view REG as well positioned within a structurally undersupplied industry.
- Ageing demographics and strong demand fundamentals provide a supportive backdrop for REG.
Summary
Cooper Investors
30 Sept 2025
$6.02
- Cooper Investors notes that Regis Healthcare (REG) was a significant detractor from performance this quarter.
- The Government has reversed some improved funding outcomes for the sector under the new Aged Care Act.
- REG will receive a 2.6% increase in funding under the AN-ACC model, which is below the expected cost increases of 4-5%.
- This funding shortfall impacts REG's earnings recovery and profitability outlook for FY26.
- Despite acquisitions, profitability in REG's base business is projected to decline in FY26.
- The funding changes favor lower acuity residents, potentially increasing pressure on public hospitals.
- REG is reviewing all greenfield/capital investment projects, raising concerns about a potential capital strike.
- Cooper Investors remains confident that the new Aged Care Act will support medium-term profitability for operators.
- If funding outcomes do not materialize, opportunities may arise from increased bed prices and acquisitions of financially stressed operators.
Summary
Ellerston Capital
30 Sept 2025
$6.02
- Ellerston Capital identifies Regis Healthcare (REG AU) as the portfolio's largest detractor for the month.
- The company operates 73 strategically positioned aged care homes across Australia.
- Recent Government pricing review resulted in a per-day care rate increase that was less than the underlying cost inflation, leading to margin compression across the sector.
- This decision reversed the trend of cost and price alignment, causing REG's share price to retrace 23% during the month.
- Despite this setback, Ellerston Capital remains constructive on the medium-term outlook for the company and the broader sector.
- The Department of Health forecasts a need for approximately 9,000 new aged care beds per year for the next 20 years to meet demographic demand.
- Currently, only 1,500 beds are being built annually, indicating a significant shortfall.
- Without improved sector profitability, new investment is unlikely to meet this growing need, a dynamic Ellerston Capital expects the Government will need to address through policy reform.
- Upcoming Accommodation Supplement review is due by June 2026, which may influence future sector dynamics.
Summary
Milford Asset Management
30 Sept 2025
$6.02
- Milford Asset Management notes an earnings downgrade of 22.3% for aged care provider Regis Healthcare.
- The Federal Government surprised the market with lower-than-expected funding outcomes.
- There are extensive waiting lists and aging demographics affecting the sector.
- Sector-wide unprofitability highlights the need for continued aged care support.
- Milford Asset Management continues to hold its position in Regis Healthcare due to these ongoing challenges.
Summary
Firetrail Investments
30 Sept 2025
$6.02
- Firetrail Investments notes a significant decline in Regis Healthcare's stock in September following strong performance over the past year.
- The drop was triggered by a government announcement on September 12 regarding changes to aged care funding.
- While the headline indicated a 4.7% increase in funding, Regis Healthcare expects only a 2.6% increase for its operations.
- The government clarified that funding for resident care will not keep pace with costs, leading to margin compression across the sector.
- This development is viewed as perplexing due to recent positive trends in government and sector consultations.
- Approximately 30% of the aged care sector is currently unprofitable.
- Returns on capital do not support new capacity investments, raising concerns about future growth.
- Despite high occupancy rates, there is a need for around 7,000 extra aged care beds annually over the next decade.
- Current supply is limited to approximately 1,500-2,000 beds per year.
- Firetrail Investments continues to hold its position in Regis Healthcare, reflecting on these complexities in the aged care landscape.
Summary
Pendal Group
30 Sept 2025
$6.02
- Pendal Group provides an update on its investment thesis regarding Regis Healthcare.
- Regis Healthcare is an aged care provider offering residential aged care, home care, retirement living, and day centres.
- For FY25, Regis Healthcare reported a 15% revenue growth and improved occupancy levels at 95.7%.
- However, guidance for FY26 was disappointing due to insufficient government funding increases to cover rising staff costs.
- Management also indicated delays in development plans.
- Despite challenges, the growth outlook remains supported by an aging population and constrained supply.
- Pendal Group continues to hold its position in Regis Healthcare based on these factors.
Summary
Pendal Group
31 Aug 2025
$7.78
- Pendal Group provides an update on its investment thesis regarding Regis Healthcare.
- Regis Healthcare operates in aged care, offering services such as residential aged care, home care, retirement living, and day centres.
- For FY25, results were largely in line with expectations, with revenue growth of 15% and occupancy levels reaching 95.7%.
- The company has successfully maintained cost control despite facing a labour shortage.
- Growth prospects are supported by an aging population and constrained supply in the aged care sector.
- There have been some modest consensus earnings downgrades reflecting the costs associated with expanding capacity.
- Pendal Group continues to hold its position in Regis Healthcare due to these factors.
Summary
Cooper Investors
30 June 2025
$7.84
- Regis Healthcare has been a strong contributor to fund performance for the second consecutive year.
- The company is one of the largest aged care providers in Australia, operating nearly 7,600 aged care beds across 68 freehold facilities in affluent areas.
- Cooper Investors emphasizes the importance of calibration to the company and industry through a long observation period.
- Key trends observed include improvements in occupancy, free cash flow, and earnings.
- Value Latency is crucial, defined as options for the company to create value, both internally and externally.
- Recent legislative changes, including the new Aged Care Act, have restored industry profitability, incentivizing new bed supply.
- These changes have increased earnings certainty for aged care operators, benefiting from the pricing authority IHACPA introduced in July 2023.
- Despite a sharp rise in share price post-announcement, Cooper Investors believes the value from regulatory changes remains underappreciated.
- Cooper Investors continues to hold a significant position in Regis as Value Latency and business trends reinforce each other.
- This approach highlights the benefits of a process-driven strategy over heuristic methods.
Summary
Tribeca Investment Partners
26 June 2025
$7.61
- Tribeca Investment Partners remains bullish on Regis Healthcare Ltd despite a 90% share price increase over the past year.
- Shares have risen from under $1 in October 2020 to just below $8 currently.
- The ageing population presents significant growth potential for aged care providers.
- Regis is well-positioned for managing and funding its growth.
- Strong occupancy and profitability metrics are evident.
- Regis meets the standards expected by the government and community.
- There is a promising pipeline of greenfield development opportunities for future expansion.
Summary
Ellerston Capital
31 May 2025
$8.09
- Ellerston Capital notes that Regis Healthcare (REG) provided a positive 3Q trading update and conference presentation.
- The business is performing as expected, with management highlighting strong industry dynamics in Aged Care.
- The Australian sector has averaged 1500 beds built annually over the last four years, significantly below the government's forecast of 10,000 beds needed each year for the next 20 years.
- This discrepancy is expected to support strong occupancy rates in the future.
- To incentivize new builds, the government will need to improve profitability and returns in this tightly regulated sector.
- As a result, REG's existing portfolio profitability is anticipated to improve.
- Additionally, REG has opportunities to increase growth through its strong net cash balance sheet, focusing on acquisitions and greenfield developments.
Summary
Milford Asset Management
31 May 2025
$8.09
- Regis Healthcare has shown strong performance, increasing by 19.7% over the month.
- The aged care sector is experiencing challenges, but bipartisan support for the Aged Care Act is expected to enhance funding.
- This funding is likely to improve industry operating margins.
- Regis Healthcare is well-capitalised to seize attractive greenfield investment opportunities.
- The company is positioned to benefit from sector consolidation.
- In a competitive market, Regis's premium offering allows it to command higher rates, boosting its growth potential.
Summary
Cooper Investors
31 Mar 2025
$6.76
- Cooper Investors continues to hold Regis Healthcare (REG) as a core portfolio investment.
- REG delivered a positive performance during the March quarter, with a strong 1H25 result.
- Improving occupancy was noted compared to the prior period, with expectations for further growth in 2H of FY25.
- Strong operating cash flow driven by price rises, increasing occupancy, and robust refundable accommodation deposits (RAD) inflows.
- REG maintains a net cash position, providing flexibility for strategic acquisitions and greenfield developments.
- Favorable operating trends supported by an aging demographic profile in Australia and essential aged care services.
- Recent clarity in Government funding enhances the outlook for REG.
- REG benefits from a strong market position, financial stability (net cash), and a proven track record in value creation through acquisitions and developments.
Summary
Ellerston Capital
31 Mar 2025
$6.76
- Ellerston Capital notes that Regis Healthcare (REG AU) has shown resilience, finishing slightly up in a challenging equity market.
- The recent performance is attributed to strong occupancy rates, currently at 96%, exceeding market expectations.
- Nursing care minutes are on track to meet the 222-minute target, outperforming industry standards.
- There has been strong RAD inflows, supported by the ramp-up of Camberwell and increases in the maximum allowable RAD room price from $550k to $750k.
- This gradual RAD repricing and retention is expected to drive earnings growth in the coming years.
- Ellerston Capital believes the company will continue to expand through brownfield, greenfield, and M&A activities.
- Regis Healthcare's expansion is supported by a pristine balance sheet, an attractive funding environment, and favorable supply/demand dynamics.
Summary
Milford Asset Management
28 Feb 2025
$6.60
- Regis Healthcare performed resiliently over the month with a +0.9% increase.
- Sector challenges stem from limited support in recent years.
- Bipartisan backing for the Aged Care Act is anticipated to improve funding and operating margins in the industry.
- Regis is well-capitalised to seize attractive greenfield investment opportunities.
- The company is also positioned for potential sector consolidation.
- In a tight market, Regis' premium offering allows for higher rate command, enhancing growth potential.
Summary
Milford Asset Management
11 Feb 2025
$6.57
- Milford Asset Management recognizes the critical role of the Australian aged care sector amidst challenges such as underinvestment and rising operational costs.
- Regis Healthcare, the sole ASX-listed operator, boasts over 30 years of experience and a portfolio of approximately 7,500 beds.
- The sector has faced a significant supply-demand imbalance, exacerbated by a decade-low in building approvals and closures of existing homes.
- Demographic trends indicate a growing demand for aged care services, with the number of Australians aged 80+ expected to rise significantly.
- In late 2024, the introduction of the Aged Care Act marked a pivotal moment, increasing funding and allowing operators to improve infrastructure.
- There are early signs of recovery within the sector, including new supply and increased interest in mergers and acquisitions.
- Regis Healthcare is positioned to capitalize on opportunities for new developments and expansions, supported by a net cash position.
- The aged care sector is entering a phase of consolidation, benefiting larger operators like Regis who have a profitability advantage.
- Milford Asset Management continues to hold its investment in Regis Healthcare, recognizing the strong fundamentals and future potential of the sector.
Summary
Firetrail Investments
31 Dec 2024
$6.00
- Firetrail Investments notes that aged care operator Regis Healthcare delivered a 90% return over the past 12 months.
- The funding environment for aged care operators has materially improved over the past 2 years, enhancing sector profitability.
- In September 2024, the Aged Care Taskforce Recommendations received bi-partisan support from the Federal Government.
- Key recommendations include increased resident funding for accommodation and daily services.
- The most impactful reform is the 2% annual retention of the Residential Accommodation Deposit (RAD), effective from 1 July 2025.
- The average RAD for incoming residents of Regis Healthcare is $517,000.
- Given no incremental costs associated with the annual retention payments, Firetrail Investments estimates a 30% uplift to Regis’s EBITDA over the next 2.5 years from the RAD retention reform alone.
Summary
Paradice Investment Management
30 Sept 2024
$6.19
- Paradice Investment Management maintains an overweight position in Regis Healthcare Ltd. (REG).
- The REG share price was positively influenced by an above consensus FY24 result.
- The Australian Federal Government's response to the Aged Care Taskforce aims for long-term sustainability and increased sector investment.
- Key reforms expected to benefit REG include:
- Retention of Refundable Accommodation Deposit (RAD) at 2% per annum.
- Increase in maximum room price to $750k (up from $550k since FY14).
- Higher everyday living funding.
- Biannual Daily Accommodation Payment (DAP) indexation.
- These reforms are anticipated to be phased in from July 2025.
- Estimated potential for a 30-40% increase in incremental EBITDA by FY28E.
- Paradice sees these regulatory changes as structural, providing REG with a strong tailwind for positive operating momentum.
- The company’s conservative balance sheet supports significant M&A optionality.
Summary
Wilson Asset Management
30 Sept 2024
$6.19
- Regis Healthcare, a residential aged care specialist and retirement village provider, had a positive month following government updates on aged care funding.
- The government announced increased funding for aged care operators, encouraging the development of more beds and providing greater subsidies per patient.
- Plans are in place to review the sector's accommodation supplement and pricing, which have not kept pace with median house price growth.
- Regis Healthcare announced the acquisition of two high-quality residential aged care facilities, aligning with its strategy to expand its presence in premium homes.
- Wilson Asset Management continues to hold the view that Regis Healthcare is the best-placed pure-play listed aged care provider in Australia.
- The company is expected to benefit from an ageing population, additional government funding, and strategic growth initiatives.
Summary
Cooper Investors
30 Sept 2024
$6.19
- Cooper Investors added to their Regis Healthcare (REG) position during the quarter.
- Government responded to the Aged Care Taskforce recommendations with legislation to improve funding in the sector.
- With the government funding overhang rectified, Regis is well positioned to deliver solid returns over the medium term.
- Investment thesis is underpinned by:
- Essential societal service of aged care supporting the multi-decade aging demographic profile in Australia.
- Industry funding clarity following a royal commission in 2018 and a final report in 2023.
- Supportive industry dynamics as the number of people over 80 years of age is expected to triple to more than 3.5 million over the next 40 years.
- Regis’ leading market position with approximately 3.5% market share.
- Balance sheet capacity allows Regis to capitalize on this favorable backdrop.
- Value latency and positive investment view remains unchanged.
Summary
Blackwattle Investment Partners
30 Sept 2024
$6.19
- Regis Healthcare rose 21% in September after the announcement of the new Aged Care Bill 2024.
- The Bill has bipartisan support from the Coalition, indicating robust political backing for aged care reforms.
- The challenge of aging population care has long been recognized, yet previous administrations have delayed action.
- As baby boomers enter care, the consequences of inadequate investment are now critical.
- The new Aged Care Bill increases funding for aged care operators to encourage the development of more care beds.
- With funding security established, a ramp-up in consolidation within the sector is anticipated.
- The sector remains highly fragmented, offering opportunities for corporate operators to consolidate.
- Aged care operators are expected to experience a golden era over the next decade.
- Blackwattle Investment Partners continues to hold its position in Regis Healthcare due to these positive developments.
Summary
Blackwattle Investment Partners
31 Aug 2024
$5.20
- Regis Healthcare rose 22% in August following the release of solid but expected results.
- The share price increase is primarily driven by a significant change in the outlook for aged care operators.
- Challenges related to caring for an aging population have been recognized, but insufficient government action has delayed necessary investments.
- As the first baby boomers enter care, the repercussions of inadequate investment are becoming evident.
- The current government faces pressure to increase funding for aged care operators to support the development of more care facilities.
- Blackwattle Investment Partners believes that the coming decade could represent a golden era for aged care operators.
Summary
Cooper Investors
30 June 2024
$4.22
- Regis Healthcare was a key addition to the Fund during the period.
- Regis is one of Australia’s largest and most respected operators in the aged care industry.
- The company operates approximately 7,600 operational places across 68 aged care homes, all 100% freehold.
- Management is majority owned by Founders Brian Dorman and Ian Roberts, with a focus on care and operational objectives.
- Led by Managing Director Dr. Linda Mellors, who has a 20-year career in health and aged care.
- Cooper Investors has observed significant evolution in the aged care sector.
- Investment thesis is supported by the essential service of aged care for Australia’s aging demographic.
- Industry funding clarity has improved following the royal commission in 2018 and a final report in 2023.
- Supportive industry dynamics with the population over 80 expected to triple in the next 40 years.
- Regis holds a leading market position with approximately 3.5% market share and a strong balance sheet.
- Current aged care backdrop has created significant value latency due to supply/demand imbalance.
- 69% of the industry was lossmaking in FY22, highlighting the need for sustainable funding.
- The Royal Commission highlighted service quality and workforce issues, prompting government action.
- Government has enacted changes towards sustainable funding structures for aged care.
- Growing population of Baby Boomers entering aged care increases demand.
- Current values are underpinned by existing business conditions and near-term demand drivers.
- Further value latency exists due to Aged Care Taskforce Recommendations and potential expansions.
- Value accretion could add $3 or more to the current price.
Summary
Spheria Asset Management
30 Sept 2023
$2.68
- Regis Healthcare (REG.ASX) share price rose over 9% in September, outperforming the market.
- The company announced financial year results showing improved averaged occupancy from ~89% to 91.5%.
- Occupancy improvement is supported by a rebound in demand and a constrained supply environment.
- Spheria Asset Management expects this backdrop to continue in the short to medium term, supporting occupancy and earnings for REG.
- The aged care sector is being bolstered by additional government funding following a recent industry review.
- The review highlighted a lack of profitability for aged care centers and inadequate care for residents.
- A new funding model aims to recoup cost inflation, increasing predictability for industry participants.
- With improved occupancy, the funding model is expected to drive better profitability for the industry.
- This is potentially more favorable for REG due to its high-quality portfolio in better socio-economic areas.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"In a landscape where aged care is evolving, it seems Regis Healthcare is poised to capitalize on emerging opportunities, supported by bipartisan reforms and a premium market position. With strategic investments on the horizon, the potential for growth appears robust."
Last Updated: 31 Oct 2025
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Frequently Asked Questions
Who is investing in Regis Healthcare Ltd (ASX:REG)?
Fund managers including Milford Asset Management, Spheria Asset Management, Blackwattle Investment Partners, Cooper Investors, Tribeca Investment Partners, Firetrail Investments , Wilson Asset Management, Ellerston Capital, Paradice Investment Management, Pendal Group and Prime Value Asset Management have invested in Regis Healthcare Ltd (ASX:REG).
Why do fund managers invest in Regis Healthcare Ltd?
Fund managers invest in Regis Healthcare Ltd due to its resilience in the aged care sector, supported by bipartisan funding from the Aged Care Act. The company is well-capitalized for greenfield investments and sector consolidation, while its premium service offering allows for higher pricing, enhancing growth potential.
What happened to Regis Healthcare Ltd (ASX:REG)?
Fund managers are investing in Regis Healthcare Ltd due to its strong revenue growth, increasing occupancy rates, and strategic positioning in a structurally undersupplied aged care market. Despite recent challenges from lower-than-expected government funding and margin pressures, the aging population and significant demand for aged care services underpin a positive medium-term outlook. The company's recent acquisitions further enhance its capacity and market presence, making it a compelling investment in a sector facing critical supply shortages.