RAD - Radius Healthcare

[winner69]

Pro forma underlying EBITDA $21.3m $23.0m $23.7m
Pre NZ IFRS 16 pro forma underlying EBITDA $8.2m $10.2m $11.0m
Implied EV (including lease liabilities) / pro forma
underlying EBITDA 16.5x 15.2x 14.7x
Implied EV / Pre NZ IFRS 16 pro forma underlying EBITDA 20.3x 16.3x 15.1x
AFFO per Share – cents 1.78 1.67 1.99
Dividend per Share – cents at 50% of AFFO for FY2021 0.83 1.00
*Implied dividend yield – cash dividend declared 1.04% 1.25%
*Implied dividend yield – gross dividend declared 1.44% 1.73%

First question is what is AFFO - I really don't have the time today to get into this but the metrics do not appear compelling at first glance.

What I have learned over many years of investing in this sector is there is very little money in providing care services...the money is in the property development and especially the property churn.

Beagle ..AFFO

From other document -

AFFO, which is a cash proxy used by Radius Care to determine the level of dividend it can support.

And is defined as -

available funds from operations, which is calculated from Pre-NZ IFRS 16 Pro forma Underlying NPAT by removing pre-NZ IFRS 16 depreciation and amortisation and instead including maintenance capital expenditure