Colliers CRE report
Colliers CRE’s Autumn Review of Care Homes Review makes the following key points:
Average weekly fees: The average fee charged per week by operators has risen in both types of home over the past six months, up 12% to �706 per week for nursing homes and a smaller increase of 4% to �492 per week for residential homes.
Occupancy Rates: After plateauing in 2008, rates fell in the first half of 2009 for both nursing and residential homes, with the proportion of occupied beds falling below 90% for the first time in nursing homes, and residential homes experiencing their lowest proportion of residents in seven years, at 90%.
EBITDAR Earnings Before Interest, Tax, Depreciation, Amortisation and Rent: The size of the average profit margin in both nursing and residential homes shrank during the first half of the year as a result of cost pressures and a decline in occupancy rates. Nursing homes averaged 29%, while residential homes fared slightly better at 30%.