Hi all I've been doing a fair amount of research on this stock,...

Hi all

I've been doing a fair amount of research on this stock, as well as a few other aged care providers over the last few days. Typically I've only invested in banking, mining and real estate stocks, so delving into aged care is broadening my horizons. Therefore, as part of my learning, I have a few questions I'd like to ask the fine people commenting here, as well as a summary of what I've gathered so far but I'm not 100% certain I'm correct, and would like confirmation.

1. RAD payments - RAD payments is a full or partial deposit, made by the client upon checking in to a room (similar to a rental bond) which is 100% refunded when the client is no longer staying in the room. The latest balance sheet shows $850m worth of RAD deposits are currently held by Regis, my question is, does Regis hold this money? Or do they use it for investing purposes, ie building new beds? I can't find a mention of this on any reports.

If Regis does invest the money, the possibility is there that large numbers of clients will move out at once, the money is to be refunded and they just don't have it, is this risk mitigated by the high occupancy rates of the beds, and the likelihood that the next customer will deposit an equal amount (based on the history of the past patients over the 22 years of Regis)

2. DAP payments - if a client isn't able or willing to make a deposit, they can elect to make a daily payment. (DAP) this payment money is based on an interest rate of the remaining deposit, divided by 365. This money is not refundable?

3. Income - Regis income primarily from the non refundable DAP, and fees for other health care services (some of which are government funded, and some of these fees are now subject to stricter regulation, as mentioned in this thread)



I hope this makes sence to people at there, and thanks in advance to alone who offers an opinion.