Extendicare (EXE) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue rose 2.1% to CAD 374.7 million, with net earnings up 14.8% to CAD 15.0 million and all business segments contributing positively.

• Adjusted EBITDA increased 18.2% to CAD 35.6 million; excluding out-of-period items, up 42.7% to CAD 29 million.

• AFFO per share rose to CAD 0.235, up from CAD 0.21 year-over-year; payout ratio at 51%.

• Declared a 5% increase to the monthly dividend, reflecting confidence in sustainable growth.

• Completed sale of three LTC redevelopment projects and announced acquisitions of Closing the Gap Healthcare and nine LTC homes from Revera.

Financial highlights

• Revenue increased 2.1% to CAD 374.7 million; net operating income up 12.3% to CAD 50.2 million.

• Adjusted NOI margin improved: LTC up 150 bps to 9.4%, home health care up 200 bps to 10.3%, managed services up 270 bps to 53.4%.

• Q1 AFFO per share was CAD 0.235, up from CAD 0.21; adjusted AFFO per share improved by CAD 0.061.

• Cash on hand at quarter end was CAD 110 million, with access to an additional CAD 108 million in credit.

• Maintenance capex was CAD 2.7 million (0.7% of revenue); long-term debt at CAD 286.9 million.

Outlook and guidance

• Closing the Gap acquisition expected to close in Q3 2025, adding CAD 84.2 million in revenue and CAD 0.06 AFFO/share; Revera nine-home acquisition expected in Q2 2025.

• Earnout from Closing the Gap tied to new business revenue could add CAD 7.0–11.0 million incremental revenue.

• Expects continued organic and acquisition-driven growth, with focus on expanding home healthcare and LTC capacity.

• Margin expansion in home care expected through operating leverage and technology investments.

• AFFO effective tax rate expected in the 22–25% range for 2025.