Healthcare Vital Signs

£643 £5.4K Our readers have asked whether Cushman &Wakefield had broken down our care home data by location within the elderly market. We have since explored this finding the following insights. NORTHERN IRELAND We’d love to hear your thoughts on this topic. Please get in touch at NICHOLAS.WEST@CUSHWAKE.COM We initially looked at average weekly fee spreads across the United Kingdom and identified the somewhat broad range of fess that care homes charged their occupiers according to location. Tom Robinson, Partner at Cushman & Wakefield, said ‘the spread in average weekly fees highlights the way in which regional wealth impacts on profile and why so many buyers focus on the south and midlands. But underneath the regional zones, every micro location must be considered in detail as wealth pockets exist in all regions of the UK. Location remains a key factor when choosing to invest in a care home, both macro and micro’. AVERAGE WEEKLY FEE BY REGION EBITDARM PER BED BY REGION We then explored EBITDARM (Earnings Before Interest Tax Depreciation Amortisation Rent and Management) of care homes by bed. It was interesting to see that Scotland charged relatively low fees as a region, however, realised substantial profits and outperformed much of the regional competition. Nick West, Senior Analyst at Cushman & Wakefield, commented that ’this data illustrates that the relationship between fee levels and subsequent profit is influenced by an array of additional factors and that it is not a binary connection. Investors should look beyond the simple relationship when assessing an opportunity accordingly.’ 12 | CUSHMAN & WAKEFIELD