MARKET SUMMARY REPORT AUSTRALIA AGED CARE SECTOR (CONT’D) There are currently 698 providers delivering residential aged care in Australia, a 4.3% decrease in providers in the market since FY21. New requirements in relation to staffing are set to come into effect in 2023, starting with having a registered nurse onsite 24 hours per day from July 2023, and then needing to achieve minimum ‘care minutes’ targets by October 2023. These measures could be considered contributing factors towards the closure of some homes, including recent announcements from Brightwater in Western Australia and Wesley Mission in New South Wales that they will each close three of their homes. There’s a declining trend in demand for residential aged care, resulting in a 5.6% drop in occupancy levels over the past five years. However, the market is still growing in terms of operational places per provider. Meanwhile, as at June 2022, there were 180,750 permanent residents accessing residential aged care, a decrease of 1.7% since June 2021. Despite the drop in occupancy levels and overall demand for residential aged care, the Australian aged care market has continued to grow in terms of the total number of operational places. Chart below shows historical growth in the number of ‘operational places’ across the country. This growth is equivalent to a CAGR of 1.5% over the timeframe. (Extracted from KPMG Aged Care Market Analysis 2023) 0.4 percent compound annual growth in the number of occupied residential aged care places is low relative to the growth in the 85 years and over population over the same timeframe, which was 2.5 percent. This indicates a trend away from residential aged care to an extent. Residential Aged Care: TOTAL AND OCCUPIED RESIDENTIAL AGED CARE PLACES Number of people in care Unoccupied places 30,355 28,076 27,191 24,624 20,545 186,597 2018 2022 2021 2020 2019 188,773 189,610 191,029 189,954 23 BUSINESS OVERVIEW 1 3 4 5 6 AL-`AQAR HEALTHCARE REIT ANNUAL REPORT 2023
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