S&P/ASX 300 Index (ASX: XKO) healthcare share Regis Healthcare Ltd (ASX: REG) is marching higher today.
Shares in the residential aged care provider closed yesterday trading for $5.83. In morning trade on Friday, shares are trading for $5.97 apiece, up 2.4%.
For some context, the ASX 300 is up 0.5% at this same time.
As you can see on the chart above, the Regis Healthcare share price is now up 123.6% over the past 12 months. And that doesn't even factor in the two partly franked dividends the company paid out over the year.
Here's what's moving the ASX 300 healthcare stock today.
ASX 300 healthcare stock expands residential aged care footprint
The Regis Healthcare share price is on the rise after the company announced it has entered into binding agreements to acquire two residential aged care homes from Ti Tree Operations.
The ASX 300 healthcare share will pay a net consideration of $35.5 million to the privately-owned residential aged care provider for the new assets.
The residential aged care homes are located in Capel Sound and Mornington in Victoria. They provide a combined 262 beds under the Village Glen trading name.
According to the release, both fully accredited homes had an average occupancy of 96% in Q4 FY 2024.
Commenting on the expansion that looks to be boosting the ASX 300 healthcare share today, Regis CEO Linda Mellors said, "We are excited to add these quality homes to our portfolio and broaden our footprint in Melbourne."
Mellors continued, "We look forward to welcoming the residents, families, employees and communities to Regis and ensuring a seamless transition of services."
Village Glen managing director Chas Jacobsen added:
We are delighted that Regis will be the new owner and custodian of the Capel Sound and Mornington facilities. We look forward to an ongoing and productive relationship between the parties into the future via our co-located retirement village.
The transaction remains subject to the customary regulatory approvals and conditions.
Regis expects the acquisition to settle on 2 December this year. It will be funded by the company's existing cash.
Once the acquisition is complete, and post the September closure of its Weston home in Western Australia, the ASX 300 healthcare share's aged care portfolio will expand to 68 homes with approximately 7,660 beds.
Atop that, Regis' new 112-bed residential aged care home in Camberwell, Victoria is scheduled to open by late 2024.
Regis comments on healthcare reforms
Separately, the ASX 300 healthcare share also applauded the government's bipartisan historic funding reforms to improve Australia's aged care system.
Commenting on those reforms, Mellors said:
After many years of chronic underfunding with a significant portion of the sector operating at a loss, we are now expecting more predictable and sustainable funding to invest in high-quality services and aged care homes that Australians expect…
As a result, Regis will now commence three greenfield developments in FY 2025, which will add 323 high quality beds to the portfolio.
