Please if you're going to quote really old posts please mention the date, (which was October 2014) LONG before the company listed. The balance sheet was a mess, in fact OCA was a new listing in 2017 that was a VERY VERY long time in the making. The company with its new directors realized they HAD to present a clean and restructured balance sheet and used the IPO proceeds to effect that. To the best of my knowledge this was the only share listing, (there were debt issues last year) in 2017.
Some of the board have a good track record and they'll be the ones approving decisions about gearing level's.
I'm not a big fan of IPO's but this one was listed cheap and the forward PE was and remains well below the sector average. 8.43 cps underlying from memory is the official forecast for FY18 so the forward underlying PE at 12.0 is the cheapest of the sector by quite some margin. I think you'll also find even at $1.02 the company is trading quite close to its NTA if all properties were revalued as at 31 December 2017. I hear whispers that their care standards are second to none, even not second to Ryman ! Further, they've made on or two good looking acquisitions since listing but this is very much still a case of, lets see how they go.
There's an element of risk here for sure, no question whatsoever as they're a relatively new listing but the real estate market has been sound this last year, they are converting a LOT of care rooms into the ORA model and as mentioned they have a superb reputation with their care services. The market per se is pretty stretched and its very hard to find value. The value of this share at present has to be measured in that context. I started buying just after the IPO in the low 80 cent range, (as a way of eliminating IPO price risk). To be perfectly honest there is an element of this being a bit of a punt, nobody really knows how they're going to go as compared to forecast but in my view given market dynamics since they listed there's probably just as much chance of beating FY18's forecast as missing it. Beating the FY17 forecast doesn't count for much given the very close proximity of the listing date to the FY17 report date but a beat is a beat nonetheless so must count for a little bit. My base case assumption for 2017 at the start of the year was for nil increase in house prices for Auckland, (about right) and 3% throughout the rest of the country, was about 6.5% if I remember correctly the article containing REINZ data the other day. This augers well for FY18's results.
T.J. if you're going to pour scorn on others posts at least have respect to get your timeframe and facts correct. I looked at their 2014 balance sheet as represented on the companies office website and it was an absolute mess in 2014.