Umm but they resell every 2 yrs on average.
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The conversion of their carebeds to care suits provides a 1 off big cost but is regained byrevenue certainly repeated in future years.
Seriously Bull....? I hope no one on this thread associates the frequency of your posts with the idea you actually know what you`re talking about.
Most of which are already consented. SUM companies have multi year unresolved Boulcott consenting fiasco's, not OCA :)
A client of mine had an 8 figure property deal fall over last week because the buyer couldn't get the consenting they needed to make the development commercially feasible...a salient reminder to me of the value of existing resource consents, not that I needed it !
i must be smoking to much , i thought when you had an existing stock of beds and you convert them to a care suite. there is a cost for conversion but when they sell them they get 10% upfront and a gain from the sale over the cost on the books before of the care bed.followed by 10% each yr for a total of 3 yrs. the point i was making they donot have a delay for new builds consented as its existing stock so they making 10% revenue gains very quickly etc which can only be replicated in revenue in the future if they get enough brownfields up and running which is highly dependant on consenting and land
just to clarify its a fast way to make the books look good
I went fishing today and looked at the price when I got back. My mouth is drooling, but who knows where the bottom price is when someone is dumping their shares.
Here is a link that explains the costs of a recent actual example of a "conversion" from 5 care beds into 4 Care suites.
http://nzx-prod-s7fsd7f98s.s3-websit...631/290269.pdf
Its in an Oceania investor presentation recently put out , check out page 30, it's all laid out quite nicely.
I think what you have confused here is the new villa builds with conversions of care bads to care suites.
New villa builds do rent out (ORA) at a premium to their build cost, the clients pay in full upfront so that margin on payment is revenue. However the "conversions" costs the company upfront which they eventually get back through an improved ORA, but this is less than the cost of the initial conversion.
The link above is well laid out and will explain how the whole thing works. Be warned, it might take a lot of effort and thinking (it did for me anyway) to get your head around the terms used , accounting etc but its all there.
care beds on there books now when converted into care suite ends up as a revaluation gain on the books probably all lumped together. i get the future revenues from the conversion are mostly delayed.
just goes show they are highly dependant on getting a good sale price for there conversions
most of your posts 3000+ are all doom and gloom. I'm hotcopper guy, i just joined to say hello to you... i remembered when A2 was trading in range of 60c to 80c few years back there were couple of posters (shorters) on hotcopper just like you...posting all day long doom and gloom posts on hotcopper A2 forum. i bought 200k A2 volumes at 72c look at the A2 share price (sold half beginning of this year when it reached to nzd $14, still holding other half).
OCA is same...solid future fundamental if anyone here for long hold then this doom and gloom posts are just hot air.... it's only matters to traders....
Enjoy!!